Menu Icon

Debt Rattle March 27 2023

Mar 272023
 
 March 27, 2023  Posted by at 8:55 am Finance Tagged with: , , , , , , , , , ,  50 Responses »


René Magritte The seducer 1953

 

• Us ‘Shoots Itself In Foot’ By Limiting Use Of Dollar – Putin (TASS)
• Russian Economy Will Remain Balanced – Medvedev (RT)
• China Could Be ‘Safe Haven’ Amid Banking Turmoil – Citi (RT)
• China and Russia Top List Of States With Largest Trade Surplus (RT)
• What You Must Know About Russia & China, But Were Afraid To Ask (Lukyanov)
• Seizing Russian Assets Is ‘Challenging’ – EU Task Force Head (RT)
• Russia To Make Three Times More Ammo Than West Promised Kiev – Putin (RT)
• The United States Is 13 Years Behind In Ammunition Production – NYT (Y!)
• Berlin Weans Itself Off Russian Gas To Become US LNG Addict – German MP (RT)
• UN Security Council To Vote On Nord Stream Sabotage Draft Resolution (TASS)
• US Becoming A ‘Banana Republic’ – Trump (RT)
• The Donald Trump Problem (Chris Hedges)
• Global South Solidarity Is The Key To Lifting Up Central America (Blankenship)
• Italians Refuse to ‘Eat Ze Bugs’ (DS)
• Agatha Christie Novels Reworked To Remove Potentially Offensive Language (G.)
• Eminent Oxford Scientist Says Wind Power “Fails on Every Count” (DS)

 

 

 

 

Putin 23 years
https://twitter.com/i/status/1639900503592120320

 

 

 

 

Putin Mariupol

 

 

Mayor

 

 

 

 

Tucker Thorp

 

 

 

 

Macgregor

 

 

Yellen

 

 

 

 

“We would use the dollar, but they do not let us..”

• Us ‘Shoots Itself In Foot’ By Limiting Use Of Dollar – Putin (TASS)

The United States does damage to itself by limiting the use of the dollar for situational reasons, Russian President Vladimir Putin said on the Rossiya-24 news channel on Saturday. “They saw off the branch they’re sitting on – I’ve been reiterating that – by limiting the use of the dollar based on momentary, situational considerations of political nature. They are harming themselves, and we might even add, they shoot themselves in the foot,” Putin said in an interview with journalist Pavel Zarubin. According to Putin, the United States’ claims that Russia is encroaching on the dollar are not true. “We would use the dollar, but they do not let us,” he explained. “How can we make payments? In a currency that is acceptable to our partners. The yuan is one of these currencies, especially since it is used by the International Monetary Fund.”


The Russian president emphasized that after the Russian gold and foreign currency reserves were frozen, all the countries in the world have wondered how reliable their US partners are. “And they have come to the conclusion that they are not reliable,” he noted. Putin underlined that Russia’s partners were happy to agree on payments in the yuan. “Do you know that the Middle Eastern oil-producing countries have announced they want to use the yuan for settlements? We will be gradually expanding this and will be expanding [the use] of the reliable currencies,” he said. Putin stated that now the dollar has certain advantages, compared to limitations on other currencies. “However, each country is determined to strengthen its national currency, and all the countries will strive to do so. Therefore, no doubt, it is a big mistake on the part of the US authorities that they restrict settlements in dollars around the world for the countries they do not like for some reason,” the Russian president concluded.

Putin dollar

Read more …

“..the EU is increasing its dependence on Beijing much faster than Moscow is..”

• Russian Economy Will Remain Balanced – Medvedev (RT)

Russia’s economy will not be reduced to the defense industry alone, despite the ongoing conflict with Ukraine and Western sanctions, former President Dmitry Medvedev told journalists on Sunday. Imbalances in the economy will not be allowed to develop, he said, adding that the country is unlikely to suffer the fate of the Soviet Union. “There is currently no threat of economic militarization in a way, in which it existed [in the USSR] in the 1970s and 1980s,” Medvedev said. The former president argued that the Soviet Union had given too much priority to the defense industry. To avoid such an imbalance, “priorities just need to be set correctly and major macroeconomic indicators monitored,” he added.

Russia does actually need to boost its defense industry, he admitted, adding that it is necessary to “lay the groundwork for the future” even after the Ukraine conflict ends. However, taking such steps will not affect other economic sectors, he believes. The USSR lacked a market system and also the strong consumer goods sector that modern Russia has, Medvedev said, adding that had the West imposed sanctions against the USSR at that time, “we would have had a hard time.” Now, Russia’s “market does not feel any colossal downturns even despite the sanctions,” the former president said. He particularly lauded Russia’s agriculture sector, saying that not only does it allow Russia to meet its own food supply needs but also enables it to “feed others.”

Russia has also managed to keep national inflation rate lower than in many European nations, Medvedev said. “They instigated this campaign, started to fight us and now some nations have an inflation rate of between 15% and 20%,” he said, noting that inflation in Russia is on track to come in at 6% in March and subsequently drop to 4%. Earlier on Sunday, Russian President Vladimir Putin also highlighted that the EU is increasing its dependence on Beijing much faster than Moscow is. RIA Novosti reported in March that Russia and China also topped the list of nations with the biggest trade surpluses last year.

Read more …

One year into increasing sactions, Russia is balanced, China is a safe haven.

• China Could Be ‘Safe Haven’ Amid Banking Turmoil – Citi (RT)

The unfolding banking crisis in the US and Europe, which has shattered investor confidence in the Western financial system, could highlight China as a “relative safe haven,” economists at Citi said in a note seen by CNBC. The Chinese economy could see accelerated expansion this year, giving the country a “hedge” for growth while economies in the US and Europe face heightened risk of financial disruption, according to the note. “We have long been discussing our view that China can be a major growth hedge this year – if anything, recent global banking stresses perhaps have strengthened this thesis,” a team led by Citi’s Chief China economist Xiangrong Yu reportedly stated.

“China could at least be a relative ‘safe haven’ given its growth premium, financial soundness, policy discipline and the new political economy cycle,” the economists argued. They pointed to the recent decision by the People’s Bank of China (PBoC) to cut its reserve requirement ratio (RRR), saying the move showed “reassurance of policy support amid global volatilities.” The regulator reduced the ratio for almost all banks by 25 basis points last week, with the move widely viewed as an attempt of ensuring liquidity in the banking system. “Perhaps taking lessons from what the US has been going through in recent years, the PBoC has been prudent in easing even during the pandemic era and may quickly switch to a wait-and-see mode once growth is back on track,” the analysts wrote.

They also noted the Chinese government’s restructuring earlier this month as part of the effort to ease financial risks. According to CNBC, Citi also expects to see the onshore yuan strengthening against the US dollar as soon as September, which would bring the renminbi to its strongest levels since April last year. “With the unintended and undesirable from aggressive interest rate hikes surfacing abroad, capital inflows into China could resume after they reopen trade if the recovery thesis plays out and political rerating is steadily ongoing,” Citi concluded.

Read more …

“Both countries broke their own records in 2022, with China’s trade surplus surging 30% to an all-time high of $877.6 billion..”

• China and Russia Top List Of States With Largest Trade Surplus (RT)

China and Russia became the world leaders in trade surplus last year, according to calculations by RIA Novosti based on data from the national statistical services of both countries. A trade surplus is an indicator of a positive balance of trade, where a country’s exports exceed its imports. Traditionally, by showing that local currency and resource inflow exceeds outflow, a surplus serves as an indicator of a healthy economy. Both countries broke their own records in 2022, with China’s trade surplus surging 30% to an all-time high of $877.6 billion. The country exported approximately $3.59 trillion worth of goods, a growth in export value of about 7% compared to the previous year. Imports, meanwhile, grew by only 1.1%, to roughly $2.72 trillion.

Russia increased its surplus 1.7 times over the year to a record $333.4 billion, claiming the second place among major economies. The country’s total exports reached $591.4 billion, up 19.9% from 2021. The surge was driven by the rise in energy sales, which made up the bulk of Russia’s foreign exports and reached $383.73 billion, a 42.8% year-on-year increase. Imports, however, slid 11.7% against the previous year to $259.1 billion. Analysts attribute the drop in imports to Western sanctions on Russia, combined with Moscow’s efforts toward self-sufficiency and import substitution measures. Saudi Arabia, which posted its highest trade surplus since 2012 at $221.3 billion, ranked third, followed by Norway, Australia and Qatar.

Germany saw its figure drop 2.4 times to $85.34 billion, slipping to the seventh spot from the second place a year earlier. Canada, meanwhile, became the absolute leader in terms of growth, with its number jumping 4.8 times throughout the year, to $17.45 billion. According to the data, the only country that was able to move from a deficit to a surplus in trade at the end of last year was Nigeria. Overall, 26 major economies recorded a surplus in 2022, compared to 32 economies a year earlier. The study was conducted by RIA Novosti on the basis of data from the national statistical services of the globe’s 60 largest economies, which had disclosed trade results for January-December 2022 as of mid-March.

Read more …

“..when it comes to preparedness for adverse changes and shocks (let’s call it state endurance), Moscow is probably in the lead, but Beijing’s room for maneuver in global politics is now much greater.”

• What You Must Know About Russia & China, But Were Afraid To Ask (Lukyanov)

So much has been said about Xi Jinping’s visit to Russia last week, that the descriptive genre has been exhausted. What is needed instead is either details on specific aspects or some sort of in-depth socio-cultural analysis. That will no doubt be done by specialists in those areas, so we will confine ourselves here to brief answers to the most frequently asked questions. Are Russia and China allies? Both countries have limited experience of alliances and are not really inclined towards this form of relationship. Such a declaration implies a commitment and, more importantly, a limitation of one’s own interests and capabilities in favor of the other state. If it is reciprocal, it is fine – and can be mutually beneficial – but the dominant attitude in both Chinese and Russian political logic is freedom of action and maximum sovereignty. As a result, both Moscow and Beijing shy away from describing their relationship as an alliance, preferring more fluid phrases. This has happened again. It should be noted, however, that the expressions used by Xi come perhaps as close to the idea of an alliance (as is possible in Chinese culture) without using the term.

Is the relationship equal? The question of equality is largely arbitrary – it is not clear how to measure it. There is no formal hierarchy in relations between Russia and China, and in principle there cannot be such a system. It is difficult to compare the weight. China is, of course, much more powerful economically, and now also in many technological respects. However, Russia is a major military and political power in its own right. Indeed, when it comes to preparedness for adverse changes and shocks (let’s call it state endurance), Moscow is probably in the lead, but Beijing’s room for maneuver in global politics is now much greater.

The question could be posed differently: who needs it more, and who should therefore do more to strengthen ties? At first glance, Russia would seem to need it the most – no matter how well you do, an acute conflict with a group of the world’s most successful and influential states significantly limits your options. Thus, they need to be compensated by other partners which are no less important and therefore able to impose conditions. The most powerful of them all is China. This is true, but there is another side to it. Beijing has finally realized that the time of peaceful and comfortable development is over. It is China that the United States sees as its main adversary for decades to come, and the pressure on it will only increase. Beijing has no more solid and reliable partner than Moscow; there is simply no other candidate. And the importance of such a relationship will continue to grow. Traditional Chinese pragmatism works in our favor.

Putin axis

Read more …

“..the EU’s “freeze and seize task force..”

• Seizing Russian Assets Is ‘Challenging’ – EU Task Force Head (RT)

The EU working group that deals with the issue of confiscating frozen Russian assets will have to be “innovative” in approaching the task, Swedish diplomat and head of the EU’s “freeze and seize task force,” Anders Ahnlid, told AFP on Friday. According to Ahnlid, “it is a challenge to find legal means that are acceptable” to expropriate the assets in order to use them for the reconstruction of Ukraine, which is the task force’s plan. He noted that precedents for such actions are rare, one of the few being the seizure of Iraqi assets by the US at the end of Saddam Hussein’s regime. “Hopefully, we can achieve results during Sweden’s EU presidency [which ends in June]… But these are complicated matters. There will be short-term and long-term aspects of what we’re doing,” the diplomat warned, adding that his working group will have “to be a bit innovative in order to move forward.”

He noted that the task force is still trying to determine “which assets are we talking about and where are they.” There are two types of assets – state property that belongs to the Russian government and private assets. The former mostly refers to nearly $300 billion in Russia’s foreign currency reserves, which have been frozen by the West. According to Ahnlid, they are easier to seize legally. The latter, however, are much harder to identify and can be seized only in a few cases, for instance when they can be proven to be the proceeds of a crime. The diplomat says the task force may decide not to confiscate these assets permanently, but only seize income or interest on the capital. sAhnlid is not the first to point out the difficulties surrounding the plan to confiscate Russian assets. The Swiss government, for instance, has been opposed to the move, saying last month that it would violate international agreements and Switzerland’s constitution.

US Treasury Secretary Janet Yellen has also been openly skeptical, warning that apart from legal obstacles, such a step could be considered a precedent jeopardizing faith in the Western financial system and the dollar. According to her, countries could become reluctant to keep money in US banks, fearing that their funds could be seized as well. Many analysts also point out that the move could put European and American assets at risk, as they could also be in danger of being confiscated in case of an international dispute. Moscow, meanwhile, has repeatedly called the freezing of its assets “theft,” and warned of countermeasures should Western states attempt to take Russian-owned funds and redirect them to Ukraine.

Read more …

And you can’t easily ramp that up..

• Russia To Make Three Times More Ammo Than West Promised Kiev – Putin (RT)

Russia is set to drastically increase its munitions production, President Vladimir Putin has said, adding that Western arms shipments to Kiev will only delay the inevitable outcome of the Ukraine conflict. In an interview with Russia 1 TV aired on Saturday, Putin was asked to comment on Western plans to support Ukraine with a million additional artillery shells. While describing the amount as “very considerable,” the president stated that according to Moscow’s data, the US is currently producing 14,000-15,000 artillery shells a month, while the Ukrainian military uses up to 5,000 shells each day. “Next year… [the US plans] to produce as much as 42,000, and 75,000 in 2025.”

However, Putin said that Moscow’s forces have been using far more munitions than Ukraine, and that the Ministry of Defense and the General Staff “even had to introduce certain limitations.” “Russia’s output level and its military-industrial complex are developing at a very fast pace, which was unexpected by many,” he said. While multiple Western countries will provide Ukraine with munitions, “the Russian production sector on its own will produce three times more ammunition for the same period of time,” according to the president. Putin also noted that the Western “instigators” of the conflict plan to send more than 400 tanks to Ukraine.

“The situation here is the same as with the ammunition. During that period, we will produce and modernize over 1,600 [tanks],” he said, adding that the total number will exceed Ukraine’s by more than three times. Putin stated that the arms shipments to Ukraine are of concern to Russia only because they constitute “an attempt to prolong the conflict” and will “only lead to a bigger tragedy and nothing more.” The president’s comments come after former Russian President Dmitry Medvedev, who now serves as deputy chairman of the Security Council, stated this week that Moscow has rapidly boosted military production despite the Western sanctions and claims that Russia is running out of weapons.

Read more …

Hmmmm, make more or use less?! Their choice is obvious.

• The United States Is 13 Years Behind In Ammunition Production – NYT (Y!)

The United States’ commitment to support Ukraine against the Russian invasion appears to have rattled the stability of the domestic stockpile of missiles and munitions. The Biden administration has promised — as part of $33 billion sent in military aid for the besieged country so far — a US Patriot air-defense system will be sent to Ukraine, along with over 200,000 rounds of artillery, rockets, and tank rounds. In fulfilling those promises, The New York Times reported the US has sent Ukraine so many stockpiled Stinger missiles that it would take 13 years of production at recent capacity levels to replace them. The Times added that Raytheon, the company that helps make Javeline missile systems, said it would take five years at last year’s production rates to replace the number of missiles sent to Ukraine in the last ten months.

Currently, the US produces just over 14,000 rounds of 155mm ammunition every month — and Ukrainian forces have previously fired that many rounds in the span of 48 hours, The Washington Post reported last month. US officials in January proposed a production increase up to 90,000 rounds of 155mm ammunition each month to keep up with demand. “Ammunition availability might be the single most important factor that determines the course of the war in 2023,” US defense experts Michael Kofman and Rob Lee wrote in December for the Foreign Policy Research Institute, adding that Ukraine will depend on international stockpiles and production for access to the ammunition it needs.

The United States has rarely seen production shortages in ammunition and missiles to the degree the country currently faces. While there was a brief precision missile shortage in 2016 following fights in Libya and Iraq, The Times reported, the US has largely been engaged in short-term, high-intensity fights such as the Persian Gulf War, or prolonged, lower-intensity missions like the war in Afghanistan, which allowed for the stockpile to be rebuilt as needed. Now, as tensions rise among global superpowers, production and munition limitations in the US — caused by supply chain shortages, as well as Cold War-era reductions in capacity, The Times reported — have become of grave concern among defense professionals.

Read more …

At a much higher cost. Economy driven by ideology. Deadly.

• Berlin Weans Itself Off Russian Gas To Become US LNG Addict – German MP (RT)

The sabotage of the Nord Stream natural gas pipelines has turned Germany’s dependence on Russian natural gas into an addiction to liquefied natural gas (LNG) from the US, a member of the German Bundestag, Andrej Hunko, has said. Germany has paid heavily for last year’s explosions on the pipelines, which were built to deliver cheap natural gas from Russia, The Left party politician told China’s Global Times newspaper in an interview on Thursday. He noted that the sabotage left Berlin without an option to “choose which gas is better and cheaper and which is ecologically better.” “Before, it was a decision under political pressure, whether to use gas or not. But now there is no infrastructure to use gas,” and “this is the biggest impact,” Hunko said.

Germany used to meet up to 40% of its demand with gas from Russia. Last year, Berlin managed to reduce its reliance on the fuel from the sanctioned country by replacing it with imports of LNG from the US, “which is by far more expensive and worse from an ecological point of view,” according to Hunko. The politician said the explosions were an act of an “economic war” targeting not only Germany but the entire EU. The Nord Stream 1 pipeline, which runs under the Baltic Sea and carried natural gas from Russia to Germany, along with the newly built but never used Nord Stream 2, were ruptured by underwater bombs last September, rendering them inoperable. “Who benefits from this? It’s clear. It’s mainly the countries that export the gas to Germany; it is mainly the US,” Hunko said, adding: “this means not only higher prices for gas for the German population, but also a problem for German industry.”

Prior to the conflict in Ukraine, Germany was already experiencing economic difficulties due to a shortage of qualified personnel and muted productivity growth. Skyrocketing energy prices have since dealt a serious blow to the economy which is based on low energy prices and exports, Hunko noted. He warned that the surging cost of energy and raw materials, and the resulting restraints on investment, are forcing some major businesses to leave the country as “it is no longer as interesting for big companies to stay in Germany”. Some businesses have already migrated to the US, the politician said, arguing that this indicates an economic competition between the US, Germany and Europe.

Read more …

Provoke US into using its veto power.

• UN Security Council To Vote On Nord Stream Sabotage Draft Resolution (TASS)

The UN Security Council will vote on Monday on a Russian-Chinese draft resolution on an international investigation into the sabotage of the Nord Stream 1 and Nord Stream 2 pipelines. Voting is expected to be held after 15:00 (22:00 Moscow time). The text of the draft proposes UN Secretary General Antonio Guterres to establish an international independent commission to conduct a comprehensive, transparent, and impartial investigation of all aspects of the act of sabotage on the Nord Stream 1 and Nord Stream 2 gas pipelines, including identifying the perpetrators, sponsors, organizers, and their accomplices. Guterres is expected to appoint experts to this commission. If the resolution is passed, he must make recommendations for its establishment within 30 days.

The document also encourages countries conducting their own investigations to fully collaborate with the commission and share information with it. The document urges these nations to share information with other interested parties as well. Russia prepared the first version of the Nord Stream resolution at the end of February, but did not immediately bring it to a vote, instead inviting Security Council members to discuss the document. Three sets of consultations have been held since. According to TASS sources within the world organization, there is no general agreement on Russia’s suggested document, which means it will most likely not be adopted. A resolution must be backed by at least nine Security Council members in order to be adopted.

Any of the permanent members may veto it, but only if the necessary number of votes is obtained to pass the document. If the resolution receives eight votes and the United States votes against it, it means that the veto was not used. However, if the document receives nine or more votes, voting against it will result in the use of the veto power. “It’s not about the number of votes; it’s about the way they vote,” according to Vasily Nebenzya, Russia’s Permanent Representative to the United Nations. Previously, Western countries claimed that Russia was isolated and did not have the Security Council’s support, because it opposes the UN Security Council’s initiatives on Ukraine, while the rest of the Council’s members either back it or abstain.

Read more …

“Justice will only be done once we have thrown this repulsive political class the hell out of office..”

• US Becoming A ‘Banana Republic’ – Trump (RT)

Former President Donald Trump told his supporters on Saturday that President Joe Biden is turning the US into a “banana republic,” and promised to throw the “repulsive political class the hell out of office” if re-elected next year. Trump, who is reportedly facing arrest over campaign finance charges in New York, held his first campaign rally ahead of the 2024 election in Waco, Texas, on Saturday. Speaking to a crowd of several thousand people, Trump reiterated his long-held belief that the charges against him – as well as the prosecution of the January 6, 2021, rioters – are a Democrat-orchestrated plot to keep him out of office and criminalize his supporters.

“The Biden regime’s weaponization of law enforcement against their political opponents is something straight out of the Stalinist Russia horror show,” he declared, calling Biden’s America “a third-world banana republic.” “From the beginning it’s been one witch hunt and phony investigation after another,” Trump asserted, adding “it’s no coincidence that the deep state is coming after me even harder since I pledged to swiftly end the war in Ukraine.” Trump has claimed for months that if elected, he would be able to achieve a settlement to the conflict within 24 hours. He has not elaborated further on how he would achieve this, but has blamed the conflict on “all the warmongers and ‘America Last’ globalists” in the Pentagon, State Department, and other organs of the national security establishment and “deep state.”

“Justice will only be done once we have thrown this repulsive political class the hell out of office,” he told the crowd in Waco on Saturday. Trump made a number of campaign promises at the rally, vowing to boost domestic energy production, phase out imports from China, end funding for “critical race theory and transgender insanity” in schools, and use state, federal, and military resources to “carry out the largest domestic deportation operation in American history.” “Eisenhower did it, so we don’t have to feel so bad,” Trump quipped, referring to the removal of more than a million illegal immigrants by Dwight D. Eisenhower’s administration in the early 1950s under ‘Operation Wetback.’

Trump is currently leading most polls to take the Republican nomination in 2024, with Florida Governor Ron DeSantis in second place by between two and 30 points. While DeSantis has not declared his candidacy, Trump devoted a portion of his speech at Waco to attacking his potential opponent. Referring to DeSantis as “DeSanctimonious,” Trump took credit for the governor’s political career, and condemned him for shutting down his state at the beginning of the coronavirus pandemic.

Read more …

Hedges talks about all the court cases vs Trump, but fails to say what weight they have.

• The Donald Trump Problem (Chris Hedges)

As was the case with Nixon, the most serious charges Trump may face involve his attack on the foundations of the two-party duopoly, especially undermining the peaceable transfer of power from one branch of the duopoly to the other. In Georgia, Trump could face very serious criminal charges with potentially lengthy sentences if convicted, likewise if the federal special prosecutor indicts Trump for unlawful interference in the 2020 election. We won’t know until any indictments are made public. Yet, the most egregious of Trump’s actions while in office either received minimal media coverage, were downplayed or lauded as acts carried out in defense of democracy and the U.S.-led international order.

Why hasn’t Trump been criminally investigated for the act of war he committed against Iran and Iraq when he assassinated Iranian Major General Qassem Soleimani and nine other people with a drone strike in Baghdad airport? Iraqi Prime Minister Adel Abdul-Mahdi condemned the strike and told his parliament that Trump lied in order to get Soleimani exposed in Iraq as part of peace talks between Iraq, Iran and Saudi Arabia. Iraq’s parliament passed a resolution demanding that all foreign troops leave the country, which the U.S. government proceeded to reject. Why not prosecute or impeach Trump for pressuring his secretary of state to lie and say that Iran wasn’t complying with the Joint Comprehensive Plan of Action, known as the Iran nuclear deal? Trump ultimately fired him and resumed unilateral, devastating and illegal sanctions against Iran, in violation of international law and quite possibly domestic U.S. law.

Why wasn’t Trump impeached for his role in the ongoing attempts to engineer a coup and overthrow the democratically elected president of Venezuela? Trump declared a previously unknown right-wing politician — and would-be coup leader — Juan Guaido to be the true Venezuelan president and then illegally handed him control of the Latin American country’s U.S. bank accounts. The illegal U.S. sanctions that have facilitated this coup attempt have blocked food, medicine and other goods from entering the country and prevented the government from exploiting and exporting its own oil, devastating the economy. Over 40,000 people died between 2017 and 2019 due to the sanctions, according to the Center for Economic and Policy Research. That figure is certainly higher now.

Nixon, like Trump, was not impeached for his worst crimes. He was never charged for directing the CIA to destroy the Chilean economy and back a far-right military coup that overthrew the democratically elected left-wing government of Salvador Allende. Nixon wasn’t brought to justice for his illegal, secret mass bombing campaigns in Cambodia and Laos that killed hundreds of thousands of civilians, and his government’s role in the slaughter of Vietnamese people, resulting in at least 3.8 million killed according to a joint report from Harvard University and the University of Washington and even higher casualties according to investigative journalist Nick Turse. Nixon wasn’t held accountable for what then-President Lyndon Johnson privately blasted as “treason” when he discovered that the yet-to-be-elected Republican candidate for president, and his future National Security Advisor, Henry Kissinger, were deliberately and illegally sabotaging his peace negotiations in Vietnam, ultimately prolonging the war for another four years.

Read more …

China has substantially raised its profile in America’s backyard.

• Global South Solidarity Is The Key To Lifting Up Central America (Blankenship)

Honduran President Xiomara Castro caused a stir in the media when, on March 14, she remarked that she instructed her foreign minister to re-establish diplomatic ties with China. This was met with strong approval in Beijing while Honduran Foreign Minister Enrique Reina reiterated that his nation is seeking “all the mechanisms that the international relationship serves for the interests of the people” and that his nation must “cooperate with the largest nations in the world.” But, of course, the move was met with disgust in Washington, which, through its dated “Monroe Doctrine” that places the Western Hemisphere firmly in the US sphere of influence, sees itself as the overlord of Latin America. For example, US Senator Bill Cassidy said on Twitter that Honduras was moving closer to China “while the world is moving away” and that “the Honduran people will suffer because of [Castro’s] failed leadership.”

To be fair, the US sure knows a thing or two about the suffering of Hondurans and other Central Americans, locking them and their children in cages as they flee destitution to the US. Washington has also orchestrated numerous coups that have devastated the region. At the same time, China has a record of helping Central American nations, including Nicaragua, which recently re-established ties with Beijing. In February, China and Nicaragua agreed to step up their negotiations on a mutually beneficial free trade agreement and to advance the development of bilateral ties. To get a sense of this importance, I spoke to acclaimed American journalist Benjamin Norton at that time, who lives in Nicaragua and has been extensively covering China-Nicaragua ties. He told me that “the trade negotiations between Nicaragua and China are an important step in the deepening of South-South cooperation and the construction of a multipolar world.”

According to Norton, “historically the United States has treated Latin America in general, and Central America in particular, as its colonial property. The US militarily occupied Nicaragua three times and for decades propped up a brutal right-wing military dictatorship which imposed austerity on its population and sent all exports to the US for pennies on the dollar.” Norton noted that in 2018 the US again “sponsored a violent coup attempt against Nicaragua’s democratically elected Sandinista government. When the putsch failed, Washington responded with economic warfare, imposing several rounds of aggressive unilateral sanctions, such as the devastating NICA Act, while pushing for a financial blockade.” He noted that these sanctions are illegal under international law and “have done significant damage to the Nicaraguan economy, hurting working-class Nicaraguans.”

Honduras

Read more …

“It’s fundamental that these flours are not confused with food made in Italy..”

• Italians Refuse to ‘Eat Ze Bugs’ (DS)

Our WEF overlords may want us to ‘eat ze bugs’ and be happy, but Italians are having none of it, as their Government has banned the use of insect flour in pizza and pasta. The Times has more: “The growing use in cooking of flour made from crickets, locusts and insect larvae has met fierce opposition in Italy, where the Government is to ban its use in pizza and pasta and segregate it on supermarket shelves. In a sign of fear that insects might be associated with Italian cuisine, three Government ministers called a press conference in Rome to announce four decrees aimed at a crackdown. “It’s fundamental that these flours are not confused with food made in Italy,” Francesco Lollobrigida, the agriculture minister, said.


Packed with vitamins, proteins and minerals, flour made from crickets is increasingly seen as an ecological way to obtain nutrients, and the market is forecast to reach $3.5 billion by 2029. The EU has already authorised foods made from crickets, locusts and the darkling beetle larva. In January mealworm larvae was added to the list. All four insects are cited in the Italian decrees, which will require any products containing them to be labelled with large lettering and displayed separately from other foods. “Whoever wants to eat these products can, but those who don’t, and I imagine that will be most Italians, will be able to choose,” Lollobrigida said.” When historians look back and wonder what thwarted the Great Reset, perhaps the Italian refusal to ruin their beloved pasta and pizza will be seen as the catalyst.

Read more …

We need something akin to seed banks, where original literature is stored for future generations.

• Agatha Christie Novels Reworked To Remove Potentially Offensive Language (G.)

Several Agatha Christie novels have been edited to remove potentially offensive language, including insults and references to ethnicity. Poirot and Miss Marple mysteries written between 1920 and 1976 have had passages reworked or removed in new editions published by HarperCollins to strip them of language and descriptions that modern audiences find offensive, especially those involving the characters Christie’s protagonists encounter outside the UK. Sensitivity readers had made the edits, which were evident in digital versions of the new editions, including the entire Miss Marple run and selected Poirot novels set to be released or that have been released since 2020, the Telegraph reported.

The updates follow edits made to books by Roald Dahl and Ian Fleming to remove offensive references to gender and race in a bid to preserve their relevance to modern readers. The newspaper reported that the edits cut references to ethnicity, such as describing a character as black, Jewish or gypsy or a female character’s torso as “of black marble” and a judge’s “Indian temper”, and remove terms such as “Oriental” and the N-word. The word “natives” has also been replaced with the word “local”.

Among the examples of changes cited by the Telegraph is the 1937 Poirot novel Death on the Nile, in which the character of Mrs Allerton complains that a group of children are pestering her, saying that “they come back and stare, and stare, and their eyes are simply disgusting, and so are their noses, and I don’t believe I really like children”. This has been stripped down in a new edition to state: “They come back and stare, and stare. And I don’t believe I really like children.”

Read more …

“..the infrastructure around wind and solar will not only fail, “but will cost trillions, trash large portions of the environment and be entirely unnecessary..”

• Eminent Oxford Scientist Says Wind Power “Fails on Every Count” (DS)

It could be argued that the basic arithmetic showing wind power is an economic and societal disaster in the making should be clear to a bright primary school child. Now the Oxford University mathematician and physicist, researcher at CERN and Fellow of Keble College, Emeritus Professor Wade Allison has done the sums. The U.K. is facing the likelihood of a failure in the electricity supply, he concludes. “Wind power fails on every count,” he says, adding that governments are ignoring “overwhelming evidence” of the inadequacies of wind power, “and resorting to bluster rather than reasoned analysis”. Professor Allison’s dire warnings are contained in a short paper recently published by the Global Warming Policy Foundation.

He notes that the energy provided by the Sun is “extremely weak”, which is why it was unable to provide the energy to sustain even a small global population before the Industrial Revolution with an acceptable standard of living. A similar point was made recently in more dramatic fashion by the nuclear physicist Dr. Wallace Manheimer. He argued that the infrastructure around wind and solar will not only fail, “but will cost trillions, trash large portions of the environment and be entirely unnecessary”. In his paper, Allison concentrates on working out the numbers that lie behind the natural fluctuations in the wind. The full workings out are not complicated and can be assessed from the link above. He shows that at a wind speed of 20mph, the power produced by a wind turbine is 600 watts per square metre at full efficiency.

To deliver the same power as the Hinkley Point C nuclear plant – 3,200 million watts – it would require 5.5 million square metres of turbine swept area. It is noted that this should be quite unacceptable to those who care about birds and other environmentalists. Of course, this concern does not seem to have materialised to date. Millions of bats and birds are calculated to be slaughtered by onshore wind turbines every year. Meanwhile, off the coast of Massachusetts, work is about to start on a giant wind farm, complete with permits to harass and likely injure almost a tenth of the population of the rare North Atlantic Right whale. When fluctuations in wind speed are taken into account in Allison’s formula, the performance of wind becomes very much worse. If the wind speed drops by half, the power available falls by a factor of eight.

Almost worse, he notes, if the wind speed doubles, the power delivered goes up eight times, and the turbine has to be turned off for its own protection. For eight days at the end of the month, power generation slumped, presumably, says Allison, because the wind speed halved. The 8.8 GW daily loss over the period was noted to be 1,000 times the capacity of the world largest grid storage battery at Moss Landings in California. When it comes to the enormous batteries needed to store renewable power, Allison notes the problems with safety, as well as mineral shortages. Batteries will never make good the failure of offshore wind farms, even for a week, and he points out they can fail for much longer than that.

Read more …

 

 

 

 

Led by Donkeys

 

 

 

 

Sunak
https://twitter.com/i/status/1639966313417261056

 

 

Cybertruck

 

 

Sleep seal
https://twitter.com/i/status/1639979941608542209

 

 

Baby jaguar

 

 

The Big fight
https://twitter.com/i/status/1639940131762077700

 

 

 

 

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

 

 

 

 

 

Iran-Saudi Rapprochement Will Deal A Deathblow To The Dollar

Mar 162023
 
 March 16, 2023  Posted by at 2:51 pm Finance Tagged with: , , , , , , , ,  9 Responses »


Jacob Lawrence Struggle: From the History of the American People, Panel 8 1954

Andrew Korybko:

Eurasia’s geo-economic integration took a great leap forward as a result of the Iranian–Saudi rapprochement, which unlocks the Gulf Cooperation Council’s (GCC) trade potential with Russia and China. Its wealthy members can now tap into two series of Iranian-transiting megaprojects in one fell swoop through this deal, with the North-South Transport Corridor (NSTC) connecting them to Russia while the China-Central Asia-West Asia Economic Corridor (CCAWAEC) will do the same vis-à-vis China.

The bloc’s de facto Saudi leader has been prioritizing a comprehensive economic reform policy known as “Vision 2030” that was introduced by Crown Prince and first-ever Prime Minister Mohammed Bin Salman (MBS) upon his rise to power in 2015. It regrettably stumbled as a result of the disastrous Yemeni War that he’s been waging since that same year, but everything is now back on track and more promising than ever after securing $50 billion worth of investments from China last December.

The People’s Republic regards Vision 2030 as complementary to its Belt & Road Initiative (BRI) due to MBS’ focus on real-sector investments for preemptively diversifying the Saudi economy away from its presently disproportionate dependence on oil exports. His country’s location at the crossroads of Afro-Eurasia also makes investments there extremely attractive from the perspective of China’s logistical interests, hence its massive commitment to his comprehensive economic reform policy.

Without last week’s Beijing-brokered deal, China would have had to rely on maritime routes under the control of the powerful US Navy to facilitate the forthcoming explosion in bilateral real-sector trade, but now everything can be conducted much more securely via the Iranian-transiting CCAWAEC. Looking forward, there’s also a theoretical possibility of Chinese energy investments in Iran connecting the Gulf to Central Asia and thenceforth to the People’s Republic, thus fully securing its strategic interests.

That’s still a far way’s off, if it even happens at all that is, but it nevertheless can’t be ruled out. Saudi Arabia’s desire to join BRICS and the SCO, which are the most influential multipolar organizations in the world right now, could turn this scenario into a reality a lot sooner than even the most optimistic observers might have expected. All of this in and of itself will herald a revolution in geo-economic affairs, and that’s even without Saudi Arabia having yet to throw its full support behind the “petroyuan”.

Once this major oil exporter begins to sell its resources in non-dollar-denominated currencies like China’s, then the petrodollar upon which the economic-financial aspect of the US’ unipolar hegemony is predicated will be dealt a deathblow. The global systemic transition to multipolarity and the impending trifurcation of International Relations that will precede the final inevitable form of this process would unprecedentedly accelerate once this happens, thus further hastening America’s ongoing demise.

About those aforementioned processes, they were already made irreversible by the special operation that Russia was forced to commence in defense of its national security red lines in Ukraine after NATO clandestinely crossed them there and subsequently rejected Moscow’s security guarantee requests for politically resolving their resultant security dilemma. Over the past year, the New York Times was forced to admit that not only did the sanctions fail, but even the plot to “isolate” Russia did too.

These outcomes were largely the result of Russia’s example inspiring the Global South to rise up against neo-colonialism by refusing to comply with the demands placed upon them by the US-led West’s Golden Billion to unilaterally sacrifice their own interests simply to serve that de facto New Cold War bloc’s. India played the leading role in this respect due to its status as the world’s largest developing country, which gave comparatively medium- and smaller-sized ones the confidence to follow in its footsteps.

That globally significant Great Power, which sits on the South Asian end of the NSTC that transits through Iran en route to Russia, also scaled up its purchases of discounted oil from Moscow to the point where its decades-long strategic partner is nowadays its largest supplier. Of crucial significance to the present analysis, a growing number of its deals are in non-dollar-denominated currencies, which sped up de-dollarization processes to such an extent that even Reuters felt compelled to write about this.

Considering this newfound financial context, there’s no doubt that upcoming Saudi moves in support of the petroyuan that are taken in coordination with Iran and Russia would catalyze the next natural phase of de-dollarization. Russian-GCC real-sector trade that’ll be carried out via Iran across the NSTC will be conducted in national currencies and thus prepare those three for the moment when they finally decide to deal a deathblow to the petrodollar.

All in all, it’s not hyperbole to declare that the dollar’s prior dominance is done for as a result of the Iranian-Saudi rapprochement. That Beijing-brokered deal makes this outcome an inevitability unless some subversive black swan event takes place such as a US-backed coup against MBS, though that’s unlikely to happen after he successfully consolidated his power in late 2017. With this in mind, it can confidently be declared that that last week’s development will be seen in hindsight as a game-changer.

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, you are now not just a reader, but an integral part of the process that builds this site. Thank you for your support.

Support the Automatic Earth in virustime. Click at the top of the sidebars to donate with Paypal and Patreon.

Debt Rattle October 29 2022

Oct 292022
 
 October 29, 2022  Posted by at 8:40 am Finance Tagged with: , , , , , , , , , ,  64 Responses »


Pablo Picasso Head of a bearded man 1940

 

• Everybody Wants To Hop On The BRICS Express (Escobar)
• Russia’s Move Away From Dollar ‘Irreversible’ – Leading Banker (RT)
• Erdogan: Turkiye Will Ensure Distribution Of Russian Gas To Europe (Az.)
• Russian Gas Supplies To EU Almost Halved – Novatek CEO (RT)
• Putin Explains Western Economic Model (RT)
• China Will Support Russia In ‘Overcoming Difficulties’ – Wang (RT)
• Russia Suggests Alternative To Suez Canal (RT)
• NATO Set To Attack Tiraspol? (Sant)
• Nuclear blackmail. Escalation scenarios – Konstantin Sivkov (Saker)
• EU Approves Gasoline Car Ban In 2035 (RT)
• World Is Moving Into Phase Of Confrontation – German President (Az.)
• They Will Blame WWIII On Germany Too (Pattberg)
• An Election, If You Can Hold It (Kunstler)
• EU Commissioner To Elon Musk: Twitter Will Play By Our Rules (Pol.eu)
• “The Gates of Hell Opened” As Musk Takes Over Twitter (Turley)
• It Looks Like Credit Suisse Could Be Failing (NC)
• If You Got the Covid Shot And Aren’t Injured, This May Be Why – Ryan Cole (BLN)

 

 

“The world will ask you who you are, and if you don’t know, the world will tell you.”
~ Carl Jung

 

 

 

 

Free them

 

 

 

 

Tucker warming

 

 

 

 

 

 

Here is a number of articles that paint the picture of how the world is changing. No coverage in the west whatsoever. I hope those of you who come here regularly do grasp -part of- that picture.

• Everybody Wants To Hop On The BRICS Express (Escobar)

Iran made known its interest to join BRICS even before Saudi Arabia. According to Persian Gulf diplomatic sources, they are already engaged in a somewhat secret channel via Iraq trying to get their act together. Turkey will soon follow – certainly on BRICS and possibly the SCO, where Ankara currently carries the status of extremely interested observer. Now imagine this triad – Riyadh, Tehran, Ankara – closely joined with Russia, India, China (the actual core of the BRICS), and eventually in the SCO, where Iran is as yet the only West Asian nation to be inducted as a full member. The strategic blow to the Empire will go off the charts. The discussions leading to BRICS+ are focusing on the challenging path towards a commodity-backed global currency capable of bypassing US dollar primacy.

Several interconnected steps point towards increasing symbiosis between BRICS+ and SCO. The latter’s members states have already agreed on a road map for gradually increasing trade in national currencies in mutual settlements. The State Bank of India – the nation’s top lender – is opening special rupee accounts for Russia-related trade. Russian natural gas to Turkey will be paid 25 percent in rubles and Turkish lira, complete with a 25 percent discount Erdogan personally asked of Putin. Russian bank VTB has launched money transfers to China in yuan, bypassing SWIFT, while Sberbank has started lending out money in yuan. Russian energy behemoth Gazprom agreed with China that gas supply payments should shift to rubles and yuan, split evenly.

Iran and Russia are unifying their banking systems for trade in rubles/rial. Egypt’s Central Bank is moving to establish an index for the pound – through a group of currencies plus gold – to move the national currency away from the US dollar. And then there’s the TurkStream saga. Ankara for years has been trying to position itself as a privileged East-West gas hub. After the sabotage of the Nord Streams, Putin has handed it on a plate by offering Turkey the possibility to increase Russian gas supplies to the EU via such a hub. The Turkish Energy Ministry stated that Ankara and Moscow have already reached an agreement in principle. This will mean in practice Turkey controlling the gas flow to Europe not only from Russia but also Azerbaijan and a great deal of West Asia, perhaps even including Iran, as well as Libya in northeast Africa. LNG terminals in Egypt, Greece and Turkiye itself may complete the network.

Read more …

The consequences of American overreach. Once Saudi goes, so does the dollar. And Saudi can’t stay away much longer, it’s very much against their own interest.

• Russia’s Move Away From Dollar ‘Irreversible’ – Leading Banker (RT)

Russia is moving away from using the US dollar and euro in foreign trade, a process that is “irreversible,” claimed Andrei Kostin, the head of VTB Bank, one of Russia’s largest lenders. “Quitting the US dollar and euro is already an irreversible process for Russia. Taking into account the current trend, our main foreign trade partners in the medium term will be China, the EAEU countries, Turkey, India, Middle East, Latin America, and Africa. Switching to national currencies in trade with this particular group of countries is the top priority for us,” Kostin said at the Eurasian Economic Forum in Baku on Thursday.

Moreover, according to the banker, the decision made by the US and other Western nations to freeze Russia’s foreign exchange reserves earlier this year shows that no country is safe from such treatment, a state of affairs that will likely turn other nations away from the major reserve currencies. “No state can feel fully protected in the conditions of a dollar-centric global economy,” Kostin stressed. His words echoed statements made last month by President Vladimir Putin. In mid-September, while discussing measures for restructuring the country’s economy under Western sanctions, the Russian president called de-dollarization “an inevitable process.”

Russia approved a plan for the de-dollarization of the domestic economy back in 2018. A package of measures was introduced aimed at speeding up the process, with the goal of implementing the steps within six years. However, following the unprecedented economic sanctions imposed on Russia in the wake of its military operation in Ukraine, Moscow accelerated the process of moving away from what it calls the “compromised” dollar and euro. A ruble-based payment scheme for gas exports was implemented and national currencies started being used in settling Russia’s foreign trade with its trading partners.

Read more …

We all wanted Turkey to gain influence, right?!

• Erdogan: Turkiye Will Ensure Distribution Of Russian Gas To Europe (Az.)

Ankara, through the Turkish Stream gas pipeline, will ensure the distribution of Russian gas to Europe, Turkish President Recep Tayyip Erdogan told members of the ruling Justice and Development Party in Ankara, Report informs, citing Anadolu. “As a result of our negotiations with Russia, we will ensure the distribution of natural gas from Russia to Europe through the Turkish Stream,” Erdogan said. Earlier, the presidents of Russia and Turkiye instructed to work out in detail and quickly the issue of creating a gas hub in Turkiye, through which, in particular, the Russian Federation could move gas transit from the Nord Streams to the Black Sea region and Turkiye. During a speech to members of the ruling party, Erdogan also touched upon the country’s success in the field of energy, noting that Turkiye had discovered a field in the Black Sea with gas reserves of 540 billion cubic meters.

Read more …

“..Mikhelson suggested that the upcoming winter will be the easiest of the next three..”

• Russian Gas Supplies To EU Almost Halved – Novatek CEO (RT)

Russian gas supplies to the EU dropped by almost 50% since May, while exports to Japan and South Korea remained at about the same level as in 2021, the CEO of Novatek, Russia’s second largest gas producer, said on Thursday. “Russian supplies to Europe decreased by nearly 50 billion cubic meters of gas (bcm) in the past four-five months. As of October 1, the slump has reached 47%,” CEO Leonid Mikhelson said at the Eurasian Economic Forum in Baku, adding that the EU has almost replenished the shortfall by boosting LNG consumption by 65%. According to his estimates, the EU has received a total of 43bcm in additional volumes of gas via its LNG terminals, with 29bcm arriving from the US.


Mikhelson suggested that the upcoming winter will be the easiest of the next three, given that the bloc has managed to build up its gas stocks. However, he warned that with restored demand in China, the global economy may need about 60-70 million tons of LNG in the next two years to offset reduced pipeline gas supplies. Mikhelson also pointed to the lack of new major projects until 2026. In his view, global GDP will struggle to grow amid skyrocketing energy prices, and the only way to rein in the inflation and stabilize the markets is to beef up investment in new large-scale energy projects. And this, according to Mikhelson, is only possible with international cooperation.

Read more …

” This is not progress, but enslavement, mixing economies to a primitive level..”

• Putin Explains Western Economic Model (RT)

As soon as any market is opened for certain goods, the West seizes it along with all the resources, pushing away local manufacturers, according to Russian President Vladimir Putin. “They build relationships this way – markets and resources are captured, countries are deprived of their technological, scientific potential. This is not progress, but enslavement, mixing economies to a primitive level,” he stated on Thursday at a plenary meeting of the Valdai Discussion Club. According to the Russian leader, Western countries lay claim to all the resources of mankind as they aim “to strengthen their unconditional dominance in the world economy and politics.”


On the topic of world trade, Putin said the beneficiaries of this should be the majority, not the super-rich corporations. “Together everyone will gain more than individually,” the president said. He also criticized Western companies who are leaving the Russian market and supposedly selling their entire businesses “for merely one ruble.” They are doing this while whispering in the ear of their management: “we will be back soon,” Putin added.

Read more …

“It is the legitimate right of China and Russia to realize their own development and revitalization, which fully conforms to the development trend of the times..”

• China Will Support Russia In ‘Overcoming Difficulties’ – Wang (RT)

China has pledged to support Russia as it faces the combined power of the West, Foreign Minister Wang Yi reportedly told his Russian counterpart Sergey Lavrov during a phone conversation on Thursday, in which the two officials vowed to back each other in their geopolitical endeavors. Beijing will “firmly support the Russian side,” assisting President Vladimir Putin’s efforts to “unite and lead the Russian people to overcome difficulties and eliminate disturbances,” as well as realize “strategic development goals” to bolster Russia’s status as a major power on the international stage, according to the readout posted by the Chinese Ministry of Foreign Affairs.

“It is the legitimate right of China and Russia to realize their own development and revitalization, which fully conforms to the development trend of the times,”said Beijing’s press release. “Any attempt to block the progress of China and Russia will never succeed.” The top diplomats reaffirmed their “mutual trust and firm support” and vowed to work together to take both of their countries to the next level in such a way that would not only benefit both nations but “provide more stability to the turbulent world.” Lavrov also congratulated Xi Jinping on his recent reelection as general secretary of the Chinese Communist Party.

According the Russian Foreign Ministry, Lavrov thanked Beijing for supporting Russia’s efforts to achieve a “fair settlement of the situation around Ukraine” and derail Kiev’s alleged plans to set off a weapon of mass destruction in a false-flag provocation that could be used to demand more pressure on Moscow and additional military aid from the West. Russian Defense Minister Sergey Shoigu has been contacting his counterparts in the US, UK, France, Turkey, India and China about the possible Ukrainian provocation this week. The top diplomats of the US, UK, and France issued a joint statement on Monday rejecting Moscow’s claims as “transparently false allegations,”however. Their Ukrainian counterpart Dmitry Kuleba also denied the accusations and blamed Moscow for waging a disinformation campaign that “might be aimed at creating a pretext for a false flag operation.”

Read more …

Not a new idea, but it gained urgency.

• Russia Suggests Alternative To Suez Canal (RT)

The North-South corridor could become a safe substitute for the Suez Canal, Russia’s Deputy Prime Minister Andrey Belousov said on Friday, adding that he expects the volume of Russian cargo via this route to double by 2030. Speaking at the Eurasian Economic Forum, he noted that the International North South Transport Corridor (INSTC) and other alternative routes are gaining importance due to “global shifts of world markets” to China, South-East Asia and the Persian Gulf. Existing transport infrastructure which has been historically focused on the “East-West horizon ceases to meet global trends,” according to the Deputy premier, while the “North-South route may become a real competitor to the Suez Canal.” The route is currently the only deep-sea trade artery which connects Europe and Asia, and such “monopolarity” poses risks to the global economy, the official said.

He recalled an incident in 2021 when a container ship became stuck in the Suez Canal, triggering knock-on effects on global trade.The INSTC is a 7,200-kilometer multi-mode transit system that connects ship, rail, and road routes for moving cargo between India, Iran, Azerbaijan, Russia, Central Asia, and Europe. Experts say the route could cut costs by about 50% and save up to 20 days of travel time. In an effort to build up new logistics chains and make the route viable, Russia has proposed establishing an international operator for the North-South corridor along with Iran and Azerbaijan, the minister said. The construction of the INSTC began in the early 2000s, but developing it further has taken on a new importance in light of Western sanctions, which have forced Russia to shift its trade flows from Europe to Asia and the Middle East.

Read more …

”If NATO desires to fortify Odessa against the Russian advance, or use Odessa as a base to engage Russian forces near Nikolaev, they have a serious logistical problem.”

• NATO Set To Attack Tiraspol? (Sant)

Many years ago I was an officer in the National Guard sister Brigade to the 101st. Both Brigades are “air assault light infantry,” which was developed in the Vietnam War with the 7th Air Cavalry Division. “We Were Soldiers Once and Young,” tells that story. Though the 101st is called “airborne” in reference to its World War II days, today its soldiers are not trained to jump out of airplanes; the 82nd Airborne Division does that. The 101st deploys using UH-60 Blackhawk helicopters. Each division in the brigade has an aviation battalion with three companies of Blackhawk helicopters. Their primary combat mission is to secure a bridgehead. When deploying, an air assault infantry battalion goes to a designated pickup zone, and a company of Blackhawks comes in to ferry them to the landing zone.

Although they are trained to rappel out of the helicopters in a hot Landing Zone, in practice the helicopters usually land, and the troops jump out. It is much faster and safer. Two minutes later the chopper is back in the air and goes back for another squad at the pickup zone. Thus it might take the better part of an hour with two or three round trips to move an entire infantry battalion from the PZ to the LZ, longer if the distance is longer. While an air assault infantry brigade can move 105 mm light artillery pieces via helicopter, the main supply and logistics assets of the brigade must follow the main force on the ground in trucks. Therefore, unlike the 82nd Airborne Division, or the Rangers, both of which are designed to jump into areas far behind enemy lines, an air assault brigade like the 101st is limited in how far it can leapfrog ahead of its support assets.

If NATO desires to fortify Odessa against the Russian advance, or use Odessa as a base to engage Russian forces near Nikolaev, they have a serious logistical problem. Supply lines from Poland on main Ukrainian highways or railroads must travel 700 kilometers to reach Odessa. The shortest supply lines to Odessa for NATO would be from Romania, which has two segments of border with Ukraine. However, the best paved route would be through Moldova, which is not a member of NATO. Romania has state of the art NATO air defense batteries which can cover most of the route to Odesssa. Therefore, assuming they are effective against Russian cruise missiles, which may be a bad assumption, it would be safer to supply forces in Odessa from Romania than from Poland.

Read more …

Video transcript. Konstantin Sivkov (Navy Captain 1st Rank, retired) holds a doctorate of military sciences and is the deputy president of the Russian Academy of Missile and Artillery Sciences.

• Nuclear blackmail. Escalation scenarios – Konstantin Sivkov (Saker)

“Only the West needs nuclear weapons. Only the west. And the West needs them for the following reasons. Because winter is coming. Western sanctions brought not just .. not led to the collapse of the Russian economy, but on the contrary put on the brink of collapse the European economy. And in these conditions the Europeans … if Russia persists through the winter. Now, when the “greenery” withers and falls, cold weather comes, winter .. Ukrainians will have it much worse than now. It will be easier for us to attack and act. Therefore, under these conditions, Western elites are in a position where they are about to die as result of the revolution, actually, inside countries, their own countries. This is brewing there.

Especially against the backdrop of cold weather this will be inevitable, in the apartments, in the houses, when problems begin with food .. with food supplies, with other goods. When their factories stop, completely shut down as the result of the lack of gas shortage, or rather its absense. And they – yes, they need a nuclear war now. Because they have not been able to mobilize their peoples to go to war, yet. A regular war. But to unleash a nuclear war and against the backdrop of a nuclear war and the resulting threats of radioactive contamination to wide, large areas on the territory of Ukraine, on the territory of Poland, Germany, other countries in Europe and then mobilize the European population to a war against Russia, this may well be part of their plan.

Therefore, they are extremely interested in doing this. Now, a natural scenario can be suggested to explain how this may be realized and why they scream [in the media]. Because Russia will use nuclear weapons. There are two clear options here. The first option is that .. the Americans, the americans themselves fire a missile MGM-140 ATACMS in the direction from East to West, in this direction [showing with his hand] – from East to West, from one territory controlled by the Armed Forces of Ukraine to a nuclear power plant located in the west of Ukraine, with it being destroyed. ATACMS missile. Not one, but several ATACMS missiles. As a result, a new Chernobyl is created .. Chernobyl is possible, by the way, Chernobyl might be hit. Cannot be completely ruled out. After that, Russia is blamed for this.”

Read more …

Due to the lack of sufficient cobalt, lithium, nickel, Europe (and California) will resemble Cuba with tons of old internal combustion cars.. And bicycles, mopeds.

• EU Approves Gasoline Car Ban In 2035 (RT)

The EU has reached an agreement that would oblige carmakers to achieve a 100% cut in CO2 emissions by 2035. The measure would effectively ban the sale of new petrol and diesel-fueled cars in the bloc starting from that year. The deal was struck on Thursday between negotiators from EU member states, the European Parliament, and the European Commission, which all must agree when a new law is to be adopted within the EU.“The European Commission welcomes the agreement reached last night by the European Parliament and Council ensuring all new cars and vans registered in Europe will be zero-emission by 2035,” the Commission said in a press release following the deal’s announcement.


The agreement also included a 55% cut in CO2 emissions for new cars sold from 2030 against 2021 levels, which exceeds the existing target of a 37.5% reduction. EU climate policy chief Frans Timmermans said the agreement is a signal to all that “Europe is embracing the shift to zero-emission mobility.” According to the press release, the new regulation aims “to make the EU’s transport system more sustainable, provide cleaner air for Europeans, and marks an important step in delivering the European Green Deal.” The agreement is provisionary and now requires formal adoption by both the European Parliament and the EU Council. The timeframe for this is so far unclear.

Read more …

The German president is an absolute airhead. And that is scary. Telling his people they have no choice but to freeze and fight.

• World Is Moving Into Phase Of Confrontation – German President (Az.)

The world is moving into a phase of confrontation, and harder years lie ahead for Germany, President Frank-Walter Steinmeier said on Friday, according to Anadolu Agency. In a major speech, Steinmeier warned about the severe consequences of the Russia-Ukraine war, underlining that Germany will have to face new challenges, and calling for public solidarity in the face of ongoing crises. “The 24th of February was a turning point in history,” Steinmeier said, referring to the start of Russia’s war on Ukraine, adding that the war ended an era of peace and stability which Germans profited from greatly and reduced the European security order to “rubble.” “With his imperial obsession, the Russian president has broken international law, challenged borders, committed land grabs. The Russian attack is an attack on all the lessons the world had learned from the two world wars,” said Steinmeier.


Steinmeier said the consequences of the war, new security threats, the energy crisis, and inflation have greatly challenged Germany’s successful economic model. “I believe many of the concerns are valid. We are experiencing the deepest crisis since the reunification of Germany,” he stressed.Steinmeier underlined that Germany will cut its dependency on Russian gas and oil, and adapt to new challenges by taking the necessary steps, but will not end its efforts to promote international dialogue and cooperation.“A new bloc confrontation, a division of the world into ‘us against them’ is not in our interest,” he stressed.“Yes, we must reduce our vulnerability, reduce one-sided dependencies. But that doesn’t mean less networking with the world, but more,” he added.

Read more …

This is what you call a tirade.

• They Will Blame WWIII On Germany Too (Pattberg)

Mr. Scholz will humiliate Germany in China so much, will offend the Chinese commentators so much, that all hell will break loose and hatred and bitter rivalry ensues. Hundreds of millions will suffer from lost trade, war, and poverty. Who gives. Scholzes don’t care if all goes to pot. As the Buddhists say: All life is suffering. Say the Germans: Done! Displacement, violence, and misery all equal eastward expansion, remember? If you are German, and you are already dead in 80 years, why not start World War III now while you can? The Americans arranged it, but they will probably say the Germans did it, because “Germany started World War I and II AND III”… is just the better story. The Germans are the perfect closet assholes because they have passion but no compassion. They lack empathy.

This lack of empathy passed on from generation to generation of surviving Huns and became the genealogy of Evil. Just read the archaeologists of Evil, from Hannah Arendt to Andrew Lobaczewski. The Germans are the world’s main source of Evil. Their own leaders say this much about themselves. Said former President of Germany, Joachim Gauck: “I feel ashamed to be a German” or “I am suspicious about the German language… because it breeds pride, hatred, and bestiality,” and… wait for it: “I hate and despise this country!” This is real, folks. It is what it is. We must deal with these murderous lunatics before they murder everyone or themselves. Evil oozes from their huge foreheads, streaking their oily white skin.

And if everyone says you are part of the historic Evil, you will probably turn out to be an asshole, just like Gauck and Scholz and the rest of them. Evil goes with German as the Devil goes with Dr. Faust. There is no Mao or Stalin in this world that could have existed without German Hegel, Marx, and Nietzsche, verstehst Du?! The coming War will be blamed on the assholes in the closet. It is too awesome an award to be handed to the Russians, Chinese, or the Iews. “Germany did it once again,” will they all sing, the voices of doom. Or they’ll clap “The Death of Europe!” and all its rotten brains. Either way, the Germans will be the peons, the scapegoats, the blame race.

World War I and II kind of won our attention, remember? Blood, soil, women, and resources. If you are a small militant nation, you can always destroy more than you can build. World War III is the most progressive thing that could ever happen to Berlin and Europe. The world would be indifferent if China had never existed. But if the Germans had never existed, we would never have had Charles Bukowski, Klaus Schwab, or Donald Trump. Beijing knows that Evil always triumphs for the Europeans. This law of History must be obeyed. My God, what have the Europeans done! Why would China even cater to forgetful Mr. Scholz in Beijing where Germans murdered Chinamen in the past? Why would China tolerate another military German-Japan axis? Because Mr. Xi is wise and will go with the flow of History. That much attitude he shares with most world leaders: When World War III breaks out, it will be blamed in any way possible on Germany. You better believe it.

Read more …

“..it doesn’t have to resolve on the side of high-tech tyranny and super-centralized global governance by elitist maniacs. In fact, it can’t.”

• An Election, If You Can Hold It (Kunstler)

Is there some penalty for running a shadow government, perhaps something in the sedition or treason folders of federal law? The degree of malign policy coordination throughout Western Civ also suggests that outside actors exert some heavy influence on our affairs. Is Mr. Obama running “Joe Biden” according to a WEF playbook, as appears to be the case with WEFfer implants Justin Trudeau of Canada and Jacinda Ardern of New Zealand? It would help explain how so many measures and actions outside our national interest have played out lately — the Gestapo-ization of the FBI, the overt censorship, the wide-open border, draining the strategic petroleum reserve, the drag queen shindigs, the foolish effort to “weaken” Russia in Ukraine, the climate change hysteria, the fiscal idiocy, and everything about-and-around Covid-19.

Of course, the rule-of-law has become a pitifully squishy thing in our time. Nobody is accountable for anything these days. The federal agencies can act however they like in the way of persecuting their political opponents, or inflicting immense harm on the public — like the CDC, FDA, and other public health agencies insanely pushing deadly mRNA vaccines on the public, despite massive evidence that the shots have killed and disabled hundreds of thousands. It’s likely that we will see aggressive hearings into all sorts or government misconduct come January, and it is important to determine who did what to drive America so badly off the rails, but that won’t mitigate the pitfalls and quandaries ahead. There is a re-set underway for sure with every teeter of industrial civilization, but it doesn’t have to resolve on the side of high-tech tyranny and super-centralized global governance by elitist maniacs. In fact, it can’t.

The bottlenecks of resources — energy, commodities, metals, all material things — plus the growing scarcity of real capital (as in representations of genuine wealth), guarantee that nothing organized at the gigantic scale will be able to continue — certainly not any global political administration. The WEF is a fantasy factory; all it can really produce is chaos and misery. Many national governments may not survive the great discontinuities ahead. Everything we do has to get finer, smaller in scale, and more local. Many, maybe most, of our high-tech systems will be crippled by energy shortages and supply line breakdowns. The business models for everything — from the oil industry to commercial aviation to running mega-cities — no longer pencil out. And as economist Herb Stein observed years ago: things that can’t go on, stop.

Read more …

A little man trying to puff up his little chest.

• EU Commissioner To Elon Musk: Twitter Will Play By Our Rules (Pol.eu)

Elon Musk now owns Twitter but the EU is watching carefully lest the self-styled “free speech absolutist” turn the social media site into a platform for hate speech. After Musk tweeted “the bird is freed,” Internal Market Commissioner Thierry Breton responded with a wave emoji and “In Europe, the bird will fly by our rules.” Musk’s takeover — reported Thursday night — could have huge implications for the future of the site, especially if former U.S. President Donald Trump is allowed back on the platform, and if Musk loosens the rules to prevent the spread of hate speech and misinformation.


Musk promised Thursday that the platform would not become “a free-for-all hellscape where anything can be said with no consequences.” Breton’s tweet was accompanied by the hashtag DSA, a reference to Digital Services Act — which requires providers of digital services to take swift action against illegal online content, such as hate speech. The commissioner also tweeted a video showing him and Elon Musk in May after discussing the Digital Services Act. In the clip, Breton tells Musk “I was happy to … explain to you the DSA, a new regulation in Europe ” and Musk replies: “I agree with everything you said.” “That’s what he said,” Breton tweeted Friday.

Read more …

“Today on Twitter feels like the last evening in a Berlin nightclub at the twilight of Weimar Germany.”

• “The Gates of Hell Opened” As Musk Takes Over Twitter (Turley)

Led by President Joe Biden, Democratic leaders and media figures have demanded corporate censorship and even state censorship to curtail opposing views on issues ranging from climate change to election integrity to public health to gender identity. The Washington Post’s Max Boot, for example, declared, “For democracy to survive, we need more content moderation, not less.” Many of those same figures are now apoplectic at the thought that others may be able to express dissenting views on subjects ranging from climate change to election regulations to gender identity. Journalist Molly Jong-Fast asked, “Can someone make a new Twitter or is this a very stupid question?” In other words, a journalist wants to recreate a social media platform where others can be routinely silenced.

The answer is simple: Facebook . . . and virtually every other social media platform. The freak out from the Musk-phobic was triggered by the prospect of a single social media company offering greater free speech protections. Just one. However, they know that the effort to control political and social speech will be lost if people have an alternative. These companies are only able to sell censorship because they have largely been able to bar free speech competitors. Now there may be an alternative. The panic over free speech breaking out on a single social media site is shared by journalism and law professors. CUNY journalism professor Jeff Jarvis wrote “The sun is dark” and “This is an emergency! Twitter is to be taken over by the evil Sith lord.” He previously wrote, after news of the likely purchase by Musk, that “Today on Twitter feels like the last evening in a Berlin nightclub at the twilight of Weimar Germany.”

He is not alone. We have been discussing the rise of advocacy journalism and the rejection of objectivity in journalism schools. Writers, editors, commentators, and academics have embraced rising calls for censorship and speech controls, including President-elect Joe Biden and his key advisers. This movement includes academics rejecting the very concept of objectivity in journalism in favor of open advocacy. Columbia Journalism Dean and New Yorker writer Steve Coll decried how the First Amendment right to freedom of speech was being “weaponized” to protect disinformation. In an interview with The Stanford Daily, Stanford journalism professor, Ted Glasser, insisted that journalism needed to “free itself from this notion of objectivity to develop a sense of social justice.”

He rejected the notion that the journalism is based on objectivity and said that he views “journalists as activists because journalism at its best — and indeed history at its best — is all about morality.” Thus, “Journalists need to be overt and candid advocates for social justice, and it’s hard to do that under the constraints of objectivity.” Likewise, in an article published in The Atlantic by Harvard law professor Jack Goldsmith and University of Arizona law professor Andrew Keane Woods called for Chinese-style censorship of the internet, stating that “in the great debate of the past two decades about freedom versus control of the network, China was largely right and the United States was largely wrong.”

Read more …

“..CS’s shares plunged a whopping 18.6% yesterday — their biggest daily fall ever.”

The too big to fail banks will be bailed out by central banks, governments and finally each other until that is no longer viable. And then think dominoes.

• It Looks Like Credit Suisse Could Be Failing (NC)

Credit Suisse is one of 11 European lenders on the Financial Stability Board’s list of Global Systemically Important Banks (G-SIBs). In other words, it is officially too big to fail, but it is teetering. Yesterday it disclosed a whopping third-quarter loss of $4 billion — almost ten times average estimates of $416 million. The loss was largely blamed on a reassessment of so-called deferred tax assets (DTA), which in turn was apparently a result of the company’s strategic review.* It is Credit Suisse’s fourth quarterly net loss in a row. So far this year, it has posted $5.94 billion of losses. Net revenue, at $3.8 billion, was up marginally on the last quarter but was down 30% from Q3-2021. Over the past ten quarters Credit Suisse has only managed to muster one quarter of actual year-on-year revenue growth. The value of its asset base has also shrunk drastically, from $937 billion in December 2020 to $707 billion today.

To steady the ship, the bank has presented a new strategic overhaul. It is the third attempt in recent years by successive CEOs to turn the bank around. At the core of the overhaul is a plan to raise $4 billion of fresh capital. The good news for CS is that it has already found a major backer: Saudi Arabia’s largest commercial bank, Saudi National Bank (SNB), which has pledged up to $1.52 billion of capital. That will give the SNB 9.9% of outstanding CS shares. Majority controlled by the House of Saud, the SNB (not to be confused with the Swiss National Bank) has also expressed an interest in participating in future capital measures of Credit Suisse to support the establishment of an independent investment bank in Saudi Arabia.

If nothing else, SNB’s participation will make for interesting boardroom drama given the sovereign wealth fund of Qatar, a country that is locked in a diplomatic conflict with Saudi Arabia, has a 5% stake in the Swiss lender. The question now is whether or now CS will be able to secure the remaining $2.5 billion. The capital raise is already going to dilute existing CS shareholders, many of whom are miffed at having already poured $12.2 billion of additional capital into the lender — more than its current market value — since 2015. That was one reason why CS’s shares plunged a whopping 18.6% yesterday — their biggest daily fall ever. Those shares are now down an eye-watering 57% so far this year and over 95% since 2008.

Read more …

Pretty brilliant video. And a new angle for most.

“..5, 6, 7, 8, 9 years until you have a product pure enough..”

• If You Got the Covid Shot And Aren’t Injured, This May Be Why – Ryan Cole (BLN)

Pathologist Dr. Ryan Cole, MD, explains why many vaccinated were lucky not to get injured by the dangerous Covid-19 mRNA shots during a panel discussion at the Better Way Conference in Vienna, Austria, September 17, 2022. Dr. Cole’s explanation came during a stellar panel discussion with other pathologists Drs. Sucharit Bhakdi, Arne Burkhardt and Andreas Sönnichsen, all speaking on the topic of Covid-19 “vaccine” injuries. Each participant gave an individual presentation before the panel discussion.

Read more …

 

 

 

 

 

Zuckerberg lost over $100 billion in the past year. But at least Paul Pelosi is being treated in the Zuckerberg hospital in SF.
Lots of people don’t believe the Pelosi attack story. Don’t they have security there for the 3rd in line for US presidency, who’s worth 100s of millions? How can a guy wearing no pants, swinging a hammer, just walk in? Was Paul Pelosi also wearing no pants, and swinging a hammer?

 

 

Died Suddenly

 

 

 

 

Rogan Musk Alex Jones

 

 

 

 

Puppy butterfly
https://twitter.com/i/status/1585777213416218624

 

 

 

 

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

 

 

 

 

 

Debt Rattle April 8 2022

Apr 082022
 
 April 8, 2022  Posted by at 8:55 am Finance Tagged with: , , , , , , , , , , ,  60 Responses »


Pablo Picasso Femme nue couchée (Marie-Thérèse Walter) 1932

 

• Ukraine Foreign Minister Demands More “Weapons, Weapons, Weapons” From NATO (ZH)
• The True Importance Of The Bucha False Flag (Saker)
• Israel, Russia Clash Over Ukraine (Lauria)
• Azov Fighter Video Overshadows Zelenskyy’s Address To Greek Lawmakers (R.)
• Ukraine War Frenzy Proves: It’s Still John McCain’s GOP (Tracey)
• US Air Force Delays Hypersonic Missile Program Over “Flight Test Anomalies” (ZH)
• The Dollar Devours the Euro (Michael Hudson)
• Despite Sanctions The Ruble Is Stronger Than Before The War (OffG)
• Sit Back And Watch Europe Commit Suicide (Escobar)
• Two-Star General Warns Hunter Biden Laptop Witness About His Safety (CTH)
• BLMs LA Mansion Bought For 3.1M Sold 6 Days Later For 5.8M (DM)
• Peter Thiel Blasts Buffett, Dimon, & Fink As “Finance Gerontocracy” (ZH)
• The Spike Protein Is The “Amyloid” Being Deposited (Chesnut)
• Nearly $300 Million To Wokify The Canadian Military (CS)
• Priti Patel Part Of CIA-linked Lobby Group With Husband Of Assange Judge (DUK)

 

 

 

 

Disinformation

 

 

Wow, this sounds stupid

 

 

“The more weapons we get and the sooner they arrive in Ukraine, the more human lives will be saved.”

Uh, no.

• Ukraine Foreign Minister Demands More “Weapons, Weapons, Weapons” From NATO (ZH)

“Weapons, weapons, weapons” is what Ukraine’s government is still demanding of NATO countries, even after the Biden-approved $800 million package last month. Foreign Minister Dmytro Kuleba issued the plea after meeting with NATO Secretary-General Jens Stoltenberg in Brussels, stating on Twitter that the “three most important things” for Ukrainians are “weapons, weapons, weapons.” “Met with Secretary General Jens Stoltenberg at NATO HQ in Brussels. I came here today to discuss three most important things: weapons, weapons, and weapons,” Kuleba wrote. “Ukraine’s urgent needs, the sustainability of supplies, and long-term solutions which will help Ukraine to prevail,” he added.

Already the Pentagon has agreed to send more Javelin anti-armor systems, also as Stinger anti-aircraft missiles are being supplied, which Moscow sees as a huge provocation, with the war entering its sixth week. During a press conference in Brussels, Kuleba said his agenda in meeting with NATO leaders remains “simple”… “We know how to fight. We know how to win. But without sustainable and sufficient supplies requested by Ukraine, these wins will be accompanied by enormous sacrifices,” Kuleba said. “The more weapons we get and the sooner they arrive in Ukraine, the more human lives will be saved.”

Previously, CNN had documented that Kiev is increasingly pushing Washington for more advanced battlefield weapons, especially to take out Russia’s superior tanks and aircraft: The Defense Department plans to accelerate production of Stinger anti-aircraft missiles and Javelin anti-tank missiles so it can refill its own depleted stocks as it continues to send the vital systems to Ukrainian forces fighting the Russian invasion, according to defense officials. Ukraine wants 500 Javelin anti-tank missiles and 500 Stinger anti-aircraft missiles delivered from the US daily, according to a recent military assistance wish list. CNN viewed the document that details the items Ukraine believes it needs from the US.

Read more …

“Russia needs to flush the EU down her “mental toilet” and only deal with sovereign countries which have retained enough agency to defend their own interests.”

• The True Importance Of The Bucha False Flag (Saker)

[..] the leaders of the Empire of Hate and Lies have fully opened the “Hate and Lies” valve and it appears that they are seriously “losing it”. Remember how in the Skripal and MH-17 cases EU countries joined in the sanctions out of “solidarity”? I personally would call that cowardice and submissiveness, but “solidarity” works too. Well, the Eurolemmings have solidarized themselves into their own grave and now there is no undoing what they did to themselves. From the Russian point of view, it is rather straightforward: Russia tried to encourage EU countries to use their own judgment and act in their own interests.

It is now quite clear that as long as they get to brown-nose Uncle Shmuel the Eurolemmings are quite content with their fate. Russia needs to flush the EU down her “mental toilet” and only deal with sovereign countries which have retained enough agency to defend their own interests. In the EU that means Hungary and, to a much lesser degree, Serbia (not the people, of course, but the government which remains subservient to the Eurolemmings). The Bucha massacre itself will go down Zone A’s collective memory hole, that’s where all the previous false flags of the Empire of Hate and Lies have gone. Once a demonization operation has served its use, it can be forgotten.

So what are the purposes of the Bucha false flag: • Change the narrative from the (non-existing) Ukronazi “victories” to “stop the Russian atrocities” • Obfuscate the DELUGE of evidence (witnesses and forensic) showing that it was the Ukronazis who engaged in mass atrocities in Mariupol. Remember – Ukrainian victims are sacred, Russian victims are simply irrelevant. In fact, a Russian CAN NOT be a victim unless he is anti-Putin, then it’s okay. • To condition (I mean that in the psychological sense) the TV watching serfs of the Empire of Lies and Hate to hate anything Russian with a searing, explosive, hated. • Declare that Putin is now the “New Hitler” (though Putin has been Hitler pretty much since 2000, it’s just that now he is even MORE Hitler than before) and Russia some kind of broken, poor, and otherwise horrible Mordor.

• Use this pretext to try to eject Russia and Russians from as many locations and organizations on the planet as possible. That means all of Zone A for sure, but also plenty of locations and organizations in Zone B where the comprador ruling set the tone and don’t give a damn about their own people and country. • Try to scare Putin with the same fate as Gaddafi, Milosevic, and Hussein who were all demonized and later murdered. • If you think about it, I think that it is fair to say that these are all clear signs that the Empire of Hate and Lies has now declared total war on Russia, just short of overtly actually attacking Russian forces or Russia, of course. In fact, Russia and the Empire of Hate and Lies have been at war since at least 2013..

Read more …

“Serious politicians, especially at such a high level as Minister Lapid, have no right to talk idly..”

• Israel, Russia Clash Over Ukraine (Lauria)

From the start of Russia’s invasion of Ukraine Israel has refused to join the West’s economic war against Moscow, maintaining a neutral stance that as positioned it as a possible broker to end the conflict. But all that appears to have changed with remarks by Israel’s foreign minister in a Twitter post on Sunday, the day the massacre at Bucha was revealed and before any investigation could be conducted. Foreign Minister Yair Lapid wrote: “It is impossible to remain indifferent in the face of the horrific images from the city of Bucha near Kyiv, from after the Russian army left. Intentionally harming a civilian population is a war crime and I strongly condemn it.” Israel’s ambassador to Ukraine also implied that Russia had committed a war crime. “Deeply shocked by the photos from #Bucha. Killing of civilians is a war crime and cannot be justified,” Ambassador Michael Brodsky tweeted on Sunday.

Earlier, on March 13, during a visit to Romania, Lapid had tweeted: “… like Romania, Israel condemns the Russian invasion of Ukraine. It’s without justification, and we call on Russia to stop its firing and attacks, and to resolve this conflict around the negotiating table.” The Israeli foreign ministry tried to distance itself from the ambassador’s remarks. Haaretz reported: “Asked if the Foreign Ministry’s official position was that Russia had committed war crimes in Ukraine, a spokesman replied: ‘No. It’s a tweet by the ambassador regarding the photos. He didn’t blame Russia.’” Prime Minister Naftali Bennett, who flew to Moscow on March 5 to meet with President Vladimir Putin (and was condemned for it), has made no comment about the Bucha incident.

Israel is trying to maintain a balancing act between Moscow and Washington, which cannot be pleased with Israel not joining the economic war. Russia and Israel have long maintained good relations, with Moscow even allowing Israel to conduct bombing raids on Syria. But years of goodwill have now been put on the line with Foreign Minister Lapid’s remarks. And now Russia has struck back. Sergey Ivanov, head of the department of diplomacy and consular service at the Foreign Ministry’s Diplomatic Academy, wrote a scathing critique of Israel on Wednesday, posted on the ministry’s Telegram page. It holds nothing back, openly condemning Israel for a variety of sins, including its treatment of the Palestinians.

Ivanov wrote that many Western journalists and political analysts have opportunistically become overnight “Ukraine experts” just as Western politicians, such as Lapid, are making rash statements to boost their popularity. “Serious politicians, especially at such a high level as Minister Lapid, have no right to talk idly,” Ivanov warned. “They should be aware of the possible consequences of what they say, including with regard to relations with Russia.”

Read more …

Bring your nazi to work. Just how stupid are these people?

“Ukraine’s Zelensky faces criticism in Greece after bringing a Neo Nazi member of the Azov battalion alongside him during his address to the Greek Parliament.”

• Azov Fighter Video Overshadows Zelenskyy’s Address To Greek Lawmakers (R.)

Ukrainian President Volodomyr Zelenskyy’s address to the Greek parliament on Thursday caused an outrage from opposition parties after a man who identified himself as an ethnic Greek member of Ukraine’s ultranationalist Azov battalion appeared on a video. Zelenskyy spoke about the destruction of the Russian-besieged Ukrainian port of Mariupol – home to thousands of ethnic Greeks – and appealed to Athens for help. During his speech he showed a video with a message by a man who identified himself as a member of the Azov battalion, a far-right militia now part of Ukraine’s National Guard. “I address you, as a Greek by origin. I am Mikhail, my grandfather fought against the Nazis… I participate in the defence of Ukraine through the Azov Battalion,” he said.

Zelenskyy, who was invited to address the Greek parliament by conservative Prime Minister Kyriakos Mitsotakis, received a standing ovation from lawmakers present in the room. But the video caused a backlash on social media and an angry reaction from leftist parties. Shortly after the speech, the head of the leftist SYRIZA party Alexis Tsipras said the incident was a provocation. “Solidarity with the Ukrainian people is a given. But the Nazis can not have a say in parliament,” he tweeted. A Greek government spokesman responded that the message of a member of the Azov Battalion was “mistaken and inappropriate.”

Western countries say Moscow’s invasion, the biggest assault on a European country since World War Two, was entirely unprovoked. Russia says it is carrying out a “special operation” to disarm and “denazify” its neighbors. Ukraine’s embassy in Athens said the Azov regiment, set up as a far right group in 2014, has been reformed and integrated into the National Guard of Ukraine. “For many years Russia tried to ‘plant’ into Greek minds the myth that “Azov” Regiment is a paramilitary independent unit operating in Mariupol,” it said.

Read more …

Given the average age, no wonder that things move very slowly.

• Ukraine War Frenzy Proves: It’s Still John McCain’s GOP (Tracey)

“The senator from Kentucky is now working for Vladimir Putin,” fumed John McCain back in March 2017. His target: Rand Paul, who had committed the unforgivable offense of momentarily delaying the latest round of NATO expansion. Montenegro, a tiny country in southeastern Europe that most Americans have never heard of, was about to join the sprawling military alliance — and McCain was determined to see the final ratification ritual proceed with as little debate as possible. So he hurled the time-honored “working for Putin” accusation, and sure enough, Paul quickly withdrew his minor procedural objection. The glorious ascension of Montenegro to NATO membership status was thereby assured.

Since that episode, a lot has transpired regarding the public perception of McCain. He delighted liberals by feuding regularly with Donald Trump — even going so far as to denounce Trump for engaging in “disgraceful” and “pathetic” flattery of Putin. “No prior president has ever abased himself more abjectly before a tyrant,” McCain raged. He undermined Congressional Republicans’ legislative agenda during the brief window in Trump’s presidency when the party had unified control of government — famously delivering a dramatic thumbs-down gesture to derail GOP hopes of repealing Obamacare, as a chagrined Mitch McConnell watched powerlessly on.

McCain had returned to his most natural state. After annoying Democrats by running against Barack Obama in the 2008 election, and being surly about his defeat for some time afterwards, he had once again resumed playing the “maverick” role he so relished — reviled by “his own side,” and loved by the “other side.” His death in 2018 brought forth the most effusive display of state-sanctioned grief that any US political figure had received since Ronald Reagan died in 2004, with all the universal media adulation that entails. Trump’s exclusion from the funeral proceedings, at McCain’s posthumous direction, was just the icing on the cake. But nowadays, if you bring up McCain in certain GOP circles, it will often be claimed that his influence has mercifully dissipated. The Republican Party experienced a bonafide ideological upheaval under Trump, they’ll say, and the McCain worldview — defined mainly by his unwavering commitment to a hyper-interventionist US foreign policy — has since fallen starkly out of favor.

Read more …

“Western countries have yet to field a hypersonic weapon while the old world order crumbles as a multipolar world emerges..”

• US Air Force Delays Hypersonic Missile Program Over “Flight Test Anomalies” (ZH)

While Russia launched hypersonic air-to-ground missiles during the invasion of Ukraine and China flew a hypersonic weapon around the world late last year, the US continues to fall behind the hypersonic curve as a new round of delays were announced by the US Air Force (USAF), according to Bloomberg. The AGM-183 Air-Launched Rapid Response Weapon (ARRW) was expected to be declared “early operational capability” by Sept. 30. However, according to a USAF statement, those timelines have been pushed back to the next fiscal year. ARRW, expected to be the Pentagon’s first hypersonic weapon, suffered three consecutive failed tests last year. ARRW’s latest hurdle was two upcoming ground-based booster motor tests by June 30.

But, it appears “due to recent flight test anomalies,” the missile test would be shifted out to as late as December with additional tests planned next fiscal year, according to the USAF statement. “The ARRW production decision remains event-driven and will occur after operational utility is demonstrated through successful system end-to-end flight tests,” the service continued. Lockheed-Martin’s ability to manufacture and deliver the new weapon appears to be a 2023 story. Western countries have yet to field a hypersonic weapon while the old world order crumbles as a multipolar world emerges, pushing Russia and China closer together. Perhaps that’s why President Biden is set to unveil a new trilateral security hypersonic pact with the UK and Australia to advance the development of hypersonic weapons.

On Wednesday, Republican Rep. Mike Rogers of Alabama sounded the alarm at the House Armed Services Committee hearing that China has “more troops, ships, and hypersonic missiles than the United States.” Republican Rep. Michael Turner of Ohio said the US needs to increase its hypersonic development.

Read more …

“..why not simply throw in the financial towel and adopt the U.S. dollar, like Ecuador, Somalia and the Turks and Caicos Islands?”

• The Dollar Devours the Euro (Michael Hudson)

European trade and investment prior to the War to Impose Sanctions had promised a rising mutual prosperity between Germany, France and other NATO countries vis-à-vis Russia and China. Russia was providing abundant energy at a competitive price, and this energy was to make a quantum leap with Nord Stream 2. Europe was to earn the foreign exchange to pay for this rising import trade by a combination of exporting more industrial manufactures to Russia and capital investment in developing the Russian economy, e.g. by German auto companies and financial investment. This bilateral trade and investment is now stopped – and will remain stopped for many, many years, given NATO’s confiscation of Russia’s foreign reserves kept in euros and British sterling, and the European Russophobia being fanned by U.S. propaganda media.

In its place, NATO countries will purchase U.S. LNG – but they will need to spend billions of dollars building sufficient port capacity, which may take until perhaps 2024. (Good luck until then.) The energy shortage will sharply raise the world price of gas and oil. NATO countries also will step up their purchases of arms from the U.S. military-industrial complex. The near-panic buying will also raise the price for arms. And food prices also will rise as a result of the desperate grain shortfalls resulting from a cessation of imports from Russia and Ukraine on the one hand, and the shortage of ammonia fertilizer made from gas. All three of these trade dynamics will strengthen the dollar vis-à-vis the euro. The question is, how will Europe balance its international payments with the United States?

What does it have to export that the U.S. economy will accept as its own protectionist interests gain influence, now that global free trade is dying quickly? The answer is, not much. So what will Europe do? I could make a modest proposal. Now that Europe has pretty much ceased to be a politically independent state, it is beginning to look more like Panama and Liberia – “flag of convenience” offshore banking centers that are not real “states” because they don’t issue their own currency, but use the U.S. dollar. Since the eurozone has been created with monetary handcuffs limiting its ability to create money to spend into the economy beyond the limit of 3 percent of GDP, why not simply throw in the financial towel and adopt the U.S. dollar, like Ecuador, Somalia and the Turks and Caicos Islands? That would give foreign investors security against currency depreciation in their rising trade with Europe and its export financing.

Read more …

“The price of oil is going up and the ruble is worth just as much as it was before the war.”

• Despite Sanctions The Ruble Is Stronger Than Before The War (OffG)

It’s official, as of right now the Russian ruble is worth more US dollars than before the invasion of Ukraine. On the 22nd of February this year, one US dollar would exchange for just over 79 rubles. As of the time of writing, it is now 78. The same is true of the British pound (around 108 rubles before, 102 now), and the Euro (88 rubles before, 84 now). Across the board, the ruble is stronger than before the war. So, how has this happened? Aren’t NATO, the EU and the rest of the “international community” meant to be crippling the Russian economy with biting sanctions? The media are claiming that the strength of the ruble “may be illusory” or that Russia has exploited a “loophole” in the sanctions and used “financial alchemy” to “rescue the ruble”.

Reminder: In 2014, when the west sanctioned Russia over the Crimean referendum, the ruble lost almost half its value. It recovered slightly in 2016, and has since stabilized, but has never come close to its pre-Crimean worth. So, presumably the earlier sanctions didn’t have a “loophole” in them, and/or the Russians either weren’t aware of this “financial alchemy” back then, or simply decided not to use it. Of course there is one key difference between 2014 and 2022 – the oil market. As we have written before, in 2014/15 the US and Saudi Arabia flooded the market with cheap oil and crashed the price. Russia (and Iran, and Venezuela) all suffered huge economic damage from this move.

But far from repeating this tactic, Saudi Arabia has increased their prices. The Western press claims that the US asked Saudi Arabia to increase oil production and they refused. They claim Saudi Arabia “sided with Russia”, and that they should be “punished”. Meanwhile, Turkey has just suspended the trial of the Saudi citizens alleged to have murdered journalist Jamal Khashoggi, a move that should please the Saudi government no end. The West seems as bad at “punishing” their misbehaved allies as they are at tanking the value of the Russia’s currency. To sum up – The price of oil is going up and the ruble is worth just as much as it was before the war.

Read more …

“..next winter energy bills packing a mean punch; products disappearing from supermarkets; holiday bookings almost frozen; Le Petit Roi Macron in France – maybe up to a nasty electoral surprise – announcing “food stamps like in WWII are possible”.

• Sit Back And Watch Europe Commit Suicide (Escobar)

The stunning spectacle of the EU committing slow motion hara-kiri is something for the ages. Like a cheap Kurosawa remake the movie is actually about the Empire of Lies-detonated demolition of the EU, complete with subsequent rerouting of some key Russian commodities exports to the US at the expense of the Europeans. It helps to have a 5th columnist actress strategically placed, in this case astonishingly incompetent European Commission head Ursula von der Lugen, with a brand new vociferous announcement of an extra sanctions package: Russian ships banned from EU ports; road transportation companies from Russia and Belarus prohibited from entering the EU; no more coal imports (over 4.4 billion euros a year).

That translates in practice into the Empire of Lies shaking down its wealthiest – Western – clients/puppets. Russia of course is too powerful militarily. The Empire badly needs some of its key exports – especially minerals. Mission Accomplished in this case amounts to nudging the EU into imposing more and more sanctions and willfully collapsing their national economies, allowing the US to scoop everything up. Cue to the coming catastrophic economic consequences felt by Europeans in their daily life (but not by the wealthiest 5%): inflation devouring salaries and savings; next winter energy bills packing a mean punch; products disappearing from supermarkets; holiday bookings almost frozen; Le Petit Roi Macron in France – maybe up to a nasty electoral surprise – announcing “food stamps like in WWII are possible”.

We have Germany facing the returning ghost of Weimar hyperinflation; BlackRock President Rob Kapito saying, in Texas, “for the first time, this generation is going to go into a store and not be able to get what they want”; farmers in Africa not able to afford fertilizer at all this year, reducing agricultural production by an amount capable of feeding 100 million people. Zoltan Poszar, former NY Fed and US Treasury guru, current Credit Suisse grand vizir, has been on a streak, stressing how commodity reserves – and here Russia is unrivaled – will be an essential feature of what he calls Bretton Woods III (yet, in fact, what’s being designed by Russia, China, Iran and the Eurasia Economic Union is a post-Bretton Woods). Poszar remarks that wars, historically, are won by those who have more food and energy supplies, in the past to power horses and soldiers, today to feed soldiers and fuel tanks and fighter jets. China, incidentally, has amassed large stocks of virtually everything.

Read more …

“..so that people can see the scale of depravity and Biden family corruption within the evidence..”

• Two-Star General Warns Hunter Biden Laptop Witness About His Safety (CTH)

Emerald Robinson has a great interview with Jack Maxey from Switzerland. Maxey was the first person to receive a full hard drive copy of the Hunter Biden laptop from Rudy Guliani. After media, Senate and U.S. government officials refused to take action, Maxey went to Switzerland in order to complete a full forensic audit of the laptop content in a neutral jurisdiction. Previously, Maxey outlined his intent to share the full contents of the original files, and all of the retrieved deleted files, with the public so that people can see the scale of depravity and Biden family corruption within the evidence. In this interview with Emerald Robinson, Maxey states the full and searchable email archive will likely be completed early next week.


Additionally, in this interview Maxey goes into greater detail about the larger issues surrounding impediments to the release of information, including how the laptop contained access certificates to enter the Defense Department database. Maxey tried to get the DoD to address the issue without success, until he found a direct conduit to a two-star general who took the certificate codes, deactivated the access and thanked him for his diligence. Unfortunately, that same general then told Maxey he needed to focus on securing the safety of himself and his family, as the full weight of the U.S. interests, including the intelligence apparatus and defense apparatus, will likely target him. In my opinion, it is Maxey’s forensic review of the data and statements about making it all public, that triggered/pressured the collective western media to begin admitting the laptop issues were real and start covering the details.

Read more …

What an insane story.

• BLMs LA Mansion Bought For 3.1M Sold 6 Days Later For 5.8M (DM)

A Los Angeles mansion frequented by Marilyn Monroe and Humphrey Bogart was bought by a real estate developer working for BLM founder Patrisse Cullors and her partner for $3.1 million, and then purchased by BLM’s foundation just six days later for $5.8 million in cash, it has emerged. The rapid price inflation ‘raises serious questions,’ ethics experts said. The purchase of the 6,500 square-foot, six-bedroom property in Studio City was first revealed on Monday by New York Magazine, amid growing questions about BLM’s finances. The organization in February 2021 said it had taken in more than $90 million in 2020 and still had $60 million on hand, but it remains unclear how that money is being managed or even where it is.

Cullors, the co-founder of the organization, resigned in May 2021 as director of the Black Lives Matter Global Network Foundation (BLMGNF), amid scrutiny of her property empire. She has written best-selling books, and has a contract with Warner Brothers to produce content. On Wednesday, Cullors, 38, angrily hit back at the questions over cash purchase of the Studio City mansion, describing the criticism as ‘racist and sexist’. She insisted that the expansive property was bought as a ‘safe space’ for black creatives, activists and thought leaders, and its purchase was never disclosed because it needed renovating. Cullors called the New York Magazine investigation ‘a despicable abuse of a platform that’s intended to provide truthful information to the public’, and said that the author had ‘a proven and very public bias against me and other Black leaders’. She did not address the discrepancy in the home’s cost.

The property was purchased on October 21, 2020 by Dyane Pascall, a real estate developer who worked for the firm run by Cullors and her partner, Janaya and Patrisse Consulting. Pascall is president of Conscious Capital Investment Enterprises, according to LinkedIn, which describes it as ‘Real Estate Investment company in South LA that provides affordable housing in low income communities in the face of rapid gentrification.’

Read more …

“today all the gold in the world is worth $12 trillion, while global equities are worth $115 trillion. In 1980, the ratio was one-to-one..”

• Peter Thiel Blasts Buffett, Dimon, & Fink As “Finance Gerontocracy” (ZH)

At Bitcoin 2022, Thiel started his speech with a video from him in the past, talking about the future of digital infrastructure. His predictions regarding cell phone usage, which may have sounded odd at the time, were quite accurate. He also mentioned the dollar hegemony and even the potential for digitalization of the dollar, all of which we are seeing today. The speech that followed was, in the words of Bitcoin Mag, “quite incredible” – he started by pulling out a wad of $100 bills, and presenting them to the crowd. He said, “It’s a mysterious thing, what is money?” He followed by offering the money to a random person in the crowd, a gesture to which many people responded. “It’s kind of crazy that this still works,” Thiel said. While he is a billionaire, he had a point.

He went on about how PayPal began, bitcoin’s placement in terms of velocity and more — and then he began talking about enemies of Bitcoin. “If bitcoin is going to replace gold, the question is, why is it so undervalued?” he said. “Bitcoin is always the most honest market in the world, the most efficient market and it was the canary in the coal mine.” Thiel went on to point out that “today all the gold in the world is worth $12 trillion, while global equities are worth $115 trillion. In 1980, the ratio was one-to-one, with all the gold in the world and global equities having the same value of $2.5 trillion.” And so, while in the 1970s, equities were a bad investment, the great moderation that started in 1980 after Volcker killed galloping inflation, made equities the best investment of the past 40 years.

However, now that inflation is as high as it was in the late 1970s, equities are the enemy and bitcoin is the right investment, according to Thiel. Concluding his musing on valuation, Thiel says that the competitor for bitcoin is not ethereum which is a payment system, nor gold, but equities and asks why shouldn’t there be parity between the $115 trillion value of global equities and the ~$830BN value of bitcoin. “I am still hopeful that bitcoin goes up by a factor of 100x” he said. The Paypal founder then also makes a mockery of all those who say that bitcoin is not an inflation hedge with just one chart – the chart showing how anyone who had a sense of the inflationary tsunami that is coming, made a killing in early 2020 when the could have bought bitcoin at a far lower price.

Saying that it’s hard to know where Bitcoin goes from here, the billionaire said that Bitcoin is the most honest and most efficient market: “Bitcoin is the canary in the coalmine, it was telling us that inflation is coming; it is telling us that central banks are bankrupt; it is telling us that we are at the end of the fiat money regime.” [..] His conclusion: the Financial Gerontocracy has declared war on Bitcoin as a revolutionary youth movement for good reason. It is this time the revolutionary youth should understand their enemies and return fire.

Thiel

Read more …

It’s everywhere.

• The Spike Protein Is The “Amyloid” Being Deposited (Chesnut)

The spike protein is the “amyloid” being deposited and inducing amyloidoses: a major finding missed severe covid may be due to the added deposition of complement with the spike. The paper “The histologic and molecular correlates of COVID-19 vaccine-induced changes in the skin” made a case for the immune response to the Spike Protein causing self-limited hypersensitivity reactions to the vaccine. However, if you study the paper carefully, you notice that the authors have missed a far more important finding.

The biopsy specimens of normal skin post vaccine and of skin affected by the post-vaccine eruption showed rare deep microvessels positive for spike glycoprotein with no complement deposition contrasting with greater vascular deposition of spike protein and complement in skin biopsies from patients experiencing severe coronavirus disease 2019 (COVID-19). The histology exactly recapitulated perniosis including COVID-19–associated perniosis, which provides evidence that the Spike Protein alone induces COVID-19 pathology. More importantly, the fact that IN NORMAL SKIN, the Spike Protein was found to be deposited in DEEP VESSELS, MICROVESSELS, BLOOD VESSELS AND DEEP ENDOTHELIAL CELLS. Why would one assume that this deposition is only occurring in NORMAL SKIN TISSUE? I believe it is most certainly occurring in NORMAL TISSUE. PERIOD.

Read more …

Think they’ll give their lives for him?

• Nearly $300 Million To Wokify The Canadian Military (CS)

Nestled deep within the Liberal government’s new 2022 budget is a whopping $100.5 million in taxpayer funding for “gender identity” culture change and training in the Canadian Armed Forces. The sum is part of Prime Minister Justin Trudeau’s new $58 billion spending bonanza and nested in their $8 billion defence spending boost over the next five years. “Budget 2022 proposes to provide $100.5 million over six years, starting in 2021-22, with $1.7 million in remaining amortization, and $16.8 million ongoing,” the budget report reads. These funds will be put towards “undertaking engagement and consultations on culture change” as it relates to gender identity or sexual orientation discrimination. The Liberal budget also mentions “coaching services.”


Under Trudeau’s watch, Canada’s military has been hit with sex scandals and harassment controversies. Instead of addressing the root causes of the problem and removing bad apples, the Liberals have used the issue as an opportunity to make the military more woke. Another gender-related spending in the defence budget included $144.3 million over five years and an additional $31.6 million ongoing to expand health services and physical fitness programs to “be more responsive to women and gender-diverse military personnel.” “This builds on funding from Budget 2021 of $236.2 million over five years, starting in 2021-22, and $33.5 million ongoing for the Department of National Defence and Veterans Affairs Canada to support efforts to eliminate sexual misconduct and gender-based violence in the military and support survivors,” the budget claims.

Read more …

One big vicious circle.

• Priti Patel Part Of CIA-linked Lobby Group With Husband Of Assange Judge (DUK)

Priti Patel sat on the Henry Jackson Society’s (HJS) advisory council from around 2013-16, although the exact dates are unclear as neither the HJS nor Patel responded to Declassified’s requests for clarification. She has also received funds from the HJS, and was paid £2,500 by the group to visit Washington in March 2013 to attend a “security” programme in the US Congress. Patel, who became an MP in 2010 and was appointed Home Secretary in 2019, also hosted an HJS event in parliament soon after she returned from Washington. After the UK Supreme Court said this month it was refusing to hear Assange’s appeal of a High Court decision against him, the WikiLeaks founder’s fate now lies in Patel’s hands. He faces life in prison in the US.

The HJS, which was founded in 2005 and does not disclose its funders, has links to the CIA, the intelligence agency behind the prosecution of Assange and which reportedly developed plans to assassinate him. One of the HJS’s international patrons is James Woolsey, CIA director from 1993-95, who was in this role throughout the period Patel was advising the group. Woolsey’s affiliation to the HJS goes back to at least 2006, soon after it was founded. In 2014, the group hosted General David Petraeus, CIA director from 2011-12, at a UK parliament meeting from which all media were barred. Three years later, in 2017, the HJS organised another event at parliament with General Michael Hayden, CIA director from 2006-9, to “discuss the current state of the American Intelligence Community and its relationships with foreign partners.”

Hayden described “the relationship within the Five Eyes community as strong as ever, despite potential concerns over recent intelligence leaks between members.” Five Eyes is an intelligence alliance comprising Australia, Canada, New Zealand, the UK, and the US. During a visit to the UK in July 2020, then US Secretary of State Mike Pompeo spoke at a roundtable hosted by the HJS with what the Washington Post referred to as a group of “hawkish” members of the Conservative Party. As director of the CIA in 2017, Pompeo had launched a blistering attack on WikiLeaks calling the media organisation a “hostile intelligence service” that makes “common cause with dictators”. Pompeo did not provide evidence but added a threat: “To give them the space to crush us with misappropriated secrets is a perversion of what our great Constitution stands for. It ends now.”

Read more …

 

 

 

 

 

Biden family

 

 

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

 

 

 

Debt Rattle July 6 2021

Jul 062021
 
 July 6, 2021  Posted by at 8:53 am Finance Tagged with: , , , , , , , , ,  85 Responses »


Edourd Manet A Bar at the Folies-Bergère 1882

 

• Israel Sees Plunge In Pfizer Vaccine Efficacy Rate Due To Delta Variant (BBG)
• Lambda Covid-19 Variant From Peru May Be Resistant To Vaccines (NYP)
• 9 Reasons Not to Support, Mandate Investigational COVID19 Vaccines (McCullough)
• The Chicken-and-Egg Problem (Which Came First?) (VanDen Bossche)
• How the Moderna Covid-19 mRNA Vaccine Was Made So Quickly (CNBC)
• Can Immune Responses Alone Reveal Which Covid-19 Vaccines Work Best? (Smag)
• T Cells: Why Immunity Is About More Than Antibodies (CEBM)
• Refusing To Be Vaccinated Against Covid A ’Sin’ – Russian Orthodox Church (RT)
• Relaxing Of Covid Restrictions In England Sparks Social Media Meltdown (Clark)
• HIV Vaccine Trial Launched At Oxford In Bid To End ‘40-Year Wait’ (RT)
• The Dollar’s Declining Status as Dominant “Global Reserve Currency” (WS)
• The Ice-Cream Flavor Next Time (Kunstler)

 

 

 

 

Suramin

 

 

VanDen Bossche?

• Israel Sees Plunge In Pfizer Vaccine Efficacy Rate Due To Delta Variant (BBG)

Israel has recorded a steep drop in the efficacy rate of the Pfizer-BioNTech vaccine in preventing coronavirus infections, due to the spread of the Delta variant and the easing of government restrictions, Ynet news website reported, citing Health Ministry data. At the same time, the decline in protection against serious cases and hospitalisation is considerably milder, the website said. The figures show that between May 2 and June 5, the vaccine had a 94.3 per cent efficacy rate. From June 6, five days after the government cancelled coronavirus restrictions, until early July, the rate plunged to 64 per cent. A similar decline was recorded in protection against coronavirus symptoms, the report said. At the same time, protection against hospitalisation and serious illness remained strong.


From May 2 to June 5, the efficacy rate in preventing hospitalisation was 98.2 per cent, compared with 93 per cent from June 6 to July 3. A similar decline in the rate was recorded for the vaccine’s efficiency in preventing serious illness among people who had been inoculated. These figures are in line with ministry data that show many of the new cases are among people who have been vaccinated, while the number of serious cases is rising much more slowly, Ynet said. Last Friday, 55 per cent of the newly infected had been vaccinated, the website said. As at July 4, there were 35 serious cases of coronavirus in Israel, compared with 21 on June 19. [..] Israel had one of the world’s most effective coronavirus inoculation drives. Some 57 per cent of the general population is fully vaccinated, including 88 per cent of the population above the age of 50 – the group considered most at risk for serious cases.

Read more …

The more vaccinations, the higher the chance for more variants. The official narrative has this completely upside down, but it will take a lot for them to declare defeat. Booster shots sounds a lot better to them.

• Lambda Covid-19 Variant From Peru May Be Resistant To Vaccines (NYP)

Scientists fear that a highly contagious new COVID-19 variant that is ravaging Peru may be resistant to vaccines. The Lambda mutation, or C.37, appears to have emerged in Peru last August — and is now being blamed for the country having the highest pandemic death rate in the world. The concerning strain has since spread to around 30 countries, mostly in Latin America — but also as far as the UK, which has recorded at least eight cases, according to government figures. There are no known cases of the Lambda strain in the US, according to the Centers for Disease Control and Prevention. In Peru, Lambda has accounted for 81 percent of new infections tested for variants since April, according to the World Health Organization.

The South American nation currently has by far the highest mortality rate in the world, according to Johns Hopkins University data. There, nearly 10 percent of those recorded as being infected end up dying — with the death rate of nearly 600 for every 100,000 citizens almost double that of the next nation, Hungary, the data shows. The US is 21st with just under 185 deaths per 100,000. Lambda was last month declared a Variant of Interest by the World Health Organization (WHO), which noted that it was “associated with substantive rates of community transmission in multiple countries.” “Lambda carries a number of mutations” that may have led to “potential increased transmissibility or possible increased resistance to neutralizing antibodies,” the WHO said.

Scientists in Chile — where Lambda is blamed for more than a third of the country’s infections — also warned in a recent study, published in a preprint last week, that it appears to evade vaccines better than other strains. “Our data show for the first time that mutations present in the spike protein of the Lambda variant confer escape to neutralizing antibodies and increased infectivity,” wrote the researchers from the University of Chile in Santiago. That could explain why it has been able to take hold despite Chile “undergoing a massive vaccination program,” the study warned.

Read more …

McCullough is clear and concise. Wonder how long LinkedIn will keep this up.

• 9 Reasons Not to Support, Mandate Investigational COVID19 Vaccines (McCullough)

1. COVID-19 vaccination is voluntary research. The COVID-19 public vaccination program operated by the CDC and the FDA is a clinical investigation and under no circumstance can any person receive pressure, coercion, or threat of reprisal on their free choice of participation. Violation of this principle of autonomy by any entity constitutes reckless endangerment with a reasonable expectation of causing personal injury resulting in damages.


 2. COVID-19 vaccines do not work well enough. The current COVID-19 vaccines are not sufficiently protective against contracting COVID-19 to support its use beyond the current voluntary participation in the CDC sponsored program. A total of 10,262 SARS-CoV-2 vaccine breakthrough infections had been reported from 46 U.S. states and territories as of April 30, 2021. Among these cases, 6,446 (63%) occurred in females, and the median patient age was 58 years (interquartile range = 40–74 years). [..]

3. COVID-19 vaccines have a dangerous mechanism of action. The Pfizer, Moderna, and JNJ vaccines are considered “genetic vaccines” or vaccines produced from gene therapy molecular platforms.[i] [ii] They have a injurious mechanism of action in that they all cause the body to make an uncontrolled quantity of the pathogenic spike protein from the SARS-CoV-2 virus. This is unlike all other vaccines where there is a set amount of antigen or live-attenuated virus. This means for the Pfizer, Moderna, and JNJ vaccines it is not predictable among patients who will produce more or less of the spike protein. The spike protein itself has been demonstrated to injure vital organs such as the brain, heart, lungs, as well as damage blood vessels and directly cause blood clots. Additionally, because these vaccines infect cells within these organs, the generation of spike protein within heart and brain cells in particular, causes the body’s own immune system to attack these organs. [..]


7. People are dying and being hospitalized in record numbers in the days after COVID-19 vaccination. Based on VAERS as of June 25, 2021, there were 6,985 COVID-19 vaccine deaths reported and over 23,257 hospitalizations reported for the COVID-19 vaccines (Pfizer, Moderna, JNJ). By comparison, from 1999, until December 31, 2019, VAERS received 3167 death reports (158 per year) adult death reports for all vaccines combined. Thus, the COVID-19 mass vaccination is associated with at least 39-fold increase annualized vaccine deaths reported to VAERS. COVID-19 vaccine adverse events account for 98% of all vaccine-related AEs from Dec 2020 through present in VAERS.

Bell’s palsy

Read more …

VanDen Bossche reacts to the CNN article I cited on July 4, Unvaccinated People Are “Variant Factories” – Infectious Diseases Expert.

“..not the non-vaccinated individuals but the vaccinees are now responsible for driving Sars-CoV-2 evolutionary dynamics..”

• The Chicken-and-Egg Problem (Which Came First?) (VanDen Bossche)

As already mentioned on multiple occasions, molecular epidemiologists have shown that population-level S protein-directed immune pressure is now driving the propagation of variants that are increasingly evolving mutations enabling resistance to S-specific antibodies (as now massively induced by the ongoing vaccination campaigns). As more infectious variants bind to the cellular Ace-2 receptor with enhanced binding strength, the Ace-2 receptor more readily outcompetes S-specific antibodies for binding to these variants. Consequently, these variants gain a competitive advantage when replicating in individuals who exert strong S-directed immune pressure on the virus (i.e., in vaccinees!), especially upon incorporating additional mutations (within the RBD) that prevent direct binding of S-specific vaccinal antibodies.

Variants that are increasingly resistant to S-specific antibodies (e.g., delta and delta plus variant) can only adapt to the population provided the S-directed immune pressure is widespread in the population. This is, of course, the case if larger parts of the population get vaccinated and when vaccinees can easily transmit the variant due to relaxation of infection prevention measures. In principle, non-vaccinated individuals who are in good physical and mental health can deal with all variants, provided the infectious viral pressure does not exceed a certain threshold. This is because their innate antibodies have relatively lower affinity for the virus.

However, breeding of more infectious and more anti-S antibody-resistant variants in vaccinees will inevitably enhance viral replication and transmissibility in vaccinees, thereby raising the infectious pressure and increasing the likelihood for non-vaccinated subjects to become re-infected while their natural/ innate antibodies (Abs) are being suppressed by short-lived S-specific Abs (elicited as a result from previous asymptomatic infection). So, ‘yes’, some non-vaccinated people will become susceptible to the disease and then contribute to further propagation of these variants. It’s important to note, however, that this is a result and not the source of the enhanced evolution of the virus.

So, not the non-vaccinated individuals but the vaccinees are now responsible for driving Sars-CoV-2 evolutionary dynamics. It’s also important to note that non-vaccinated people will not contribute to natural selection as they will either eliminate the virus (thanks to their innate antibodies in synergy with natural killer cells) or become susceptible to Covid-19 disease due to suppression of their innate immune defense. Short-term shedding of low concentrations of viral variants by asymptomatically infected, non-vaccinated people is a direct consequence of shifting natural immune selection forces that are increasingly coming into play as a result of mass vaccination. This will ultimately put the vaccinees in much worse shape than the non-vaccinated as the latter will still be able to rely on their innate Abs.

Read more …

For 10 years, Moderna could get no approval for anything. Then it got one in weeks. Pfizer may have played a key role in that.

• How the Moderna Covid-19 mRNA Vaccine Was Made So Quickly (CNBC)

Almost all people hospitalized for Covid-19 are not vaccinated — 99.9% as of May to be exact, according to a recent Associated Press report. Yet 13% of U.S. adults said they will “definitely not” get a COVID-19 vaccine as recently as late May, according to Kaiser Family Foundation COVID-19 Vaccine Monitor. Another 12% wanted to “wait until it has been available for a while to see how it is working for other people.” Vaccinating the majority of the population is the best way to help avoid further surges from constantly evolving variants, like the current delta variant, which is quickly spreading in the U.S. and other countries. Still, Moderna co-founder Noubar Afeyan understands the hesitation to get a new vaccine.

“The vaccines came out in such a [short] timeframe that people assumed automatically, it can’t possibly be safe,” Afeyan said during a talk at Massachusetts Institute of Technology in May. “In fact, many, many people were on television espousing the view that — experts for that matter — that if it’s done in less than five years, it’s got to be unsafe, all of which is untrue. “Nevertheless, people get confused.” What people might not understand is that extensive research was being done on mRNA technology and other mRNA vaccines for years. That decade plus of experience and the innovation of mRNA technology itself is what allowed Moderna to produce its Covid mRNA vaccine so quickly as the pandemic struck. And it could also change the future of medicine.

Here’s what you need to know about how the Moderna Covid-19 mRNA vaccine was developed. It is true that Moderna’s mRNA vaccine was ready remarkably fast, as was Pfizer’s. Chinese scientists put the genetic sequence of the novel coronavirus online on Jan. 11. Over the next two days, the NIH and Moderna used it to plot out a vaccine. Afeyan remembers getting a key call about the development of the Covid-19 vaccine. “January 21st, my daughter’s birthday…. I got a call from Davos [during The World Economic Forum] from the CEO of Moderna,” he says. Bancel had been approached by a number of public health groups at the conference “urging” him to work on a vaccine. “We literally Decided overnight…to try and do this,” Afeyan said at MIT.

Moderna delivered the first doses of its Covid-19 vaccine to the NIH for testing on Feb. 24, 2020, and “the first Moderna shot went into a volunteer’s arm in Seattle on March 16, 2020,” according to Afeyan. After testing the Moderna vaccine on 30,000 volunteers, on Dec. 18, 2020, the FDA authorized it for emergency public use, and three days after that, the first Moderna vaccines were administered to front-line health workers, according to Afeyan. One of the reasons Moderna’s mRNA Covid vaccine development moved so quickly is because scientists had been working with mRNA for years. [..] And Moderna has been working with mRNA technology “since its inception in 2010 for myriad therapeutic areas,” including cancer therapies, Afeyan tells CNBC Make It (by way of a publicist), and with clinical development of mRNA-based antiviral vaccines since 2015.

Read more …

Science Mag sees testing protocols primarily as a nuisance because proven vaccines are now available. Proven before they were tested, that is. With a vague bit about T cells thrown in.

• Can Immune Responses Alone Reveal Which Covid-19 Vaccines Work Best? (Smag)

Other than running a placebo-controlled, clinical trial lasting many months and involving tens of thousands of people, is there any way to be sure a COVID-19 vaccine will work? Many researchers contend that the success of several vaccines now widely in use offers a shortcut: Simply gauge a vaccine’s ability to elicit so-called neutralizing antibodies, which bind to the virus and prevent it from entering cells. But several recent studies, the latest published as a preprint on 24 June, point to other “correlates of protection”: “binding” antibodies—which latch on to the virus but don’t block entry—and another set of immune warriors called T cells.

Vaccine decisions may soon depend on a better understanding of these supporting actors. Several companies are developing updates of their COVID-19 vaccines tailored to protect against new viral variants, and they hope regulatory agencies won’t require that they show efficacy in big clinical trials, which are not only time-consuming and expensive, but also increasingly ethically fraught because some of the participants receive a placebo even though proven vaccines are now available. With an established correlate of protection, trials can give an updated vaccine to a much smaller group of participants and then check whether they produce the telltale immune responses. (That’s how the annual updates of flu vaccines are approved.) Health officials may also turn to correlates when they consider prioritizing existing COVID-19 vaccines, authorizing new “mix and match” combinations, or even when making decisions about entirely new vaccines.

But finding robust correlates has been challenging. During the megatrials that led to the authorization of COVID-19 vaccines, investigators monitored antibody responses and tried to correlate them with their odds of participants getting sick. Different trials, however, used different antibody assays and different definitions of mild COVID-19, the main endpoint in the trials. “It’s anarchy because it’s always been anarchy,” says John Moore, an immunologist at Weill Cornell Medicine. “You’re dealing with different academic labs and different companies, and companies tend not to talk to each other.” Many trials also lacked the statistical power to measure protection from hospitalization and death, arguably a COVID-19 vaccine’s most important task. And few trials even looked carefully at T cells, which are far more cumbersome to measure.

[..] Penny Moore and colleagues also found support for a role for T cells. In an 11 June preprint, they reported that 96% of participants in an efficacy trial of the COVID-19 vaccine produced by Johnson & Johnson (J&J) made antibodies that neutralized a viral strain from early in the pandemic but only 19% had antibodies that neutralized the Beta variant, which is widespread in South Africa and infamous for dodging neuts. Yet despite the variant, the vaccine remained protective against moderate and severe COVID-19. “I think it’s entirely plausible … that T cells are doing something really useful here,” Penny Moore says.

And you thought spike proteins were bad…
https://twitter.com/i/status/1412287378568384515

Read more …

I was reading this yesterday (twice), how the immune system fights off Covid.

• T Cells: Why Immunity Is About More Than Antibodies (CEBM)

The CD4+ T cell response in COVID-19 Some studies have shown that in patients with severe COVID-19 there is evidence of impaired function of CD4+ T cells, including reduced IFN ɣ production [16], while others seem to suggest over-activation of these T cells [17]. Overall, the CD4+ T cell response in acute SARS-CoV-2 infection, whether impaired, over-activated, or inappropriate, and how this relates to disease outcomes, remains to be elucidated and is an important question. A particularly high frequency of CD4+ T cell responses specific to virus spike protein has been observed in patients who have recovered from COVID-19, which is similar to what has been reported for influenza virus infections [11]. In one small study of 14 patients, circulating virus-specific CD4+ T cells were identified in all of those who recovered from SARS- CoV-2, which also suggests the potential for developing T cell memory [18] and perhaps longer-term immunity.

The CD8+ T cell response in COVID-19 There appears to be heterogeneity in the immune response between patients. Some studies have reported that CD8+ T cells from patients with severe COVID-19 had reduced cytokine production following in vitro stimulation, and some have shown evidence of possibly exhausted T cells; in contrast, other studies have reported an overaggressive CD8+ T cell response or highly activated CD8+ T cells with increased cytotoxic response in patients with COVID-19 [14]. It is still unclear how the heterogeneity of the CD8+ T cell response relates to disease features, which could be driven by, for example, patient immunotypes [17,19] or the nature of the interaction between respiratory epithelial cells and cytotoxic T cells and the level of response.

Several chemokine receptor genes (including CCR9, CXCR6, and XCR1) and the locus controlling the ABO blood type have been identified as being associated with severe disease; however, whether these genes are directly or indirectly related to T cell responses in COVID-19 remains unknown [14]. A higher proportion of CD8+ T cell responses was observed in patients who only developed mild disease, suggesting a potential protective role of CD8+ T cell responses [11]. Most of the CD8+ T cell responses were specific to viral internal proteins, rather than spike proteins, which should be considered in vaccine development [4]. SARS-CoV-2-specific CD8+ T cells are present in about 70% of patients who have recovered [18], which is evidence of a virus-specific CD8+ T cell response and the presence of CD8+ T cell memory. However, the ability of these cells to protect from future infection remains to be determined.


Role of T cells in response to COVID-19 infection: adapted from The trinity of COVID-19: immunity, inflammation and intervention. Nat Rev Immunol. 2020 Jun;20(6):363-374. doi: 10.1038/s41577-020-0311-8.

Read more …

How clear is the bible on this?

• Refusing To Be Vaccinated Against Covid A ’Sin’ – Russian Orthodox Church (RT)

Those who refuse to be vaccinated against Covid-19 are committing a sin they will have to repent for the rest of their lives. That’s according to the Russian Orthodox Church, whose spokesman said rejecting a jab is selfish. Speaking to TV channel Russia 24, the head of the Russia Orthodox Church’s Department for External Church Relations, Metropolitan Hilarion, explained that his parishioners regularly repent to him for not being vaccinated. They feel guilty because they passed the virus on to someone else who eventually died, he claimed. “They come and say, ‘How am I supposed to live with this now?’ And it’s hard for even me to say how to live with it,” he explained. “All your life, you have to make up for the sin you committed.”


The sin is thinking about yourself instead of thinking about other people,” the metropolitan said. “We are responsible – each of us – not only for ourselves and not only for our loved ones, but also for all those who come into contact with us.” In recent months, the Church has been more vocal about its support for the government’s vaccination program. Metropolitan Hilarion has regularly spoken on TV about the need to follow the rules and take precautions to avoid infection. In June, the cleric revealed his “positive attitude” towards the government initiative to impose compulsory vaccination on those working in the service sector. “Of course, it is desirable to observe the principle of voluntariness in relation to vaccinations – the principle that was stated from the very beginning,” he explained. “But there is also the principle of people’s responsibility for the lives of other people.”

Read more …

Seen this a lot in the UK: people who say it’s criminal to expose kids to Covid, and therefore they should be injected. How do you get the world so wrong side up?

• Relaxing Of Covid Restrictions In England Sparks Social Media Meltdown (Clark)

Boris Johnson has announced that masks and social distancing are likely to end on July 19, which has, predictably, been met with a hysterical, irrational response by those who don’t seem to want life ever to return to normal. Talk about being triggered. Boris Johnson’s press conference on Monday sent #wearamask Twitter into a hyperbolic meltdown of epic proportions. The PM announced that the public would have independence from burdensome domestic Covid restrictions- which were supposed to have lasted for only three weeks but instead have lasted for sixteen months- on 19 July 19, with confirmation of this coming on July 12. The relaxing of restrictions had been foreshadowed in an article in the Mail on Sunday by the new UK Health Secretary Sajid Javid, in which he said Britain would need to learn to live with Covid.

While we should all remain cynical about what the government may have planned for the autumn, Javid declared –rightly, in my view– that opening the country up would actually make us healthier, physically and mentally. Cue the most incredible Twitter meltdown ever seen. What the government was proposing was ‘genocide.’ “Why are the British people accepting this? We need to close borders, effective test and trace, social distancing (through bi-weekly remote and in person education) in schools, masks indoors, work from home and vacs until infections are really low. Then re-cover (sic), slowly” opined one Tweeter ironically with the moniker ‘Freedom.’ Citing Orwell (again, who said satire was dead?), the Observer’s Carole Cadwalladr tweeted “War is peace. Freedom is slavery. Health is the deliberate mass infection of an entire nation’s children with a novel & mutating virus with unknown long-term consequences.”

The hashtag #WearAMask was trending with a whole succession of self-righteous virtue signallers telling the world that they would continue to mask up after July 19, whatever the government announced. Repeat after Me: People who wear masks are Good People, People who don’t are Bad People (and probably supporters of Brexit and Donald Trump). “The thing about mask wearing is it protects others more than you” declared Liberal Democrat MP Layla Moran, who piously informed us she’d continue to wear a mask indoors after July 19. As if we had to know. The Liberal Democrat-supporting author Emma Kennedy tweeted: “In a nutshell, post July 29 there will be people prepared to wear masks because they care about other people. And those who don’t. And that’s it, isn’t it.”

Read more …

If it doesn’t have any mRNA, we’re not interested.

• HIV Vaccine Trial Launched At Oxford In Bid To End ‘40-Year Wait’ (RT)

Researchers at the UK’s University of Oxford have administered the first doses of a potential HIV vaccine to participants, as part of a Phase-One clinical trial launched on Monday. The trial, called HIV-CORE 0052, aims to evaluate the safety, tolerability, and immunogenicity of the HIVconsvX vaccine, the University said. The project is part of the European Aids Vaccine Initiative, funded by the European Commission. The jab is known as a “mosaic,” meaning it can target a broad range of HIV-1 variants and potentially become a suitable vaccine for use around the world. Scientists will give two doses of the vaccine four weeks apart to 13 healthy, HIV-negative adults, aged between 18 and 65, who are not considered at risk of infection. “An effective HIV vaccine has been elusive for 40 years,” Tomas Hanke, the trial’s lead researcher and Professor of Vaccine Immunology at the University of Oxford’s Jenner Institute, said in a statement.


“This trial is the first in a series of evaluations of this novel vaccine strategy in both HIV-negative individuals for prevention and in people living with HIV for cure.” The Oxford solution works by stimulating the body’s immune response via T cells which kill specific pathogens, unlike most other HIV vaccine candidates, which induce antibodies created by B-cells to fight the virus. HIV attacks the body’s immune system and can develop into life-threatening AIDS if left untreated. In 2014 the UN announced a ‘fast-track’ target of decreasing the number of people newly-infected with the virus to 500,000 by 2020. However, last year there were approximately 1.5 million new cases. The Oxford team expects to report its results by April next year. There are also plans to start similar trials in Europe, Africa and the US.

Read more …

Always amusing. But mostly led by what people wish for, not what is reality.

• The Dollar’s Declining Status as Dominant “Global Reserve Currency” (WS)

Yes, the Fed is a drunken reckless money-printer, and the US government has been high for years on deficit spending, but other major central banks and governments do the same or worse. The long-term trends are clear, however. The global share of US-dollar-denominated exchange reserves ticked up to 59.5% in the first quarter of 2021, after having dropped to a 25-year low in Q4 2020, according to the IMF’s Composition of Official Foreign Exchange Reserves (COFER) data released at the end of June. Dollar-denominated foreign exchange reserves are Treasury securities, US corporate bonds, US mortgage-backed securities, US Commercial Mortgage Backed Securities, and other dollar-denominated financial assets held by foreign central banks. Q1 was a ripple in the long-term trajectory.

Since 2014, the dollar’s share has dropped 6.5 percentage points, from 66% to 59.5%, on average 1 percentage point per year. At this rate, the dollar’s share would fall below 50% over the next decade. Since 1999, when the euro arrived, the dollar’s share of foreign exchange reserves has dropped 11.5 percentage points, from 71% to 59.5% (year-end shares, except Q1 2021):

Exchange rates between the dollar and other currencies change the valuations expressed in dollars of non-dollar reserves, such as German government bonds. Yes, but… The Dollar Index (DXY) moved substantially since 1999, up and down, but it is now roughly back where it was in 1999. This means that nearly all of the decline in the share of the dollar as foreign exchange reserves since 1999 was due to central banks unloading dollar-denominated assets, and not due to exchange rates.

Read more …

“..decoding the foreign policy moves signified in “Joe Biden’s” ice-cream flavor choices. (Rocky Road means: Oh, let China have that….)”

• The Ice-Cream Flavor Next Time (Kunstler)

A nation mesmerized by its own weakness wanly celebrated the long-ago and faraway memory of standing up for itself, while it passively endures the current orgy of tyrannical cancellation and suppression of anyone talking back to the present folks-in-charge. Over just a few years, this tyranny has grown like a toxic slime mold from such an unlikely place, the Internet social app ecology of Facebook, Twitter, and Google, as they took over the public arena — where the battle of ideas is supposed to live — and did the government’s dirty work, complete with adorable emojis. You’re fired! Who will stand up to Zuck, Jack, and Sundar Pichai? Who elected these megalomaniacs boss of the USA? What will it take to end their reign of terror? Some sort of… revolution? (Shhhh! That must be a dirty word, even considering we just celebrated the high point of the American Revolution: The Declaration of Independence, signed July 4, 1776.)

Don’t look to “Joe Biden,” the nation’s putatively elected leader — about whose election back in November, 2020, you are liable to hear more about as the summer stickily unspools. Zuck, Jack, and Sundar managed to protect “Joe Biden” from the stupendous depredations of his offspring, Hunter Biden, recorded in explosive detail on a laptop the public was not allowed to hear about. Don’t look to the Department of Justice, supposedly “investigating” that horde of memos and emails detailing the Bidens ’influence-peddling to the CCP and others — they’re busy surveilling “white supremacists” on the apps run by Zuck, Jack, and Sundar. And for sure don’t look to the news media, that coalition of sell-outs and quislings, busy decoding the foreign policy moves signified in “Joe Biden’s” ice-cream flavor choices. (Rocky Road means: Oh, let China have that….)

Wondering who is actually running the “Joe Biden” government? Some of us out here are. (Do you think we’re allowed to say that?) For instance, have you tried googling the name Susan Rice lately? Remember her? Maybe not. “Joe Biden” appointed her Director of the White House Domestic Policy Council. From the looks of things across the country, you’d think her plate would be heaped mighty high, what with “insurrection” and other white mischief threatening to take down the republic. Anyway, I googled “news” for her. Hardly a goshdarn thing came up that wasn’t from months ago, and most of that was sheer puffery about how accomplished she is, and what a fabulous person. Don’t you wonder what her phone log looks like? All those calls to the Obama residence, day after day, hour after hour?

Read more …

 

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, you are now not just a reader, but an integral part of the process that builds this site. Thank you for your support.

 

 

 

 

Support the Automatic Earth in virustime. Click at the top of the sidebars to donate with Paypal and Patreon.

 

Debt Rattle June 8 2021

Jun 082021
 
 June 8, 2021  Posted by at 9:03 am Finance Tagged with: , , , , , , , ,  45 Responses »


Pablo Picasso Le repos 1932
This painting has a story. It’s very funny. Click the pic.

 

• Nearly 80% Of Surveyed Americans Won’t Change Their Mind & Get Vaccine (RT)
• Unvaccinated Houston Methodist Nurses Plan Walkout (HC)
• Why Subject Our Children To The Risk Of Death From Vaccination? (CW)
• Child Vaccination: Who’s Selfish Now? (Curzon)
• Time To Make Them PAY (Denninger)
• Embattled Thailand Kicks Off Mass Vaccination Drive Against Covid-19 (RT)
• Reset Yourself ! (Kunstler)
• Trump Calls Bitcoin Scam, Denounces It For Competing Against The Dollar (RT)
• Dumping The Dollar: Russia Ready To Shift Currency Liquidity To The Euro (RT)
• The Coming Biden/Putin Train-Wreck Summit (Ron Paul)
• Daniel Ellsberg: The 90-Year-old Whistleblower Tempting Prosecution (BBC)

 

 

 

 

Freud & Jung would have retweeted this clip.

 

 

 

 

Forget about vaccine-induced herd immunity.

• Nearly 80% Of Surveyed Americans Won’t Change Their Mind & Get Vaccine (RT)

A new poll has found that Americans refusing a Covid-19 vaccination are highly unlikely to change their minds as inoculation rates have also significantly dropped. More than three in four adults (78%) who have thus far refused to get a Covid-19 vaccination say they are unlikely to change their minds in the future, according to a new Gallup poll. Of that group, 51% say they are “highly unlikely” to change their minds. Approximately 20% of people who are hesitant to receive a vaccine say they are open to changing their stance, with only 2% saying they are “highly likely” to eventually be convinced to get inoculated. The poll – conducted among over 3,500 adults with a margin of error of 3% – could spell bad news for President Joe Biden’s ambitious goal of vaccinating 70% of US adults by July 4.

Recent reports have shown that vaccine rates are plummeting in recent weeks, threatening the president’s plan. While approximately 3.4 million shots were being given out a day in mid-April, that number has now fallen to below one million a day, according to a report from the Washington Post. To hit the president’s goal, it says, approximately 4.2 million adults would need to be getting vaccinated a week, but only 2.4 million were given a jab last week. The drop has been chalked up by health officials to a lack of supply, rather than demand as vaccination sites have popped up around the country, but are seeing less and less people come through.

Some states have tried incentivizing vaccine hesitant residents by offering lottery winnings worth millions of dollars. The rates of vaccination vary significantly from state to state, with a handful set to hit Biden’s goal, including New York, a state in which over 60% of adults have received at least one dose of a vaccine. Some right-leaning states, however, have lower vaccination rates and are unlikely to hit the 70% threshold in the next month, the Washington Post report goes on. Twelve states, including Oklahoma, Montana, and West Virginia, have seen their daily vaccinations fall to just 15 jabs per 10,000 residents. One Utah woman told the outlet that “in certain circles, it’s almost shameful to get the vaccine.”

Read more …

The entire state is free.

• Unvaccinated Houston Methodist Nurses Plan Walkout (HC)

Dozens of cheering supporters gathered outside the Houston Methodist Baytown campus Monday evening as several medical workers who refused to get a COVID-19 vaccine ended their last shifts working for the hospital system. The act of protest was aimed at what workers said was the hospital’s decision to suspend employees for two weeks without pay and then fire them for failing to immunize themselves. Jennifer Bridges, a nurse who effectively lost her job at the Baytown facility for deciding not to be inoculated, said the goal was to stage a walkout but that did not go as planned. Participating employees who refused the vaccine’s first dose were told not to gather or linger on the hospital grounds after ending their shift, she said. “The hospital wouldn’t let us do it,” Bridges said.

She got out of work early, emptied her locker and gathered with others on a grassy medium near the ambulance entrance to the hospital. Bridges fished a paper out of a backpack — a suspension report — that she had been asked to sign. She refused, she continued. About 117 employees in May filed a class action lawsuit against the health system for requiring its workers to be vaccinated against COVID-19. Bridges said the plaintiffs in the suit are a mix of those who want more trial data to emerge on the long-term effects of the vaccine before taking it, and those who simply don’t want any shots. “We’re not against the vaccine, we just want to be more comfortable with this one and have thorough research out before we take it,” Bridges in April said.

“When patients get care, they have the right to refuse treatment, but we’re not allowed that same exemption.” The suit alleged that the three major coronavirus vaccines are only authorized for emergency use by the U.S. Food and Drug Administration, meaning employers cannot require them as a condition of employment. At least 50 more employees have expressed interest in joining the plaintiffs since the lawsuit went public, she said.

Houston Methodist

Read more …

“SARS-CoV-2 is going to become an endemic virus. It will always be with us. The sooner most of us are exposed to it, ideally in childhood, the sooner it will cease to be a major problem.”

• Why Subject Our Children To The Risk Of Death From Vaccination? (CW)

All non-corrupted scientific commentators have known from the very start that this pandemic only ends one way: SARS-CoV-2 is going to become an endemic virus. It will always be with us. The sooner most of us are exposed to it, ideally in childhood, the sooner it will cease to be a major problem. High-risk individuals can choose to take a vaccine. Ivermectin and vitamin D can be used to prevent infection and treat confirmed cases. As we have seen, the argument that children must take vaccines so that we can achieve herd immunity is utterly false. Only those completely ignorant of virology and immunology would even attempt to make it. That brings us back to the original argument for vaccinating children against Covid: to protect them from the severe disease.

If this is the only reason to vaccinate children, there is only one calculation that parents should make: Is the risk from Covid greater than the risk from the vaccine? The present Covid vaccines being administered in the West are based on experimental technologies that are being used under emergency use authorisations (EUAs). Full safety studies will not be completed until 2023. The Covid vaccines were all created in the last year and we have no medium-term or long-term data on them. We don’t know if they will have an effect on children’s reproductive organs and fertility. We don’t know if they will produce auto-immune diseases. And we don’t know if they will lead to ADE (antibody-dependent enhancement) upon re-exposure to the virus (causing more severe illness).

We do know that the vaccines produce a range of cardiovascular and neurological events including strokes, myocarditis, pericarditis and paralysis in a significant number of people. In the small US state of Connecticut at least 18 children and young adults have come down with myocarditis, an extremely serious and sometimes fatal condition involving inflammation of the heart muscle (and they’ve only just started vaccinating children there). The Israel Ministry of Health has reported that the incidence of myocarditis for vaccine recipients is between 1 in 3,000 and 1 in 6,000 in young men. In Canada (population 38 million) only 11 children have died from Covid since the start of the pandemic. In the UK (pop 68 million) 32 children have died. It is nearly certain that all of them had one or more severe comorbidities. The fact is, most children brush off Covid without even knowing they’ve had it. For all intents and purposes, Covid poses zero risk to healthy children.

Read more …

“..a lot of ethical dilemmas as to whether you should vaccinate children to protect adults.”

• Child Vaccination: Who’s Selfish Now? (Curzon)

A number of school leaders have swung into action following the approval of the vaccination of children against Covid (a disease which almost all children aren’t at risk from) using the Pfizer vaccine (trials of which only included 1,134 children). It wasn’t very long ago that the establishment line was: if you don’t get a Covid vaccine, you are selfish. Even the Queen (disappointingly) joined in with this line [..]. But now, adult advisers to the Government suggest that children should be vaccinated not to protect children but to protect…themselves. Professor Anthony Harnden, the Deputy Chairman of the Government’s Joint Committee on Vaccination and Immunisation, says:


‘I think the vast majority of benefit won’t be to children, it will be an indirect benefit to adults in terms of preventing transmission and protecting adults who haven’t been immunised, for whatever reason haven’t responded to the vaccine and therefore that presents quite a lot of ethical dilemmas as to whether you should vaccinate children to protect adults.’ He notes that children themselves are ‘in the main’ not at risk from Covid. Over half of the adult population has been fully vaccinated (with seventy-five per cent having received at least one dose of a vaccine) and Covid deaths, while still exaggerated, have flattened. There is no reason to vaccinate most children and, given the potential side effects, many not to do so. If the Government bottles it on the vaccination of children, it is they who are being selfish.

FLCCC

Read more …

Good question (we asked this before): where are the life insurance companies?

If they don’t change their policies, that’s a big sign.

• Time To Make Them PAY (Denninger)

[..] of those from 5-17 the number of persons who were admitted to the hospital and died, from March 1 2020 through March 31st, 2021 was……. wait for it…… NINE. Yes, a literal NINE nationwide. Another nine under 5 died. That’s right — 18 children in total from 0-17 year olds died of Covid-19 all the way back to March of 2020. If that’s not enough further review in a recent study the CDC did itself found that about a third of those were misclassified and had no plausible connection to Covid-19 actually killing the person in question. That’s a statistical zero risk of death if you are in that age bracket (17 and under) and get Covid. There are roughly 75 million persons under the age of 18 in the United States; this means their risk of death from Covid-19 since March of 2020 is roughly 1 in 4 million.

To put context on this you’re roughly one thousand times (there is a lot of variation with age and sex) more likely to die of something else in that age bracket provided you make it out your first year. Why your first year? Because roughly 5,500 per million infants die in their first year from all causes combined which is a stunning 20,000 times the rate that Covid-19 kills them. In addition for those under 50 the percentage of hospital admissions ending in death was 2.4%. There is no material risk of dying of Covid if you are under 50 and this is with zero early drug intervention which we know works so can we cut the crap folks? This isn’t my data it’s the government’s official data. The AARP confirms this; 95% of those who died were 50+ but 64.6% of the Covid-19 alleged cases have been in people under 50.

Yet now the CDC is attempting to scare kids and adolescents into taking jabs through flat-out lies. Why hasn’t the CDC been banned from Twitter and Facebook for “medical misinformation”? They are the publishers of this data and yet they are knowingly lying about their own data! Now are there an awful lot of seniors who are fat and/or diabetic? You bet. But there are also many who are not and Covid doesn’t kill them often, if at all. There is no reason for anyone to put up with any more of this bull****. After almost a year and a half of being gaslighted, lied to up and down the line by every so-called “expert” under the sun, having treatments suppressed to the point that discussing them gets you thrown off social media sites and doctors sanctioned or threatened with loss of their licenses and professional associations please explain to me why the people of this nation haven’t gotten tired of their loved ones being deliberately sacrificed — that would be called murder, by the way — and shoved all of this bull**** up the government’s ass?

Nor is there any reason for anyone to get a jab for anyone else’s benefit; these are not fully-tested and documented products, no matter what someone tries to tell you and again, the FDA’s own documents in the form of the actual EUAs say so. Any claim otherwise is ALSO a lie; these shots are lightly tested and there is plenty of evidence that more than one of the original safety claims made for them are now known false. [..] where are the life insurance companies? If there’s one group of people who have their crap dialed in when it comes to who’s going to die and how often it’s those folks. Oh not you specifically of course, but statistically, you bet. These companies do not lose money and they don’t make stupid bets either. Every one of their bets collects a small amount of money and when they’re wrong very large amounts go out their door. If they are not changing rates and forcing jabs to get coverage or surcharging you if you don’t get the jab then this much is absolutely certain: Covid-19 is non-event from a life insurance perspective — in other words, whether they think you’ll die of it.

Read more …

Drown them in ivermectin instead.

• Embattled Thailand Kicks Off Mass Vaccination Drive Against Covid-19 (RT)

Bangkok has started its mass vaccination campaign against Covid-19, with the government aiming to inoculate six million people in June alone, as a third wave surges and now accounts for 80% of all cases since the pandemic began. “The government will ensure that everyone is vaccinated,” Prime Minister Prayuth Chan-ocha said on Monday after a visit to a Bangkok inoculation center as the national vaccination program kicked off. Amid a third wave of the virus, which has seen case levels far exceed those of the first and second waves, the state is aiming to administer six million doses of AstraZeneca’s Covid-19 vaccine, which is being made locally, and China’s Sinovac shot in June. The government hopes to vaccinate 70% of the country’s 66 million people before the end of the year.


To date, only 2.8 million people have received one shot in an initial rollout targeting the most vulnerable, including frontline health and transport workers. The government has been heavily criticized by opposition parties for over-reliance on the AstraZeneca vaccine, which is being made by royal-owned Siam Bioscience. Concerns emerged that the company’s production capacity may have been overestimated after the Philippines said its order had been reduced and delayed. Bangkok has been forced to search elsewhere for more supply, sourcing 200,000 AstraZeneca vaccines from South Korea, and hopes to complete a 20-million-shot deal with Pfizer in the coming weeks. To date, Thailand has registered 179,886 infections and 1,269 fatalities from the virus, 80% of which has been recorded during the third wave. 2,419 new infections and 33 deaths were recorded on Monday.

Read more …

“..plenty of pretty young things on hand, only some of whom know a reverse repo from an Appenzeller Sennenhund..”

• Reset Yourself ! (Kunstler)

If Quentin Tarantino made a James Bond movie, the villain would be a maniac named Klaus Schwab, played with a light touch by Christoph Waltz, leading a SMERSH-like org bent on turning the world into a utopia of robots, and, of course, absolutely everything would go wrong, leading to a joyously comical bloodbath in the climax. Are we living in that movie, one wonders? In real life — is there even such a thing anymore? — Klaus Schwab is the octogenarian head of the World Economic Forum (WEF), the NGO that hosts the annual cavalcade of global villains at Davos, Switzerland, held every January in perfect designer snow, with the raclette melting temptingly on the hearth, endless flutes of Bollinger R.D. Extra Brut making the rounds, and plenty of pretty young things on hand, only some of whom know a reverse repo from an Appenzeller Sennenhund. Must be fun as all git-out.

The Davos meeting is ostensibly called to improve the state of the world (ha!), and thereby inspires countless paranoid fever dreams in the minds of many who would prefer to be spared utopian social experiments, especially from plans drawn by billionaire bankers who view the present surfeit of mankind on this planet (some 7.6 billion) as cluttering up the joint — all these unnecessary hoi polloi filling the oceans with their yukky plastic, making navigation difficult for the Davos yachting crowd… or something like that. Klaus Schwab has been shockingly literal about his wished-for utopia, summing up his vision as, “You will own nothing, and you will be happy about it.” Hmmm, no property… and then what? Logically, no corpus of contract law to regulate it? Farewell pesky US constitution. (Let’s face it, it’s been falling apart lately, anyhow.) How’s that going to make folks happy? Can I at least keep my Waterpik and my flyrod?

And what about your property Klaus? And the property of your nonagenarian buddy George Soros, including all the cash money he’s been sprinkling around the USA to fund the election of utterly incompetent Attorneys General and District Attorneys, so as to sow chaos in America’s streets? What about your pal Bill Gates’s property… those hundreds of thousands of acres he’s buying up across the American grain belt? And the half that goes to Melinda under California divorce law. Will the poor girl have to make those dreary trips to the Safeway on her own? Will there even be supermarkets? Or just distribution depots like the old soviet glory days, with long lines for schmoozing?

Read more …

“I want the dollar to be the currency of the world. That’s what I’ve always said.”

• Trump Calls Bitcoin Scam, Denounces It For Competing Against The Dollar (RT)

Former President Donald Trump called bitcoin a probable “scam” on Fox Business, Monday, complaining that it’s competing against the US dollar, which he wants to be the “currency of the world.” During an interview on Fox Business, host Stuart Varney asked Trump for his thoughts on the popular cryptocurrency and whether he would invest in it. “Bitcoin, it just seems like a scam,” Trump declared, adding, “I don’t like it because it’s another currency competing against the dollar.” “I want the dollar to be the currency of the world. That’s what I’ve always said.” Trump has repeatedly shot down cryptocurrencies in recent years, accusing them of facilitating “unlawful behavior, including drug trade and other illegal activity.”


“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” he said on Twitter in July 2019. “We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!” Trump’s presidential administration also attempted to crack down on cryptocurrency through regulations last year as one its final acts ahead of President Joe Biden’s inauguration.

Read more …

“Since we are a market economy, we cannot just order: stop using dollars..”

• Dumping The Dollar: Russia Ready To Shift Currency Liquidity To The Euro (RT)

Russian authorities are planning to shift the nation’s currency liquidity from the US dollar to the euro, the country’s Finance Ministry announced on Monday. “Our number one goal is to turn Russia into a euro-oriented country, thus to replace the dollar with the euro,” said Dmitry Timofeev, head of the department of external restrictive measures control at the Russian Finance Ministry. The official noted that Russia has every reason for the move, adding that the government is preparing a wide range of incentives for businesses to transition to the European single currency. “Since we are a market economy, we cannot just order: stop using dollars,” Timofeev said, though he added that some state-owned corporations might be forced to shift.


“We need to develop the necessary tools in a single package to move the entire economy further away from the dollar, which, in fact, will allow us to avoid sanctions and make the world more democratic,” he added. The announcement comes days after Russian Finance Minister Anton Siluanov said that the National Wealth Fund would reduce its share of dollars to zero within the next month. Meanwhile, Russian Deputy Prime Minister Alexander Novak warned that Russia may soon be tempted to move away from dollar-denominated crude contracts if the US administration continues to pile up targeted economic sanctions.

Read more …

“Biden is well-prepared to answer for this when he soon visits Europe since, of course, he was deeply involved in this scandal the first time around.”

• The Coming Biden/Putin Train-Wreck Summit (Ron Paul)

I have my doubts whether the Putin-Biden summit in Geneva will take place later this month, but even if somehow it is pulled off, recent Biden Administration blunders mean the chance anything of substance will be achieved is virtually nil. The Biden Administration was supposed to signal a return of the “adults” to the room. No more bully Trump telling NATO it’s useless, ripping up international climate treaties, and threatening to remove troops from the Middle East and beyond. US foreign policy would again flourish under the steady, practiced hands of the experts. Then Biden blurted out in a television interview that President Putin was a killer with no soul. Then US Secretary of State Antony Blinken discovered the hard way that his Chinese counterparts were in no mood to be lectured on an “international rules-based order” that is routinely flouted by Washington.

It’s going to be a rough ten days for President Biden. Just as news breaks that under the Obama/Biden Administration the US was routinely and illegally spying on its European allies, he is preparing to meet those same allies, first at the G7 summit in England on June 11-13 and then at the June 14th NATO meeting in Brussels. Make no mistake, Joe Biden is up to his eyeballs in this scandal. Ed Snowden Tweeted late last month when news broke that the US teamed up with the Danes to spy on the rest of Europe, that “Biden is well-prepared to answer for this when he soon visits Europe since, of course, he was deeply involved in this scandal the first time around.”

Though Germany’s Merkel and France’s Macron have been loyal US lapdogs, the revelation of how Washington treats its allies has put them in the rare position of having to criticize Washington. “Outrageous” and “unacceptable” are how they responded to the news. Russia has been routinely accused (without evidence) of malign conduct and interference in internal US affairs, but it turns out that the country actually doing the spying and meddling was the US all along – and against its own allies! Surely this irony is not lost on Putin.

Ron Paul Walensky

Read more …

“That would immediately raise the question of the US initiating nuclear war against China to prevail in that situation..”

• Daniel Ellsberg: The 90-Year-old Whistleblower Tempting Prosecution (BBC)

While the Pentagon Papers left a lasting legacy, they weren’t the only documents Mr Ellsberg got his hands on. At the same time, Mr Ellsberg copied another classified study that showed how seriously American military chiefs took the threat of nuclear war during the Taiwan crisis of 1958. For 50 years, the study went virtually unnoticed until 2017, when Mr Ellsberg published the full document online, which was highlighted by the New York Times newspaper last month. In theory, Mr Ellsberg’s disclosure could put him at risk of prosecution on the same charges he faced for leaking the Pentagon Papers. Now aged 90, Mr Ellsberg says he is not intimidated by the possibility of prison. In an interview with the BBC, he explained why.

[..] For decades, Mr Ellsberg has been a tireless critic of government overreach and military interventions. His opposition crystallised during the 1960s, when he advised the White House on nuclear strategy and assessed the Vietnam War for the Department of Defense. What Mr Ellsberg learned during that period weighed heavily on his conscience. If only the public knew, he thought, political pressure to end the war might prove irresistible. The release of the Pentagon Papers was a product of that rationale, which underpins Mr Ellsberg’s latest disclosure, albeit in a different context. “I want to do my part in avoiding nuclear war,” Mr Ellsberg said from his home in California. In his assessment, a nuclear war over Taiwan is a serious threat. To understand why, consider the unsettled question of Taiwan’s relationship to China.

China has asserted sovereignty over Taiwan since the end of the Chinese civil war in 1949. Since then, China has regarded Taiwan as a rebel province that must be reunited with the mainland – by force if necessary. As Taiwan’s most-important ally, the US would be expected to take action if China did attack the island. “War games appear to show that the Chinese would win a conventional war over Taiwan and against the US,” Mr Ellsberg said. “That would immediately raise the question of the US initiating nuclear war against China to prevail in that situation, just as US decision-makers committed themselves to doing if it was necessary in 1958.” In the end, it was not necessary in 1958. But what material released by Mr Ellsberg shows, in sobering detail, is why American military leaders believed it might have been.

Read more …

 

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, you are now not just a reader, but an integral part of the process that builds this site. Thank you for your support.

 

 

Georgestradamus

 

 

 

 

Support the Automatic Earth in virustime. Click at the top of the sidebars to donate with Paypal and Patreon.

 

Debt Rattle September 22 2020

Sep 222020
 
 September 22, 2020  Posted by at 9:09 am Finance Tagged with: , , , , , , , , , , , ,  21 Responses »


Ray K. Metzker Marseille 1961

 

• Assange’s Removal From Embassy Was on ‘Direct Orders From US President’ (Sp.)
• 160 Officials From Across The World Call For Assange’s Release (NBC)
• A Second UK COVID19 Lockdown Is Doomed To Fail: Brits Won’t Comply (RT)
• CDC Stumbles Again, Says COVID19 Guidance Posted ‘In Error’ (NBC)
• China, WHO Could Have Helped Prevent Pandemic: Congressional Report (NYP)
• Lancet Changes Editorial Policy After HCQ Study Retraction (G.)
• Ballot Harvesting Party Will Be Over if Tulsi Gabbard Gets Her Way (NM)
• Trump Says Aides Rejected His Request To Adjust Value Of Dollar (R.)
• European Bank Stocks Swoon to 1988 Low (WS)
• Virgin Islands AG Subpoenas Entirety Of Epstein Flight Logs (RT)
• Kennedy’s US-Russia Joint Space Vision Must Be Revived (Ehret)
• Activist Warns Left: Trump Might Pick First Black Female Justice (JTN)
• Trump Fires Giant Pink Glitter Cannon To Reveal SCOTUS Nominee Gender (BBee)

 

 

1 million global deaths is not far off. Expect a ton of publicity.

 

 

 

 

 

 

 

 

Cassandra is a Trump supporter – but an even stronger Assange supporter- who just proved that the trial is political. Which means Julian cannot under British law be extradited. Or at least that’s what the law says.

• Assange’s Removal From Embassy Was on ‘Direct Orders From US President’ (Sp.)

Journalist Cassandra Fairbanks has informed the court in Julian Assange’s extradition hearing that Arthur Schwartz, who is known as Donald Trump Jr’s “fixer”, had advance warning of the US indictment against the WikiLeaks publisher. Julian Assange’s removal from the Ecuadorian Embassy was done so “on direct orders from the [US] president”, according to information provided to American journalist Cassandra Fairbanks. Ms Fairbanks’ explosive testimony would appear to support to position that Mr Assange’s prosecution has a political dimension and reflected a shift in the government’s attitude with a change in administration from that of former president Barack Obama.

According to Ms Fairbanks’ witness statement, which was read into the court by the defence in Mr Assange’s extradition hearing on 21 September 2020, she was contacted by Arthur Schwartz, “a wealthy GOP donor who does communications for [former Ambassador to Germany Richard Grenell] and works as an informal adviser to Donald Trump Jr”. During this phone call, which Ms Fairbanks recorded, Mr Schwartz was panicking because he believed a Tweet that she published revealed “classified information”. Ms Fairbanks attempted to calm down Mr Schwartz saying that she didn’t publish classified information and that she merely shared a link to a report from ABC news which described the role that Mr Grenell played in coordinating Mr Assange’s release.

Mr Schwartz was not put at ease by Ms Fairbanks’ assurances and asked her to delete the Tweet. “I don’t want to go to prison” Mr Schwartz told Ms Fairbanks, adding that people are aware of the fact that the two have been communicating with each other and have been seen with each other. Mr Grenell was acting “on the orders from the president” Mr Schwartz can be heard saying during the recorded conversation. “So, you’re going to punish me because he took orders from the president?” he asked Ms Fairbanks who responded that she wasn’t punishing him she was merely retweeting a report by ABC. Mr Schwartz begged Ms Fairbanks to delete the Tweet which she ultimately agreed to do. Ms Fairbanks is a contributor to the Pro-Trump Gateway Pundit news outlet and she notes that she herself “endorsed [Mr Trump’s] presidency over a number of years”.

Her witness statement says that she “believed Schwartz’s statement [that Mr Grenell coordinated Mr Assange’s removal from the embassy] to be correct because his close personal ties to both President Trump and Grenell are well-known”. The statement also says that her interactions with Mr Schwartz, on the subject of Mr Assange and WikiLeaks, first began after she dropped a link to an interview with Mr Assange’s mother, Christine Assange, into “a direct message group [in October 2018] containing multiple people who either worked for President Trump or were close to him in other ways – along with several other reporters and political commentators”. Among those in the group were then US Ambassador to Germany Mr Grenell as well as Mr Schwartz.

After she put the link to the interview into the group chat, Ms Fairbanks’ statement says that she received a phone call from Mr Schwartz who was “very angry”: “[Mr Schwartz] repeatedly insisted that I stop advocating for WikiLeaks and Assange, telling me that ‘a pardon isn’t going to f**king happen.’ He knew very specific details about a future prosecution against Assange that were later made public and that only those very close to the situation then would have been aware of. He told me that it would be the ‘Manning’ case that he would be charged with and that it would not involve the Vault 7 publication or anything to do with the DNC. He also told me that they would be going after Chelsea Manning. I also recollect being told, I believe, that it would not be before Christmas. Both of these predictions came true just months later.”

“Kidnapping a political refugee” from the Ecuadorian Embassy would be “an act of war”, Ms Fairbanks said to Mr Schwartz, to which he apparently responded “not if they let us”.

Read more …

Is the mainstream press getting involved now?

• 160 Officials From Across The World Call For Assange’s Release (NBC)

More than 160 current and former world leaders, lawmakers and diplomats have endorsed a call for the U.K. to free WikiLeaks founder Julian Assange and stop his extradition to the U.S. The signatories of the open letter, addressed to U.K. Prime Minister Boris Johnson and several government ministers, included the president of Argentina and two former presidents of Brazil, Dilma Rousseff and Luiz Inacio Lula da Silva. [..] The letter was first written by the group Lawyers for Assange in August, and then received the support of the international signatories whose names were released on Monday. It laid out several legal reasons why Assange shouldn’t be extradited, including the claim that he wouldn’t face a fair trial in the U.S., and that he would “be exposed to torture or other cruel, inhuman or degrading treatment or punishment.”

His extradition “would gravely endanger freedom of the press,” the letter said. “This demonstrates the growing opposition around the world to U.S. efforts to extradite and prosecute Assange, and the political nature of this case,” Assange’s lawyer, Jennifer Robinson, told NBC News. Many of the letter’s signatories, which also include Venezuelan leader Nicolás Maduro and former Ecuadoran leader Rafael Correa, are fierce critics of the U.S. and have previously spoken out against American foreign policy. Last week, Robinson told a London court that Assange was offered a presidential pardon in 2017 by then-Rep. Dana Rohrabacher, R-Calif., and Trump associate Charles Johnson if he helped to resolve the “ongoing speculation about Russian involvement” in the hacking of Democratic National Committee emails leaked during the 2016 U.S. election campaign.

At the hearing in London on Friday, James Lewis, prosecutor for the U.S. government, said: “The position of the government is we don’t contest these things were said. We obviously do not accept the truth of what was said by others.”

Read more …

What you gonna do? Arrest them all and throw them into virus-infected prisons?

• A Second UK COVID19 Lockdown Is Doomed To Fail: Brits Won’t Comply (RT)

Now armed with statistics and expert advice, the British public are much better informed about Covid than in March and won’t countenance another lockdown imposed by politicians who have mishandled the pandemic at every turn. A looming second lockdown in the UK, as part of the Government’s haphazard approach to dealing with the coronavirus pandemic, is destined to fail for one reason: the revered ‘Blitz spirit’ that we’re all in this together has vanished. Now it’s everyone for themselves. For several days now, there has been talk of another imminent imposition of harsh restrictions on our movement. While the first national lockdown was universally accepted, any follow-up – call it ‘a circuit breaker’ or whatever clever name you like – is going to be a little trickier.

Look at what’s happened in Madrid over the weekend, where a wave of protests hit the Spanish capital with people taking offence at the regional president’s efforts to reduce an infection rate in some areas of more than 1,000 per 100,000 by restricting the movements of 850,000 people. And when Isabel Dìaz Ayuso bluntly suggested it was the “way of life” of the immigrants living in those neighbourhoods that was contributing to the problems, the mob insisted she resign. What for? Trying to keep them safe? Remember, Spain had a draconian three-month lockdown that saw kids shut up indoors over summer, but they recognised they were all in it together and stuck to their guns. Now that spirit has dissolved, as people claim the government is spreading fear and hatred among already marginalised communities. Attention has turned away from battling the pandemic to fighting among themselves.

That easygoing compliance has hardened in the UK as well. We’re not so accepting of the words coming from the familiar Downing Street podium these days. Because we’ve now had months of expert home tutoring by the impressive duo of government scientists Chris Whitty and Patrick Vallance, whose careful, measured explanations and predictions have driven the real narrative behind the boosterism of the government’s “moonshots” and “world-beating” boasts. Last week it was Boris Johnson telling us it would all be over by Christmas. Now Health Secretary Matt Hancock says maybe not. That kind of ‘he said, she said’ nonsense is a test to anyone’s patience, but you can see where the desperate-to-be-loved PM is coming from. People want a return to normal, even if that ‘normal’ is different to what we are used to, and BoJo is keen to be the one to deliver the good news.

Read more …

And Americans won’t comply either, thanks to BS like this.

It is really only yesterday that I said: “Do they still have any credibility left? You know, after Redfield’s “Act for one Man and one Mask”?”

• CDC Stumbles Again, Says COVID19 Guidance Posted ‘In Error’ (NBC)

The Centers for Disease Control and Prevention on Monday walked back information posted on its website just three days ago, which stated the coronavirus can spread through aerosolized droplets. The CDC now says that Friday’s guidance was posted “in error,” and that new information will be issued shortly. The move is yet another misstep for the nation’s leading public health agency, which recently reversed its guidance for the second time on testing asymptomatic people for the coronavirus. On Friday, an update posted to the CDC’s website stated the virus can be transmitted through tiny, aerosolized droplets that are “produced when an infected person coughs, sneezes, sings, talks, or breathes.”

That information was already well known, according to infectious disease experts. It was “not surprising or jarring,” Dr. Jill Weatherhead, an assistant professor of infectious diseases at Baylor College of Medicine in Houston, said. “The scientific community has been raising the alarm about this since February, that airborne spread can happen,” said Joseph Allen, an associate professor in the department of environmental health at the Harvard T.H. Chan School of Public Health. So infectious disease experts were perplexed Monday, when the CDC scrubbed that section of the website of any mention of airborne transmission, writing that “a draft version of proposed changes to these recommendations was posted in error to the agency’s official website.”

[..] “This is so destructive to this incredibly wonderful agency that we have loved and admired our entire careers,” Dr. Ashish Jha, dean of the school of public health at Brown University, said. “This is amateur hour.” Science evolves and is guided by what doctors and researchers learn over time, but clear messaging is critical to a proper public health response to the virus. “The CDC is like a North Star in terms of guiding this pandemic,” Weatherhead said. “It’s important that there is clear and concise communication so that everybody is on the same page.” “Hopefully we will get communication from the CDC to better understand why they’re walking back on what we already know to be factual,” she added.

Read more …

An overly polite headline. It doesn’t include “criminally negligent”.

• China, WHO Could Have Helped Prevent Pandemic: Congressional Report (NYP)

The coronavirus pandemic might have been prevented if not for Chinese cover-ups in the early days of the outbreak and the World Health Organization “parroting” Beijing propaganda, according to a damning audit from the House Foreign Affairs Committee. The 96-page report — obtained by The Post ahead of its planned Monday release — says the Chinese Communist Party destroyed evidence and buried troubling data, while nationalizing the supply chains and limiting exports of US companies 3M and General Motors, keeping key goods in the country.

“It is beyond doubt that the CCP actively engaged in a cover-up designed to obfuscate data, hide relevant public health information, and suppress doctors and journalists who attempted to warn the world,” reads the report, authored by Republican members of the Democrat-held committee. Had China been more transparent and proactive when the first signs of the burgeoning health crisis emerged in Wuhan in late 2019, the outbreak could have been largely contained — potentially saving hundreds of thousands of lives worldwide, the pols wrote.

“Research shows the CCP could have reduced the number of cases in China by up to 95 percent had it fulfilled its obligations under international law and responded to the outbreak in a manner consistent with best practices,” the report said, citing a study on Medrxiv, a Yale University-linked online clearinghouse for medical manuscripts. “It is highly likely the ongoing pandemic could have been prevented,” the report said. Instead, on Jan. 1, CCP officials ordered that the Wuhan wet market from which the contagion is believed to have sprung “be closed and sanitized, destroying forensic evidence that may have provided insight into the origins of the outbreak,” the report said.

Read more …

It was a classis hit job from the start. And the Lancet bought and swallowed it whole. But HCQ remains banned in many places, so it worked.

• Lancet Changes Editorial Policy After HCQ Study Retraction (G.)

One of the world’s leading medical journals, the Lancet, has reformed its editorial policies following a shocking case of apparent research misconduct involving the study of hydroxychloroquine as a treatment for Covid-19. In May, the Lancet published a peer-reviewed study about the controversial drug hydroxychloroquine, which concluded Covid-19 patients who received the drug were dying at higher rates and experiencing more heart-related complications than other virus patients. The large observational study analysed data purported to be from nearly 15,000 patients with Covid-19 who received the drug alone or in combination with antibiotics, comparing this data with 81,000 controls who did not receive the drug.

This data was recorded by hospitals around the world in a database by a US data analytics company known as “Surgisphere”, the Lancet paper said. The findings prompted the World Health Organization to halt its clinical trials of the drug, given the paper’s findings that it was linked with deaths and complications. But days after the paper was published, Guardian Australia revealed issues with the Australian data in the study. Figures on the number of Covid-19 deaths and patients in hospital cited by the authors did not match up with official government and health department data. Senior clinicians involved in Covid-19 research told Guardian Australia they had never heard of the Surgisphere database.

Researchers from other countries identified similar issues with the data from their hospitals, and a further Guardian Australia investigation revealed doubts that the database used by the study authors likely did not even existed. Sapan Desai was a co-author of the paper and founder of the Surgisphere database. Following the revelations, information about Surgisphere was deleted from the internet. It was also revealed that none of the co-authors of the paper had seen the Surgisphere data for themselves, and they said that Desai did not give them access to it even after questions about the paper were raised by Guardian Australia and the research community. The paper’s co-authors, which included a highly respected vascular surgeon, supported the retraction of the paper and distanced themselves from the data.

Read more …

Go Tulsi!

• Ballot Harvesting Party Will Be Over if Tulsi Gabbard Gets Her Way (NM)

Ballot-harvesting is a voting related practice allowing paid political operatives to collect an unlimited number of ballots, subsequently delivering them into the hands of election officials. Rep. Tulsi Gabbard, D-Hawaii, recently introduced legislation, The Election Fraud Prevention Act, which if passed would effectively slow down or even put a halt to the practice. The legislation could potentially be in effect in time for November’s all-important 2020 presidential election. When Rep. Gabbard made her run for the Oval Office during the Democratic presidential primaries, the public learned that she was a proud member of the Army National Guard, having served in two Mideast deployments. Currently, she is a major in the Army Reserves.


Rep. Gabbard’s proposed legislation, which is co-sponsored by Rep. Rodney Davis, R-IL, would amend a 2002 act, and if passed would deny certain federal payments to states that permit ballot harvesting. This type of reform could go a long way in helping to prevent a particularly heinous kind of corruption of the electoral process. If ballot-harvesting remains in place, or worse, if its use becomes widespread nationally, special interest groups aligned with a particular candidate or political party may be able to manipulate the results of legitimate elections. As Rep. Gabbard noted, “While some states have prohibited vote harvesting, many states lack any regulations that would stop third-parties from fraudulently collecting and mishandling ballots as has occurred in recent elections.”

Read more …

‘Sir, we can’t do that. It has to float naturally.’

There are actually people who react to this by saying Trump didn’t know the dollar floats.

• Trump Says Aides Rejected His Request To Adjust Value Of Dollar (R.)

U.S. President Donald Trump on Monday said he was rebuffed when he asked officials to adjust the exchange rate of the dollar to counteract what he described as repeated currency manipulation by China of its yuan. Trump told thousands of supporters at a political rally in Dayton, Ohio, that his policies were saving jobs in the political battleground state after years of inaction to confront China’s aggressive behavior in global markets. “I go to my guys, ‘What about doing a little movement on the dollar?’” he said, but they countered that was not possible. “‘Sir, we can’t do that. It has to float naturally.’”

The Republican president, who is seeking reelection to a second term in the Nov. 3 national poll, repeated his claim – which China denies – that Beijing deliberately changes the value of its currency to gain competitive advantage in global markets. China’s central bank has denied intervening to weaken the yuan and lower the cost of its exports to the United States. The yuan has firmed for eight weeks straight against a softening dollar. Trump gave no details on his conversation about tweaking the dollar’s value, and no comment was immediately available from the U.S. Treasury Department, which is expected to release its long-delayed semi-annual currency report in coming weeks.

[..] Trump in May reversed course and backed a “strong dollar” after years of railing against the dollar’s relative strength as a factor harming U.S. competitiveness. The Treasury Department in January dropped its designation of China as a “currency manipulator”, days before U.S. and Chinese officials signed the Phase 1 trade deal, saying Beijing had agreed to refrain from competitive devaluation.

Read more …

How many arrests so far?

• European Bank Stocks Swoon to 1988 Low (WS)

The Stoxx 600 Banks index, which covers major European banks, slumped 5.7% on Monday, to close at 81.1, just a smidgen above the multi-decade low, of 79, set in March. The last time before March that the index was below today’s level was in February 1988, during the sell-off that followed Black Monday in October 1987, when it also slumped as low as 79. The index has collapsed by 85% since its peak in May 2007, after having quadrupled over the preceding 12 years. Here are the wondrous European bank stocks going back to 2007:

Not even the promise of more industry consolidation, facilitated by shotgun mergers of big, struggling banks with smaller struggling banks, has stemmed the slide of Europe’s banking shares. Three weeks ago, Spain’s third largest lender, CaixaBank, announced plans to buy majority state-owned Bankia, with money largely provided by the State, to form what will be Spain’s largest domestic bank. Spain’s MSCI rose only slightly in response and is now lower than it was. Today, it wasn’t just banking stocks that had a rough day. European stocks overall were down by 3.9%, as concerns grow over a second wave of the coronavirus. But banks were particularly hard hit.


One reason for the rout was the release of a report by the International Consortium of Investigative Journalists on lenders that had facilitated $2 trillion in suspicious transactions. HSBC, Deutsche Bank, Standard Chartered, JPMorgan Chase, and Bank of New York Mellon, were implicated. Over almost two decades, the five banks had “enrich[ed] themselves and their shareholders while facilitating the work of terrorists, kleptocrats, and drug kingpins,” the report said.

Read more …

I wouldn’t put any money on her actually getting them. Unredacted. National security, don’t you know.

• Virgin Islands AG Subpoenas Entirety Of Epstein Flight Logs (RT)

The US Virgin Islands Attorney General has subpoenaed 21 years’ worth of deceased pedophile Jeffrey Epstein’s flight logs, reportedly striking fear in the hearts of high-profile passengers not yet exposed as Lolita Express riders. Passenger logs for Epstein’s four helicopters and three planes have been subpoenaed by Virgin Islands AG Denise George, who recently sued the disgraced financier’s estate for 22 counts including human trafficking, child abuse, neglect, prostitution, aggravated rape, and forced labor, according to a Sunday report by the UK Mirror. In addition to the passenger lists, George has requisitioned “complaints or reports of potentially suspicious conduct” and any “personal notes” the pilots made while flying Epstein’s alleged harem of underage girls around the world.

She also wants the names and contact information of anyone who worked for the pilots – or who “integrated with or observed” Epstein and his passengers. Epstein pilot David Rodgers previously provided a passenger log in 2009 tying dozens of politicians, actors, and other celebrities to the infamous sex offender – including former US President Bill Clinton, actor Kevin Spacey, and model Naomi Campbell. However, lawyers for Epstein’s alleged victims have argued that list did not include flights by Epstein’s chief pilot, Larry Visoski, who allegedly worked for him for over 25 years. “The records that have been subpoenaed will make the ones Rodgers provided look like a Post-It note,” a source told the Mirror over the weekend, claiming that George’s subpoena had triggered a “panic among many of the rich and famous.”

Epstein’s private plane, nicknamed the Lolita Express, counted among its passengers such luminaries as the UK’s Prince Andrew, celebrity lawyer Alan Dershowitz, actor Chris Tucker, Harvard economist Larry Summers, Hyatt hotel mogul Tom Pritzker, and model agency manager Jean-Luc Brunel along with Campbell, Spacey, and Clinton (who the logs show flew with Epstein over two dozen times). However, the passengers who enjoyed his other aircraft have not been made public – yet. George has also subpoenaed more than 10 banks – including JPMorgan, Citibank, and Deutsche Bank – in her quest to get to the bottom of the financial edifice Epstein built up before he died. The financial institutions have been ordered to submit documents related to some 30 corporations, trusts, and nonprofit entities tied to the predatory playboy.

Read more …

How did we ever get from Kennedy to Russiagate?

• Kennedy’s US-Russia Joint Space Vision Must Be Revived (Ehret)

September 20th marked the anniversary of the last speech John F Kennedy delivered to the United Nations’ General Assembly. This event bears more relevance upon our present crisis than most people could possibly imagine. This is true not only because it is wise to pay homage to great ideas of the past which lesser souls allowed to slip away and get buried under the sands of time, but also because history provides many of the solutions to seemingly impossible problems in our own time. During his short speech, Kennedy outlined the very same fundamental obstacles to survival faced by our own world 57 years later: “The spectre of nuclear annihilation looming overhead, poverty and the evils of colonialism staining humanity on earth, and the dominance of destructive modes of thinking which have prevented honest dialogue between the west and east who have so many common interests and yet have been blocked from acting upon them for want of creativity, understanding and faith.”

Although it is far too rarely displayed in history, great leaders (those who are beholden to their consciences) recognize that there are solutions to every problem. From Plato to Cicero to Confucius and Christ in ancient times or Thomas More, Benjamin Franklin, Lincoln, and Kennedy in our modern age, these rare but vitally important individuals demonstrate through their words and deeds that when the dominant social rules of the game prevent those necessary and possible solutions from manifesting, then only one course of action becomes possible: Change the rules of the game. The martyred Israeli Prime Minister Yitzhak Rabin eloquently touched on this truth in 1992 shaking the hands with Yasser Arafat and advancing a two-state solution saying: “The future belongs to those who have the courage to change their axioms.”

Such was the case of John F. Kennedy who recognized early on in his short-lived presidency that the geopolitical “closed system” thinking dominant among the military and foreign policy experts of the west held only the seeds for humanity’s destruction. In his speech of September 20, 1963, Kennedy revisited a theme which he first unveiled on the day of his inaugural address in 1961: A joint U.S.-USSR space program to transform the rules of the Cold War and usher in a new creative age of reason, win-win cooperation and boundless discoveries. In his 1961 inaugural speech, Kennedy ushered in the theme that would animate his next three years saying:

“Together let us explore the stars, conquer the deserts, eradicate disease, tap the ocean depths and encourage the arts and commerce. Let both sides unite to heed in all corners of the earth the command of Isaiah–to “undo the heavy burdens . . . (and) let the oppressed go free.” Ten days later, Kennedy re-iterated this idea during his first state of the Union inviting Russia “to join with U.S. in developing… a new communication satellite program in preparation for probing the distant planets of Mars and Venus, probes which may someday unlock the deepest secrets of the universe”.

Read more …

Wait a minute. That was my line.

• Activist Warns Left: Trump Might Pick First Black Female Justice (JTN)

An activist group formally launched the “She Will Rise” campaign Monday to call for an African American female judge to be nominated to the Supreme Court. A supporter of the group, Nikole Hannah-Jones, who authored The New York Times’ 1619 Project, warned that President Trump might be the president who picks the first black female justice following the death of Supreme Court Justice Ruth Bader Ginsburg. “I think this is a case of be careful what you wish for because it’s certainly possible that Trump could appoint a black women but it’s also very possible it could be just as cynical as it was when the second black Supreme Court justice became Clearance Thomas,” she said during a discussion organized by the nonprofit advocacy group Demand Justice.


“You can certainly find a black woman who is extremely conservative; who is a strict constructionist; who is going to align with the most conservative people on the court and that again will be a hollow victory. In some ways, again, that is a very cynical choice because it puts black people in the position of having to argue against the first black woman to go on the bench because the first black woman is not someone who we feel will actually serve our communities well so yeah, that’s possible,” she also said. Trump said this past weekend that he would nominate a female to fill Ginsburg’s seat. Some African American male judges appear on Trump’s public shortlist of potential Supreme Court nominee, but there are currently no African American female judges included. A hispanic female and male judge are on his list.

Read more …

And then finally there’s the good news, courtesy of the Babylon Bee.

• Trump Fires Giant Pink Glitter Cannon To Reveal SCOTUS Nominee Gender (BBee)

It was a festive occasion, as gender reveals often are, and a crowd brimming with excitement gathered outside the White House to find out from President Trump what gender the nominee for Supreme Court Justice would be. “Oh I sure hope it’s a boy!” yelled one man. “No way! It has to be a girl!” yelled a nearby woman. However, some unhappy citizens gathered in the crowd only to protest how primitive and cis-heteronormative a gender reveal party for a Supreme Court Justice is. “This is so backwards,” yelled local non-binary furry queen-king Yoox Bellavix. “The nominee hasn’t even been questioned by the Senate to determine what gender they identify with! Gender is not the same as biological sex! We need hearings now!”


Trump suddenly appeared on the White House lawn and greeted all the gathered crowd with a wide beaming smile like that of an expectant father. “Thank you, ladies and gentlemen and Democrats and Fake News media! I am very happy, so very happy, I don’t even remember the last time I was this happy, to announce the gender of our nominee to fill the seat!” he said. The crowd erupted in joyous applause as the Secret Service rolled out a giant wheeled cannon similar to a civil war artillery piece and pulled the trigger to send an enormous cloud of pink glitter into the air. “Of course it’s a girl! It’s a girl!” Trump said as he made an hourglass curve gesture with his hands. “Tremendous. Thank you very much!”

At publishing time, all the assembled media figures stood completely covered in pink glitter. The White House lawn is also entirely covered. The EPA estimates it could take up to 12 years for the pristine swamp environment of the White House lawn to return to normal.

Read more …

 

 

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, you are now not just a reader, but an integral part of the process that builds this site.

Thank you for your support.

 

 

 

 

Support the Automatic Earth in virustime.

 

What? Default? Where? Dollar?

Jul 262020
 
 July 26, 2020  Posted by at 6:27 pm Finance Tagged with: , , , , , , , , , , , , ,  14 Responses »


Elaine de Kooning Fairfield Porter #1 1954

 

 

It won’t come as a surprise to anyone that the first half of 2020 has brought, among many other things, renewed calls for the demise of the US dollar. It’s been pretty much a non-stop call for over a decade now, and longer. But this time, like all previous ones, I’m thinking: I don’t see it. I guess my first question is always: please explain why the dollar would collapse before the euro does.

For one thing, the dollar would have to collapse/default against one or more “entities”. The dollar is not like one of those highrises that collapse upon themselves. It will have to default or collapse against something(s) else. Since it is the world reserve currency, that means there would have to be a replacement reserve currency. Yes, that could also be for example gold or SDR’s, or even a basket of currencies, and something like that may happen eventually, but it doesn’t appear in the cards in the short run.

There are really only two candidates for the role, and neither looks at all fit to play it. The euro may have some ambitions in that direction, but it has far too many problems still. The yuan/renminbi certainly has such ambitions, but the Communist party refuses to let it get on stage to show what it’s got. As I recently wrote:

 

The main sticking point for Beijing is a conundrum it cannot solve. The CCP wants to have BOTH a global currency AND total control over that currency. It will have to choose between the two, and cannot make up its mind. So it pretends it doesn’t have to choose. Sure, there has been some advancement for the yuan, but I bet most of that is on the back of the Belt and Road (BRI), and that will turn out to be one of the main victims of the coronavirus. The BRI is China’s very clever way of exporting its overproduction, but potential buyers have other things on their mind today.


Meanwhile, even with that, the yuan is used in only 1.8% of cross-currency payments. [..] The sudden, and rushed, take-over of Hong Kong with the new security law will not help China’s plans to be accepted internationally. [..] The world’s large investors will not put their money into something that Xi Jinping can declare devalued by 50% on a rainy morning when he sees fit. He will have to cede that kind of control.

The euro has made some gains vs the USD recently, going from 1.07 to 1.16 or so, but that means very little once you look at the broader picture. Moreover, the reason the financial press provides for -much of- those gains, which is that the EU supposedly showed “unity” in its recent Recovery Fund talks, is bollocks.

If it showed one thing, it was a lack of unity. That’s why these were the longest talks they ever had. And if this had not been Angela Merkel’s last hurrah, they might not have agreed at all. They paid off the Frugal Four to the tune of hundreds of millions, and that’s how they got a deal. Horse traders.

A simple screenshot from Bloomberg of the USD vs EUR over the last five years makes clear why the recent changes are no big deal. (All BBG screenshots are from July 24 just before 10 AM EDT and all cover a 5 year period.)

 

 

A reserve currency has two roles: being the currency that most international trade is conducted in, and -closely related- being the currency that countries hold most as foreign exchange (FX) reserves. After WWII, the US dollar became the most important currency for trade more or less by default, a position that it greatly strengthened with the petrodollar.

A 2015 SWIFT paper provides details about the US dollar’s share of international trade:

The US dollar prevails as the dominant international trade currency, with a 51.9% share of the value of international currency usage in 2014. The euro is second, with a 30.5% share of the total value. The British pound is third, with a 5.4% share of the total value, followed by Asian currencies such as the Japanese yen and the Chinese yuan.

That’s from five years ago, but things won’t have changed much. The system is complex and inert, it has a very strong resistance against large and sudden changes. (Do note that the euro’s share of international trade is substantially skewed because it includes payments between countries that use the euro as their currency, plus those EU countries that don’t -yet-). Single market, international trade.

And then there’s the dollar’s FX role.

In September 2019, Eswar Prasad at Brookings reported that the dollar’s share of global FX reserves remains around 65%.

The drop from 66 percent in 2015 to 62 percent in 2018, is probably a statistical artifact related to changes in the reporting of reserves. Compared with 2007, however, the dollar’s share of global FX reserves has declined by 2 percentage points while the euro’s share is down 6 percentage points. Over this period, the Japanese yen’s share has risen by 2 percentage points, while other less prominent reserve currencies have increased their total share by 4 percentage points. The renminbi, which was not an official reserve currency in 2007, now accounts for 2 percent of global FX reserves. [..] .. the euro has stumbled, the renminbi has stalled, and dollar supremacy remains unchallenged.

[..] In July 2019, China’s total official reserve assets amounted to just over $3.2 trillion, of which $3.1 trillion (97 percent of the total) was held in the form of FX reserves. Gold holdings amounted to about $89 billion [..] Coming amid rising trade tensions with the U.S., the 5 percent increase in China’s gold stock and the 24 percent increase in the value of its official gold holdings during 2019 have been interpreted as a sign of China’s attempting to diversify its reserve holdings away from U.S. dollars.

If this interpretation was indeed correct, China has a long way to go. Gold now accounts for 3 percent of China’s gross international reserves. From a global financial market perspective, and especially relative to its overall international reserves, the $18 billion increase in the value of China’s gold reserves during 2019 is trivial; it barely registers as a shift in the composition of China’s overall reserves.

Assuming that China still holds 58 percent of its FX reserves in dollar-denominated assets, the value of those assets in July 2019 was $1.8 trillion. So, the value of its gold reserves, $94 billion, is a mere one twentieth of that of China’s dollar-denominated reserves.

With the euro and yuan out of the way as potential reserve currency candidates, we can take a look at gold. Senior commenter Dr.D at the Automatic Earth recently wrote: “As advertised, the US$ is defaulting. What? Where? US$ has been cut in half compared to Silver in 3 months. US$ has been cut in half compared to BTC in 3 months. US$ has been cut in half compared to Gold in 4 years.

Like many people talking about a USD demise, perhaps that’s too much of a dollar-centric view and conclusion. Surely gold and silver can rise vs the USD without announcing an imminent collapse of the latter. And since precious metals tend to go up in times of uncertainty, and COVID has brought shovels full of just that, you would expect them to rise.

Therefore you would have to also look at how they do vs for example the euro, before concluding anything. Note: I didn’t include Bitcoin because it’s too new and volatile. Makes me think of the Lindy Effect, often cited by Nassim Taleb, the idea that the older something is, the longer it’s likely to be around in the future.

Here are a few more Bloomberg screenshots. And yes, gold has done well vs the USD in, say, the past two years, no doubt.

 

 

But gold has pretty much followed the exact same pattern vs the euro:

 

 

Silver has done even better, more recently, vs the USD, though compared to where it was in 2016 it’s not that big a step (barely more than 10%):

 

 

And the pattern of silver vs the euro is so similar it’s almost eery.

 

 

I don’t see anything there that would make me think the dollar is collapsing, no more than the euro is. What I see is gold and silver rising. People move into precious metals, perceived as safe havens; they always do when the world is in turmoil. And don’t forget there are trillions in additional recent central bank money sloshing around that have to move somewhere.

As for the changes of the USD vs the euro: we’ve already seen that they are not exceptional. Losing a few percent vs the euro will not collapse the dollar.

Also, there’s something missing in the discussion as far as I’ve seen: the option that it’s the US itself that wants a lower dollar at this point in time, and actively works to get it lower. A strong dollar works for a strong economy, but not for one weakened by a pandemic and an acrimonious political climate.

But the US has borrowed so much money!, you say. Yes, but so have Europe, and Japan, and China, everyone has who could.

 

A little more about gold, since some are clamoring for a return to the gold standard. Which is not likely, because too many parties would resist, either for ideological or practical reasons. But say you would consider it, then you would as one of the first things you do, look at gold reserves. Here are the top ten gold holding countries per March 2020, as assembled by TradingEconomics.com:

 

 

Note: Britain is not there, because “Between 1999 and 2002 the Treasury sold 401 tonnes of gold – out of its 715-tonne holding – at an average price of $275 an ounce, generating about $3.5bn during the period.” (BBC). Gold is at $1,900 today. Nuff said.

The US gold reserves are so large it would appear to give them an unfair advantage if a gold standard were considered. Same as they have in the current set-up. Then again, if you insert population numbers into the equation, Germany, Italy, Switzerland, even the Netherlands, have more in relative terms. Question is: where does that leave all the others?

Long story short: I don’t see a US dollar default or collapse in the near future. But by all means enlighten me.

 

 

 

 

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, your support is now an integral part of the interaction you have with us.

Thank you.

 

 

It’s very bad luck to draw the line
On the night before the world ends
We can draw the line some other time

X – Some other time

 

 

Support the Automatic Earth in virustime.

 

Debt Rattle July 9 2020

Jul 092020
 
 July 9, 2020  Posted by at 10:21 am Finance Tagged with: , , , , , , , , , , ,  36 Responses »


Berenice Abbott Columbus Circle, Manhattan 1936

 

• US COVID19 Cases Rise By Over 60,000, Setting Single-Day Record (R.)
• The US Surrendered To The Pandemic. Protect Yourself (MoA)
• 53% Of Restaurants Closed Amid Coronavirus Have Shuttered Permanently (RD)
• United Airlines Sends Furlough Warnings To 36,000 Workers (R.)
• US Retail Apocalypse: Over 25,000 Stores Could Close By Year End (ZH)
• US Coronavirus Stimulus Reignites China’s Criticism Of Dollar Hegemony (SCMP)
• China’s Market Euphoria Trumps Political Risk In Hong Kong (R.)
• Some US Government Officials Want To Depeg Hong Kong Dollar (IBT)
• Surging Demand for Hong Kong Dollars Underscores Beijing Support (BBG)
• UK Judge Orders Christopher Steele To Pay Damages To Russian Bankers (RT)
• John Solomon: Indictments Coming In Russia Investigation (WND)
• Top US Commander Unconvinced By ‘Russian Bounty To Taliban’ Intel (RT)
• Most Americans Believe Russia Targeted US Soldiers (R.)

 

 

COVID, Hong Kong, Russiagate, they’re all familiar subjects. Now come ICU shortages and what can only be called a collapse in US -and international- retail, hospitality and travel industries.

We’re just getting started but everyone wants to think we’re almost done.

The US set a record for new cases, and the world missed it by a hair.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tennessee, West Virginia and Utah?!

• US COVID19 Cases Rise By Over 60,000, Setting Single-Day Record (R.)

The United States reported more than 60,000 new COVID-19 cases on Wednesday, the biggest increase ever reported by a country in a single day, according to a Reuters tally. The United States faces a bleak summer with record-breaking infections and many states forced to close parts of the economy again, leaving some workers without a paycheck. In addition to nearly 10,000 new cases in Florida, Texas reported over 9,500 cases and California reported more than 8,500 new infections. California and Texas also each reported a record one-day increase in deaths. It was the second day in a row that U.S. deaths climbed by more than 900 in a day, the highest levels seen since early June, according to the tally.


Tennessee, West Virginia and Utah all had record daily increases in new cases, and infections are rising in 42 out of 50 states, according to a Reuters analysis of cases for the past two weeks compared with the prior two weeks. The U.S. tally stood at 60,020 late on Wednesday, with a few local governments not yet reporting. The previous U.S. record for new cases in a day was 56,818 last Friday. The United States has reported over 3 million cases and 132,000 deaths from the virus, putting President Donald Trump’s pandemic strategy under scrutiny.

Read more …

ICU shortages coming up in multiple locations.

• The US Surrendered To The Pandemic. Protect Yourself (MoA)

Yesterday the United States registered more than 60,000 new Covid-19 cases. As the number of new cases continues to increase unabated about two weeks from now it is likely to reach hundred thousand new cases per day. The increase of testing is not the cause of higher new case numbers. The rate of people among those who were tested and were found positive has also increased. In Florida, which yesterday had nearly 10,000 new cases, the positive test rate has reached nearly 20%. That means that the epidemic is still accelerating. This did not need to happen. Yesterday Germany, at a quarter the size of the U.S., had 279 new cases. It does 1 million tests per week and the positive rate is decreasing.

China has defeated a new local outbreak in Beijing by testing more than 10 million people. The last two days it reported zero new cases. Many of those who test positive, especially the younger ones, will not fall ill with severe symptoms. But some 10-15% are estimated to need medical support. How many of them will die depends on the quality of care that can be given to them. Some thirty hospitals in Florida have already run out of space in their intensive care units. That is the point where the real emergency begins. Six months after the disease was discovered more is known of how to care for Covid-19 cases. The death rate per cases has therefore decreased. But this only holds when there are sufficient beds, doctors and staff available.


At the current U.S. rate that will soon no longer be the case. We do know that the hospitalization curve follows the testing/symptoms curve by some 10-14 days while ICU admittance follows the above curve with some 15 to 20 days delay. The eventual recovery in an ICU bed takes up to four weeks. A bed once occupied will not be available for quite some time.

Read more …

The changes will be gigantic. So will the misery. We just don’t want to know.

• 53% Of Restaurants Closed Amid Coronavirus Have Shuttered Permanently (RD)

New research from Yelp shows that as of June 15, there were nearly 140,000 total business closures on the website since March 1. When compared to similar research released in April, which showed more than 175,000 business closures, these latest numbers indicate that more than 20% of businesses closed in April have reopened. In March, restaurants had the highest numbers of business closures listed on the app compared to other industries, and the rate of closure has remained high. Of the businesses that closed, 17% are restaurants, and 53% of those restaurant closures are indicated as permanent on Yelp. Retail, however, is the hardest hit overall.

During the peak of the pandemic, the number of diners seated across Yelp Reservations and Waitlist dropped essentially to zero. In early June, numbers of diners seated are down 57% of pre-pandemic levels. Predictions about the restaurant industry’s fate in a post-pandemic world have been abundant throughout the crisis. The National Restaurant Association estimated that 15% of restaurants could close, while Barclay’s estimate is more optimistic, predicting approximately 10% of restaurants will shutter permanently. Though it’s hard to find a silver lining in Yelp’s data, some predictions have been more dire still.


In May, OpenTable said one in four restaurants were at risk for closure, for example, though those numbers focus on restaurants that use the reservations platform. Casual or fine dining sit-down restaurants and mom-and-pop concepts that are not well capitalized are expected to experience the brunt of this crisis. The Independent Restaurant Coalition, for example, forecast that as many as 85% of independent restaurants could permanently close by the end of the year. Yelp’s data does illustrate how some restaurants have been able to weather the storm, however, reporting a 10-fold increase in searches for takeout since March 10, for example. Takeout and delivery searches are up 148%, with Yelp predicting this off-premise trend could be here to stay.

Read more …

Retail, travel, hospitality. Much of it will never be back.

• United Airlines Sends Furlough Warnings To 36,000 Workers (R.)

United Airlines said on Wednesday it was preparing to send notices of potential furloughs to 36,000 U.S.-based frontline employees, or about 45% of staff, as travel demand hit by the coronavirus pandemic struggles to recover. United shares lost 3.3% in midday trading. Not everyone who receives a notification will be furloughed, United said, with the final number depending on how demand evolves and how many employees accept early exit packages and temporary leaves. The furloughs would begin on Oct. 1, when a government-imposed ban on forced job cuts by airlines that accepted billions of dollars in federal payroll aid expires.


“The United Airlines projected furlough numbers are a gut punch, but they are also the most honest assessment we’ve seen on the state of the industry,” Association of Flight Attendants-CWA (AFA) President Sara Nelson said in a statement. The Chicago-based airline continues to burn through about $40 million of cash every day, with a number of efforts to cut costs and raise liquidity failing to compensate for the drastic drop-off in travel demand as COVID-19 cases continue to rise in the United States. The furlough warnings vary by work group. Flight attendants are among the hardest hit, with about 15,000 of roughly 25,000 set to receive notifications. United is working with the different unions on options to mitigate the final furlough number.

Read more …

Said it a few days ago: A state holding company modeled after Roosevelt’s Reconstruction Finance Corporation.

• US Retail Apocalypse: Over 25,000 Stores Could Close By Year End (ZH)

The unprecedented implosion of U.S. commercial real estate during the coronavirus pandemic is likely to get worse as newly delinquent CMBS loans are surging as the list of retail store closures continues to rise. Trepp’s June CMBS remittance report showed CMBS delinquencies hit a high of 10.32%, not seen since 2012. It was noted that that retail CRE loans were in rough shape. Many retail shops are heavily indebted, some have already declared bankruptcy, while others are quickly shrinking their operating size, by reducing store footprint to rein in cost as the virus-induced recession, blended with a plunge in consumption, along with a shift to online, is resulting in a rapid acceleration of the retail apocalypse. Coresight Research’s latest forecast has upwards of 25,000 retail stores could close by year end.


Forbes has released an updated list of confirmed store closures. So far, it looks like 8,708 store units have or will shutter operations this year, and could quickly surpass 2019 totals of 9,302, in a matter of months. With thousands of retail stores closing and the economy contracting, the next conversation Wall Street will have is about deep economic scarring and permanent job loss. Already, 3 million jobs have been eliminated from the economy, some of which have come from the closure of retail stores. The bad news about permanent job loss is that it’s a consumption killer, resulting in less spending at retailers, suggesting an even greater amount of store closures beyond anyone’s wild guess could be seen over the next 12-24 months.

Read more …

They can’t do a thing. They don’t even have the guts to let the yuan float.

• US Coronavirus Stimulus Reignites China’s Criticism Of Dollar Hegemony (SCMP)

The US economic policy response to the coronavirus crisis and the threat of financial sanctions on China have reinvigorated criticism in Beijing over the US dollar hegemony, but few analysts see a viable alternative currency emerging any time soon. Chinese officials have recently taken aim at the unprecedented coronavirus stimulus in the United States, which has seen American debt levels balloon and stoked concern in Beijing about the devaluation of the US dollar assets held by Chinese financial institutions. Threats by the US to sanction China over its imposition of a national security law on Hong Kong have also ratcheted up anxiety about being cut off from the US dollar-dominated SWIFT international payments system.

[..] Though the attitude in Beijing may be increasingly wary, few Western economists believe Washington is abusing the power of the US dollar with its coronavirus response. Others point out the impact on exchange rates has so far been relatively mild. “The Federal Reserve, like every other central bank, makes its monetary policy decisions mostly on the basis of domestic considerations,” said Eswar Prasad, the former head of the International Monetary Fund’s China division and now a trade professor at Cornell University. The fact its actions “reverberate around the world” are simply a consequence of its policy mandates, which are purely domestic in nature, Prasad added. Continued expansion of US monetary policy amid a protracted global recession is also likely to be positive for the real world economy, and particularly for economies with current account deficits and significant amounts of US dollar-denominated debt, according to analysts.

“Given the US dollar shortage that emerged with Covid, a weaker dollar is still good for the world, relieving funding pressures in both developed markets and emerging markets,” said Steve Englander, global head of North America macro strategy at Standard Chartered Bank. Reform of international monetary policy is likely to take a back seat to efforts to stabilise the global economy from the coronavirus pandemic. But even in the long-term, it is not clear what shape that would take. “In fact, the Fed’s apparent magnanimity in allowing other countries to have access to dollar financing collateralised by their holdings of US Treasuries will pull countries even deeper into the clutches of the dollar,” Prasad said.


A major obstacle is still the absence of an alternative reserve currency, Prasad said. China’s own push to internationalise the yuan has faltered over the past decade, despite its growing economic clout. The most recent figures from the SWIFT system showed that the Chinese currency accounted for just 1.66 per cent of international payment transactions in April versus 43 per cent for the US dollar. Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, said last month that China’s ability to reduce its reliance on the US dollar would be greatly enhanced if it can boost the international usage of the yuan. A debate about the merits of the US dollar as the major reserve currency is likely to re-emerge after the coronavirus, according to Englander, especially when the liquidity was no longer needed. “[But] the question is which currency do you trust to replace it and what improvement would that make.”

Read more …

PBOC is still buying. A lot. Question: with what? Their dollar reserves? They don’t have a lot of those that they can use freely

• China’s Market Euphoria Trumps Political Risk In Hong Kong (R.)

The country’s blue-chip CSI300 index hit five-year-highs in recent sessions on a state-endorsed rally and a retail trading frenzy. But Chinese investors and brokerages say they are increasingly drawn by Hong Kong shares, whose gains have been more modest. “Elephants are dancing (in mainland China), but in Hong Kong, many stocks are lying on the floor,” Shen Weizheng, senior advisor at brokerage Direct Access, said during an online pitch to mainland investors on Wednesday. “Buy more Hong Kong stocks. You don’t lose money buying bargains.” Mainland-listed A-shares are on average 35% more expensive than their Hong Kong-listed peers, also called “H-shares” widening from 23% just a month ago.


Share prices of the same company often differ vastly in the two markets. A growing number of U.S-listed Chinese internet companies, including NetEase and JD.com, have chosen to float in Hong Kong through secondary listings amid heightened Sino-U.S. tensions. New York-listed Alibaba, which completed its Hong Kong listing last year, could get the greenlight to enter the benchmark Hang Seng Index .HSI next month. “Capital is flowing into the city. The more intense the rivalry between the U.S. and China, the more unique Hong Kong will be as a centre to welcome back leading Chinese companies listed in the U.S.,” said Hao Hong, managing director at BOCOM International.

Read more …

With China seemingly hell-bent on conquering Hong Kong, why would they not?

• Some US Government Officials Want To Depeg Hong Kong Dollar (IBT)

Some aides to U.S. Secretary of State Michael Pompeo have suggested that Washington could punish China by compromising the Hong Kong dollar’s peg to the U.S. dollar. Tensions between the U.S. and China have been escalating for months, worsened by Beijing’s imposition of new security laws in Hong Kong that some think will eliminate the city-state’s autonomy. Bloomberg reported that one way to undermine the Hong Kong dollar peg would be by restricting the ability of Hong Kong banks to purchase U.S. dollars. The matter has been discussed with Pompeo but not yet with senior members of President Donald Trump’s White House staff.

Hong Kong has linked its currency to the U.S. dollar since 1983 and has generally performed well trading within a narrow band. The proposal would also face obstacles among other U.S. government officials who fear it would just hurt Hong Kong banks and not mainland China itself. Last month, Hong Kong’s financial secretary, Paul Chan said that if the US slapped sanctions on the city-state, then China’s central bank could supply it with American dollars. Eddie Yue, chief executive of the Hong Kong Monetary Authority, Hong Kong’s de facto central bank, said that the 36-year old dollar peg predates the 1992 U.S-China Policy Act which features a provision permitting the U.S. dollar “to be freely exchanged” with the Hong Kong dollar.


Yue suggested that the unlikely event of Trump blocking Hong Kong’s access to U.S. dollars would amount to an “apocalyptic” scenario that could backfire on Washington. “With Hong Kong’s financial system closely integrated with the global economic and financial systems, any move that hits our financial system would also send shockwaves across the global financial markets, including the U.S.,” he said. “Confidence of international investors in using the [U.S. dollar] and holding U.S. financial assets could also be undermined.”

Read more …

Again, the PBOC is buying.

• Surging Demand for Hong Kong Dollars Underscores Beijing Support (BBG)

Demand for Hong Kong dollars is intensifying in the face of an increasingly politicized environment, with mainland buying helping to buoy both the pegged currency and local stock market. The city’s de facto central bank sold a combined HK$15.8 billion ($2 billion) to purchase the greenback on Wednesday, the biggest intervention since it started defending the peg on the strong end of the trading band in late April. The Hong Kong Monetary Authority has now spent almost $12 billion this year to keep the currency from strengthening further. Wednesday’s intervention came shortly after news that some Trump aides are considering plans to undermine the peg mechanism in retribution for Beijing’s crackdown on civil liberties in the former British colony.


Mainland-based investors showed their support for the city through buying more than $1 billion worth of Hong Kong shares on the day. The events show how the city’s financial system is increasingly being caught up in the rivalry between Washington and Beijing. For now, Hong Kong’s markets seem immune to the tensions. Red-hot Chinese equities, a stronger yuan and low valuations have helped push Hong Kong stocks into a bull market. Mainland purchases of local equities since Beijing first announced plans for Hong Kong’s controversial security law are now nearing $9 billion. “Bullish sentiment is pushing short-term funds and liquidity into Hong Kong,” said Banny Lam, managing director at CEB International Capital Corp. “China’s stock market is very hot and you see a lot of people using the stock connect to buy these shares. All these factors are attracting liquidity.”

Read more …

Shouldn’t this be big on CNN?

• UK Judge Orders Christopher Steele To Pay Damages To Russian Bankers (RT)

A London judge has ordered former British spy Christopher Steele to pay thousands of pounds in damages for not verifying the claims he included in his scandalous Russian dossier, which alleged Donald Trump’s ties with Moscow. Steele was taken to court by Mikhail Fridman and Petr Aven, Russian bankers from Alfa Group, who contested one of the key allegations in the paper – that they were responsible for delivering “large amounts of illicit cash” to President Vladimir Putin in the 1990s. Justice Mark Warby of the High Court of England and Wales ruled on Wednesday that Steele’s claim against Fridman and Aven was “inaccurate and misleading.”


Steele’s firm, Orbis Business Intelligence, violated British data privacy law as it “failed to take reasonable steps to verify the allegation,” and will now pay £18,000 pounds (around $22,600) in damages to each of the bankers, Warby said. Fridman said in a statement that he was “delighted” with the outcome of the trial. He has insisted that the dossier’s claims that Alfa Group was somehow a link between the Russian government and the Trump campaign during the 2016 election were absolutely groundless. “Ever since these odious allegations were first made public in January 2017, my partners and I have been resolute and unwavering in our determination to prove that they are untrue, and through this case, we have finally succeeded in doing so,” Fridman said.

Read more …

The MSM will present it as a poltical ploy. All they think they need to do is lift it over the election, and then throw it out.

• John Solomon: Indictments Coming In Russia Investigation (WND)

Investigative reporter John Solomon says there’s a “lot of activity” in U.S. Attorney John Durham’s criminal investigation of the Obama administration’s probe of now-debunked claims of Trump-Russia collusion during the 2016 election. “My sources tell me there’s a lot of activity. I’m seeing, personally, activity behind the scenes [showing] the Department of Justice is trying to bring those first indictments,” Solomon said [..] “And I would look for a time around Labor Day to see the first sort of action by the Justice Department.” Solomon said he’s seeing “action consistent with building prosecutions and preparing for criminal plea bargains.”

“Until they bring it before the grand jury you never know if it’s going to happen. I’m seeing activity consistent with that.” Top former officials, including former CIA Director John Brennan, are said to be targets of the Durham investigation. But Attorney General William Barr has said he doesn’t expect Obama and former Vice President Joe Biden, the presumptive Democratic presidential nominee, to be subjects of a criminal investigation. “There is overwhelming evidence in the public record now that crimes were committed,” Solomon said. He cited “falsification of documents, false testimony, false representations before the FISA court.”


Solomon said he is hearing from defense lawyers and people “on the prosecution side” that complications with the coronavirus pandemic are “slowing down” the grand jury process. WND reported this week Sen. Charles Grassley, R-Iowa, the chairman of the Senate Finance Committee, said Durham should launch any prosecutions before the November election. [..] A report from DOJ Inspector General Michael Horowitz found at least 17 “significant” errors or omissions related to the Obama administration’s efforts to use the Foreign Intelligence Surveillance Act provisions against Trump.

Read more …

How is this still a topic?

• Top US Commander Unconvinced By ‘Russian Bounty To Taliban’ Intel (RT)

Intelligence claiming Russia paid Taliban fighters to target US troops in Afghanistan lacked evidence, the top US general in the region has said. His account crushes yet another sensational media report based on anonymous sources. General Kenneth McKenzie, who oversees military operations in the Middle East and Central Asia as the head of US Central Command, told reporters on Tuesday that unverified reports about Russia having placed “bounties” on American soldiers in Afghanistan have yet to be substantiated. “The intel case wasn’t proved to me – it wasn’t proved enough that I’d take it to a court of law – and you know, that’s often true in battlefield intelligence,” the senior commander said. According to McKenzie, “there wasn’t enough there” to consider the intelligence credible.


He described the reports as “worrisome,” but stressed that there was no “causative link” to support the notion that an alleged bounty program had led to US deaths in Afghanistan. McKenzie’s remarks come a week after an assessment by the National Intelligence Council (NIC) concluded that the intelligence community has reservations about the allegations leveled against Russia. The memo said that the CIA and the National Counterterrorism Center had “medium confidence” in the reports, while the National Security Agency (NSA) and other spy agencies expressed “lower confidence.” [..] Responding to the allegations, Kremlin spokesman Dmitry Peskov didn’t mince his words, blasting the unverified US media reports as “100 percent bulls**t.”

Read more …

It doesn’t matter what the top commander thinks, or even what US intelligence admits. The public has been indoctrinated. And that is the goal.

• Most Americans Believe Russia Targeted US Soldiers (R.)

A majority of Americans believe that Russia paid the Taliban to kill U.S. soldiers in Afghanistan last year amid negotiations to end the war, and more than half want to respond with new economic sanctions against Moscow, according to a Reuters/Ipsos poll released on Wednesday. The national opinion poll conducted on Monday and Tuesday shows that the American public remains deeply suspicious of Russia four years after it tried to tip the U.S. presidential election in Donald Trump’s favor, and most Americans are unhappy with how the president has handled relations with the country.

The Reuters/Ipsos poll follows a series of reports, including several by Reuters, that Russia had been rewarding Taliban-affiliated militants, possibly by offering them bounties, to attack and kill U.S. troops in the region. Moscow denies the allegations. The New York Times and Washington Post both reported that several American soldiers were believed to have died as a result of the bounties. Trump said last week he was not told about the reported Russian effort, because intelligence officials were uncertain about its veracity. The New York Times reported that the president received written briefings about the program earlier this year, and it was also included in a widely read CIA report in May.


Overall, 60% of Americans said they found reports of Russian bounties on American soldiers to be “very” or “somewhat” believable, while 21% said they were not credible and the rest were unsure. Thirty-nine percent said they thought Trump “did know” about Russia’s targeting of the U.S. military before reports surfaced in the news media last month, while 26% said the president “did not know.” Eighty-one percent of Americans said they viewed Russian President Vladimir Putin as a threat to the United States, including 24% who saw him as an “imminent threat.” Only 35% said they approved of Trump’s handling of Russia, compared with 52% who disapproved.

Read more …

 

 

We try to run the Automatic Earth on donations. Since their revenue has collapsed, ads no longer pay for all you read, and your support is now an integral part of the interaction.

Thank you.

 

 

 

 

 

 

Support the Automatic Earth in virustime.

 

Debt Rattle March 19 2020

Mar 192020
 
 March 19, 2020  Posted by at 11:05 am Finance Tagged with: , , , , , , , , , , , ,  51 Responses »


DPC Cab stand at Madison Square, NY c1900

 

• ‘A Generation Has Died’ (G.)
• Scientists Say Mass Tests In Italian Town Have Halted COVID-19 (G.)
• Japanese Flu Drug ‘Clearly Effective’ Against Coronavirus, But.. (G.)
• UK Failures Over COVID-19 Will Increase Death Toll, Says Leading Doctor (G.)
• Asian Nations Face Second Wave Of Imported Cases (BBC)
• Dollar Resumes Ascent As Investors Panic, Scramble For Cash (R.)
• Cash Is King As Emergency Stimulus Fails To Stop Market Panic (R.)
• Misunderestimate: Banks Are Going To Drown In An Ocean Of Defaults (Black)
• Airline Industry Turmoil Deepens As Coronavirus Pain Spreads (R.)
• The COVID-19 Crisis Is A Chance To Do Capitalism Differently (Mazzucato)
• Russia Coronavirus Disinformation Designed To Sow Panic In West – EU (R.)
• ‘Putin’s Chef’ Threatens To Sue US Over Charges Of 2016 Election Meddling (G.)
• Ghislaine Maxwell Sues Jeffrey Epstein’s Estate Over Legal Fees (BBC)

 

 

 

• Cases 221,934 (+ 19,664 from yesterday’s 202,270)

• Deaths 8,999 (+ 987 from yesterday’s 8,012)

 

From Worldometer yesterday evening (before their day’s close)

 

 

From Worldometer -NOTE: mortality rate briefly touched 10% –

 

 

From SCMP: (Note: the SCMP graph was useful when China was the focal point; they are falling behind now)

 

 

From COVID2019.app: (New format lacks new cases and deaths)

 

 

I wanted to show you how widespread the virus has become. Worldometer keeps a constantly updated record of new cases and deaths every day. Here is the harvest of just the past 10 hours; I left out the sources, go to their site for those.

• 1 new case in Sweden
• 5 new cases in Sri Lanka
• 309 new cases and 7 new deaths in Belgium
• 12 new cases in Bahrain
• 35 new cases in Norway
• 756 new cases and 3 new deaths in Germany
• 10 new cases in Tunisia
• 245 new cases and 2 new deaths in Spain
• 10 new cases in Peru
• 22 new cases in Pakistan
• 12 new cases in Armenia
• 104 new cases and 2 new deaths in Switzerland
• 2 new cases in Lithuania:
• 28 new cases in Finland
• 3 new cases in Tanzania
• 3 new cases in the State of Palestine
• 4 new cases in Bangladesh
• 4 new cases in Guam
• 5 new cases in Brunei Darussalam
• 1 new death in Greece
• 13 new cases and 1 new death in Croatia
• 4 new cases in Morocco
• 6 new cases in Bosnia and Herzegovina
• 15 new cases in the Philippines
• 7 new cases and 1 new death in Algeria
• 75 new cases and 2 new deaths in Denmark
• 2 new cases in Ghana
• 113 new cases in Australia (NSW), including a 6-year-old child
• 6 new cases in Slovakia
• 7 new cases in the DR Congo
• 6 new cases in Lebanon
• 96 new cases in Israel
• 132 new cases and 2 new deaths in Luxembourg
• 15 new cases in Latvia
• 50 new cases in Czechia
• 1st death in Russia
• 110 new cases in Malaysia
• 14 new cases in Faeroe Islands
• 6 new cases in Kuwait
• 1 new case in Cuba: a Canadian citizen
• 60 new cases in Thailand
• 82 new cases and 6 new deaths in Indonesia
• 18 new cases in Poland
• 8 new cases in Kazakhstan
• 1st death in Mexico
• 197 new cases and 1 new death in Austria
• 3 new cases in Bangladesh
• 8 new cases in Serbia
• 2 new cases in Sri Lanka
• 5 new cases in India
• 15 new cases in Hungary
• 2 new cases in Georgia
• 8 new cases in Taiwan
• 2 new cases and 1 new death in Bulgaria
• 5 new cases in Uzbekistan
• 5 new cases in Armenia
• 205 new cases and 5 new deaths in the United States
• 9 new cases and 3 new deaths in Japan
• 3 new cases in Honduras
• 2 new cases in Trinidad and Tobago
• 1 new case in French Polynesia
• 1 new death in Argentina
• 1st case in Nicaragua
• 1st case in El Salvador
• 1st case in Fiji
• 1 new death in Curaçao.
• 9 new cases in Colombia
• 152 new cases and 7 new deaths in South Korea
• 8 new cases in New Zealand
• 34 new cases, 8 new deaths (all in Hubei) in China

 

 

Time to wonder about mental health as well.

• ‘A Generation Has Died’ (G.)

Coffins awaiting burial are lining up in churches and the corpses of those who died at home are being kept in sealed-off rooms for days as funeral services struggle to cope in Bergamo, the Italian province hardest hit by the coronavirus pandemic. As of Wednesday, Covid-19 had killed 2,978 across Italy, all buried or cremated without ceremony. Those who die in hospital do so alone, with their belongings left in bags beside coffins before being collected by funeral workers. In Bergamo, a province of 1.2 million people in the Lombardy region, where 1,640 of the total deaths in the country have taken place, 3,993 people had contracted the virus by Tuesday. The death toll across the province is unclear, but CFB, the area’s largest funeral director, has carried out almost 600 burials or cremations since 1 March.

“In a normal month we would do about 120,” said Antonio Ricciardi, the president of CFB. “A generation has died in just over two weeks. We’ve never seen anything like this and it just makes you cry.” There are about 80 funeral companies across Bergamo, each receiving dozens of calls an hour. A shortage of coffins as providers struggle to keep up with demand and funeral workers becoming infected with the virus are also hampering preparations. Hospitals have adopted more stringent rules regarding the handling of the dead, who need to be placed in a coffin straight away without being clothed due to the risk of infection posed by their bodies. “Families can’t see their loved ones or give them a proper funeral, this is a big problem on a psychological level,” said Ricciardi. “But also because many of our staff are ill, we don’t have as many people to transport and prepare the bodies.”

For those who die at home, the bureaucratic process is lengthier as deaths need to be certified by two doctors. The second is a specialist who would ordinarily have to certify the death no later than 30 hours after a person has passed away. “So you have to wait for both doctors to come and at this time, many of them are also ill,” added Ricciardi. Stella, a teacher in Bergamo, shared the story of one of the deceased with the Guardian. “Yesterday, an 88-year-old man died,” she said. “He’d had a fever for a few days. There was no way to call an ambulance because the line was always busy. He died alone in his room. The ambulance arrived an hour later. Obviously, nothing could be done. And since no coffins were available in Bergamo, they left him on the bed and sealed his room to keep his relatives from entering until a coffin could be found.”

Adding to the torment is the fact that relatives cannot visit their loved ones in hospital, or give them proper funerals. “Usually you would be able to dress them and they would stay one night in the family home. None of this is happening,” said Alessandro, whose 74-year-old uncle died in Codogno, the Lombardy town where the outbreak began. “You can’t even see them to say goodbye, this is the most devastating part.” The harrowing impact of the virus on Bergamo can be gleaned from the obituary section of the local newspaper L’Eco di Bergamo. On Friday, reader Giovanni Locatelli shared online footage comparing the newspaper’s obituary section on 9 February, when listings took up just one page, to a copy dated 13 March, when 10 pages were needed to commemorate the dead.

Read more …

Test? Where do I get one?

• Scientists Say Mass Tests In Italian Town Have Halted COVID-19 (G.)

The small town of Vò, in northern Italy, where the first coronavirus death occurred in the country, has become a case study that demonstrates how scientists might neutralise the spread of Covid-19. A scientific study, rolled out by the University of Padua, with the help of the Veneto Region and the Red Cross, consisted of testing all 3,300 inhabitants of the town, including asymptomatic people. The goal was to study the natural history of the virus, the transmission dynamics and the categories at risk. The researchers explained they had tested the inhabitants twice and that the study led to the discovery of the decisive role in the spread of the coronavirus epidemic of asymptomatic people.

When the study began, on 6 March, there were at least 90 infected in Vò. For days now, there have been no new cases. “We were able to contain the outbreak here, because we identified and eliminated the ‘submerged’ infections and isolated them,” Andrea Crisanti, an infections expert at Imperial College London, who took part in the Vò project, told the Financial Times. “That is what makes the difference.” The research allowed for the identification of at least six asymptomatic people who tested positive for Covid-19. ‘‘If these people had not been discovered,” said the researchers, they would probably have unknowingly infected other inhabitants.

“The percentage of infected people, even if asymptomatic, in the population is very high,” wrote Sergio Romagnani, professor of clinical immunology at the University of Florence, in a letter to the authorities. “The isolation of asymptomatics is essential to be able to control the spread of the virus and the severity of the disease.” [..] the problems of mass tests are not only of an economic nature (each swab costs about 15 euros) but also at a organisational level. [..] Massimo Galli, professor of infectious diseases at the University of Milan and director of infectious diseases at the Luigi Sacco hospital in Milan, warned carrying out mass tests on the asymptomatic population could however prove to be useless. “The contagions are unfortunately constantly evolving,” Galli told the Guardian. “A man who tests negative today could contract the disease tomorrow.”

Read more …

Every day brings new stories of miracles. And then you read them.

• Japanese Flu Drug ‘Clearly Effective’ Against Coronavirus, But.. (G.)

Medical authorities in China have said a drug used in Japan to treat new strains of influenza appeared to be effective in coronavirus patients, Japanese media said on Wednesday. Zhang Xinmin, an official at China’s science and technology ministry, said favipiravir, developed by a subsidiary of Fujifilm, had produced encouraging outcomes in clinical trials in Wuhan and Shenzhen involving 340 patients. “It has a high degree of safety and is clearly effective in treatment,” Zhang told reporters on Tuesday. Patients who were given the medicine in Shenzhen turned negative for the virus after a median of four days after becoming positive, compared with a median of 11 days for those who were not treated with the drug, public broadcaster NHK said.


In addition, X-rays confirmed improvements in lung condition in about 91% of the patients who were treated with favipiravir, compared to 62% or those without the drug. Fujifilm Toyama Chemical, which developed the drug – also known as Avigan – in 2014, has declined to comment on the claims. Shares in the firm surged on Wednesday following Zhang’s comments, closing the morning up 14.7% at 5,207 yen, having briefly hit their daily limit high of 5,238 yen. Doctors in Japan are using the same drug in clinical studies on coronavirus patients with mild to moderate symptoms, hoping it will prevent the virus from multiplying in patients. But a Japanese health ministry source suggested the drug was not as effective in people with more severe symptoms. “We’ve given Avigan to 70 to 80 people, but it doesn’t seem to work that well when the virus has already multiplied,” the source told the Mainichi Shimbun.

Read more …

Not the first time we mention Richard Horton, editor-in-chief of the Lancet.

• UK Failures Over COVID-19 Will Increase Death Toll, Says Leading Doctor (G.)

A “collective failure” to appreciate the enormity of the coronavirus pandemic and enact swift measures to protect the public will lead to unnecessary deaths, according to a leading doctor, who said the UK ignored clear warning signs from China. Richard Horton, editor-in-chief of the Lancet, rounded on politicians and their expert advisers for failing to act when Chinese researchers first warned about a devastating new virus that was killing people in Hubei eight weeks ago. The team from Wuhan and Beijing reported in January that “the number of deaths was rising quickly” as the virus spread in China. They urged the global community to launch “careful surveillance” in view of the pathogen’s “pandemic potential”.


But writing in the Guardian, Horton said the warning was met with complacency in Britain, where for unknown reasons, medical and scientific advisers watched and waited. At the time, scientists advising ministers appeared to believe it could be treated like influenza, and that a “controlled epidemic” would generate “herd immunity” that would help protect the most vulnerable against the infection. The scenario called for upwards of 60% of the population to contract the virus. The government’s strategy changed dramatically on Monday when the prime minister announced that new modelling from Imperial College London demonstrated that more draconian measures were needed to slash the estimated death toll from 260,000 to about 20,000. Without those measures, which have transformed society, the NHS would be overwhelmed, leading to a situation that has driven a brutal death toll in Italy.

Read more …

Excuse me, but why do they let it happen? Once you’ve been through Wave 1, shouldn’t you know better than to let people travel abroad and come back?

• Asian Nations Face Second Wave Of Imported Cases (BBC)

South Korea, China and Singapore are among the Asian countries facing a second coronavirus wave, spurred by people importing it from outside. China, where the virus first emerged, reported no new domestic cases on Thursday for the first time since it started recording numbers in January. But it reported 34 new cases among people recently returned to China. South Korea saw a jump in new cases on Thursday with 152, though it is not clear how many were imported. A new cluster there is centred on a nursing home in Daegu, where 74 patients have tested positive. On Wednesday, Singapore reported 47 new infections – of which 33 were imported, including 30 residents who had been infected abroad and brought the infection back.


In China, there were eight more deaths, all in the central province of Hubei and most of them in Wuhan. All three countries had been showing success in controlling domestic cases, but there is concern that increases elsewhere could unravel their progress. Much of the focus has now shifted to Europe and the US, but the new numbers signal that the outbreak is far from over in Asia. Malaysia’s senior health office on Wednesday begged people to “stay at home and protect yourself and your family. Please”. The country has tallied 710 people with the virus, many of them linked to one religious event in the capital, Kuala Lumpur, in February. “We have a slim chance to break the chain of COVID-19 infections,” Noor Hisham Abdullah, director general of Health Malaysia, said on Facebook. “Failure is not an option here. If not, we may face a third wave of this virus, which would be greater than a tsunami, if we maintain a ‘so what’ attitude.”

Read more …

Far as I can see, the dollar sold of a lot recently. But now people need dollars to pay off their losses.

• Dollar Resumes Ascent As Investors Panic, Scramble For Cash (R.)

The dollar resumed its relentless climb against major currencies on Thursday as wild financial market volatility and worries over tightening liquidity triggered by the coronavirus pandemic sparked an investor flight into cash. Sterling teetered near the lowest since at least 1985 against the greenback. The Australian dollar skidded to a 17-year low, while the New Zealand dollar crashed to an 11-year low as investors dumped riskier assets. The euro briefly rose against the dollar and the pound after the European Central Bank announced a €750 billion asset-purchase programme in response to the coronavirus outbreak, but even this effort was overwhelmed by a stampede into the dollar.


Investors are selling what they can to keep their money in dollars due to the unprecedented amount of uncertainty caused by the virus epidemic, which threatens to paralyse large swaths of the global economy. “This is similar to what happened during the global financial crisis in that investors are even selling what are normally considered safe-haven assets,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo. “The logic is the biggest hedge against risk is holding your money in cash, so the dollar is being bought. Investor uncertainty is about as high as it can get.” [..] In some cases investors are unloading Treasuries and gold in order to keep their money in dollars. This has confounded many analysts because investors normally buy government debt and precious metals during times of uncertainty.

Read more …

Same as above. “We’re in this phase where investors are just looking to liquidate their positions..” We’re in the phase where they have to pay their gambling debts. “Investor” just sounds better than “gamblig addict”.

• Cash Is King As Emergency Stimulus Fails To Stop Market Panic (R.)

The dollar surged and everything else was blown away on Thursday as emergency central bank measures in Europe, the United States and Australia failed to halt a fresh wave of panic selling. “There’s no buyers, there’s not much liquidity and everyone is just getting out,” said Chris Weston, head of research at Melbourne brokerage Pepperstone. Stocks, bonds, gold and commodities fell as the world struggles to contain coronavirus and investors and businesses scramble for hard cash. U.S. stock futures were a hair’s breadth from hitting session down limits. The growth-sensitive Australian dollar was crushed 4% to a more than 17-year low. Nearly every stock market in Asia was down and circuit breakers were hit in Seoul, Jakarta and Manila.

Traders reported huge strains in bond markets as distressed funds sold any liquid asset to cover losses in stocks and redemptions from investors. Benchmark 10-year sovereign bond yields in Australia, New Zealand, Malaysia, Korea and Singapore and Thailand surged as prices tumbled. Gold fell 1% and copper hit its downlimit in Shanghai. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 5% to a four-year low, with Korea and Hong Kong leading losses. The Nikkei fell nearly 1%, the ASX 200 nearly 3%, while the Kospi lost 8% and the Hang Seng 5%. “We’re in this phase where investors are just looking to liquidate their positions,” said Prashant Newnaha, senior interest rate strategist at TD Securities in Singapore.

[..] J.P. Morgan economists forecast the U.S. economy to shrink 14% in the next quarter, and the Chinese economy to drop more than 40% in the current one, one of the most dire calls yet as to the scale of the fallout. “There is no longer doubt that the longest global expansion on record will end this quarter,” they said in a note. “The key outlook issue now is gauging the depth and the duration of the 2020 recession.”

Read more …

We could all write this by now.

• Misunderestimate: Banks Are Going To Drown In An Ocean Of Defaults (Black)

On November 6, 2000, then US presidential candidate George W. Bush told a crowd of cheering supporters, “they misunderestimated me.” [..] ‘Misunderestimate’ seems to be a conflation of the words ‘misunderstand’ and ‘underestimate’. And while that was utterly hysterical 20 years ago when Bush first said it, ‘misunderestimate’ may be the most appropriate word of today. The entire world has completely ‘misunderestimated’ the Corona Virus. Banks are about to drown in an ocean of defaults. I’ll talk about this a lot more in the coming days, but briefly:

• There’s $250 TRILLION in global debt right now– mortgages, credit card debt, business loans, government debt, etc.
• And banks own a large portion of that debt.
• This virus crisis is going to trigger a wave of defaults from consumers, businesses, and even governments.
• Think about it: tourism alone makes up 10% of global GDP. Revenue in that entire sector– hotels, airlines, cruise ships, etc. has collapsed, and many of those companies aren’t going to survive.
• The crash in oil prices is going to wipe out countless oil companies.
• Many large retail chains, which were already struggling in the age of e-commerce, will likely declare bankruptcy.
• Countless businesses around the world have ‘temporarily’ closed due to public health policies, and many of them will go out of business entirely.
• MOST of these businesses owe lots of money to the banks, whether it’s a small business working line, or the $34 billion in debt that American Airlines owes. So the defaults are going to be massive.
• On top of that, millions of people are going to lose their jobs and be unable to make payments on their credit card debt, auto loans, and even mortgages.
• Again, there’s $250 trillion in global debt right now. Total bank capital worldwide is less than $10 trillion.
• So if the coming defaults trigger a mere 4% loss in total debt, it will exceed the entirety of global bank capital.
• And this doesn’t even take into consideration the impact of the $1 QUADRILLION derivatives exposure.

Misunderestimate? Absolutely.

Read more …

Why save something so bloated?

• Airline Industry Turmoil Deepens As Coronavirus Pain Spreads (R.)

Airline industry turmoil deepened on Thursday as Qantas told most of its 30,000 employees to take leave and India prepared a rescue package of up to $1.6 billion to aid carriers battered by coronavirus, government sources said. The U.N.’s International Civil Aviation Organization called on governments to ensure cargo operations were not disrupted to maintain the availability of critical medicine and equipment such as ventilators, masks, and other health and hygiene items that will help reduce the spread of the coronavirus pandemic. Passenger operations have collapsed at an unprecedented rate as the virus spreads around the world, with Delta Air parking more than 600 jets, cutting corporate pay by as much as 50%, and scaling back its flying by more than 70% until demand begins to recover.

Shares in U.S. airlines fell sharply on Wednesday after Washington proposed a rescue package of $50 billion in loans, but no grants as the industry had requested, to help address the financial impact from the deepening coronavirus crisis. The Trump administration’s lending proposal would require airlines to maintain a certain amount of service and limit increases in executive compensation until the loans are repaid. American Airlines in a memo to staff rebuffed criticism that it had rewarded its shareholders with too many dividends and stock buybacks in better times, leaving it with less cash to manage the crisis. “Unfortunately, this is no ordinary rainy day,” said Nate Gatten, American’s senior vice president global government affairs. “These are extraordinary circumstances, and additional support is necessary to protect jobs and ensure that the flying public can continue to rely on our industry after the crisis ends.”

[..] Air Canada said it was gradually suspending the majority of its international and U.S. transborder flights by March 31. India is poised to join a growing list of countries offering aid to its aviation industry. The Finance Ministry is considering a proposal worth up to $1.6 billion that includes temporary suspension of most taxes levied on the sector, according to two government sources who have direct knowledge of the matter. New Zealand on Thursday outlined the first tranche of a NZ$600 million ($344 million) aviation relief package, including financial support for airlines to pay government passenger charges and cover air traffic control fees.

Read more …

Mariana Mazzucato is professor of economics at University College London.

I understand the temptation to theorize and wax enthusiastically about underlying systems, but isn’t it more useful to talk about how we can have 1 million tests per day by tomorrow morning?

• The COVID-19 Crisis Is A Chance To Do Capitalism Differently (Mazzucato)

Since the 1980s, governments have been told to take a back seat and let business steer and create wealth, intervening only for the purpose of fixing problems when they arise. The result is that governments are not always properly prepared and equipped to deal with crises such as Covid-19 or the climate emergency. By assuming that governments have to wait until the occurrence of a huge systemic shock before they resolve to take action, insufficient preparations are made along the way. In the process, critical institutions providing public services and public goods more widely – such as the NHS in the UK, where there have been cuts to public health totalling £1bn since 2015 – are left weakened.

The prominent role of business in public life has also led to a loss of confidence in what the government can achieve alone – leading in turn to the many problematic public-private partnerships, which prioritise the interests of business over the public good. For example, it has been well documented that public-private partnerships in research and development often favour “blockbusters” at the expense of less commercially appealing medicines that are hugely important to public health, including antibiotics and vaccines for a number of diseases with outbreak potential. On top of this, there is a lack of a safety net and protection for working people in societies with rising inequality, especially for those working in the gig economy with no social protection.

But we now have an opportunity to use this crisis as a way to understand how to do capitalism differently. This requires a rethink of what governments are for: rather than simply fixing market failures when they arise, they should move towards actively shaping and creating markets that deliver sustainable and inclusive growth. They should also ensure that partnerships with business involving government funds are driven by public interest, not profit. First of all, governments must invest in, and in some cases create, institutions that help to prevent crises, and make us more capable to handle them when they arise. The UK government’s emergency budget of £12bn for the NHS is a welcome move. But equally important is a focus on long-term investment to strengthen health systems, reversing the trends of recent years.

Second, governments need to better coordinate research and development activities, steering them towards public health goals. Discovery of vaccines will necessitate international coordination on a herculean scale, exemplified by the extraordinary work of the Coalition for Epidemic Preparedness Innovations (CEPI).

Read more …

Unbelievable. More harmful than the virus. Or rather a virus in itself, one that kills slowly.

• Russia Coronavirus Disinformation Designed To Sow Panic In West – EU (R.)

Russian media have deployed a “significant disinformation campaign” against the West to worsen the impact of the coronavirus, generate panic and sow distrust, according to a European Union document seen by Reuters. The Kremlin denied the allegations on Wednesday, saying they were unfounded and lacked common sense. The EU document said the Russian campaign, pushing fake news online in English, Spanish, Italian, German and French, uses contradictory, confusing and malicious reports to make it harder for the EU to communicate its response to the pandemic. “A significant disinformation campaign by Russian state media and pro-Kremlin outlets regarding COVID-19 is ongoing,” said the nine-page internal document, dated March 16…

“The overarching aim of Kremlin disinformation is to aggravate the public health crisis in Western countries…in line with the Kremlin’s broader strategy of attempting to subvert European societies,” the document produced by the EU’s foreign policy arm, the European External Action Service, said. An EU database has recorded almost 80 cases of disinformation about coronavirus since Jan. 22, it said, noting Russian efforts to amplify Iranian accusations online, cited without evidence, that coronavirus was a U.S. biological weapon. Most scientists believe the disease originated in bats in China before passing to humans. Kremlin spokesman Dmitry Peskov pointed to what he said was the lack in the EU document of a specific example or link to a specific media outlet.

“We’re talking again about some unfounded allegations which in the current situation are probably the result of an anti-Russian obsession,” said Peskov. The EU document cited examples from Lithuania to Ukraine, including false claims that a U.S. soldier deployed to Lithuania was infected and hospitalized. It said that on social media, Russian state-funded, Spanish-language RT Spanish was the 12th most popular news source on coronavirus between January and mid-March, based on the amount of news shared on social media. The European Commission said it was in contact with Google, Facebook, Twitter and Microsoft. An EU spokesman accused Moscow of “playing with people’s lives” and appealed to EU citizens to “be very careful” and only use news sources they trust.

[..] Russian media in Europe have not been successful in reaching the broader public, but provide a platform for anti-EU populists and polarize debate, analysis by EU and non-governmental groups has shown. The EEAS report cited riots at the end of February in Ukraine, a former Soviet republic now seeking to join the EU and NATO, as an example of the consequences of such disinformation. It said a fake letter purporting to be from the Ukrainian health ministry falsely stated here were five coronavirus cases in the country. Ukrainian authorities say the letter was created outside Ukraine, the EU report said. “Pro-Kremlin disinformation messages advance a narrative that coronavirus is a human creation, weaponized by the West,” said the report, first cited by the Financial Times.

It quoted fake news created by Russia in Italy – which is suffering the world’s second most deadly outbreak of coronavirus – alleging that the 27-nation EU was unable to effectively deal with the pandemic, despite a series of collective measures taken by governments in recent days.

Read more …

$50 billion.

• ‘Putin’s Chef’ Threatens To Sue US Over Charges Of 2016 Election Meddling (G.)

A businessmen allied with Vladimir Putin has said he will sue the US for $50bn (£41bn) in damages after prosecutors dropped charges of meddling in the 2016 elections. Yevgeny Prigozhin, often dubbed “Putin’s chef,” claimed in a statement on Tuesday that he had been “wrongfully persecuted” by US prosecutors who said his company Concord had funded an internet troll factory that had promoted Donald Trump’s candidacy during the US elections. The charges, which were filed by special counsel Robert Mueller following his nearly two-year investigation into Russian meddling, were abruptly dropped on Monday, a month before trial. Prosecutors said the Russian company had “no exposure to meaningful punishment” and that the prosecution risked exposing investigative sources and methods.


A day later, Prigozhin went on the attack, saying the dropped charges showed that the US government “feared publicity and just court proceedings”. “This means that the allegations that ‘Prigozhin interfered in the US presidential election,’ ‘Concord interfered in the US presidential election,’ or ‘Russia interfered in the US presidential election’ are mendacious and false,” said Prigozhin, according to the statement released by his company. Prosecutors had previously complained that documents they had provided to the defence had ended up online, and had been hesitant to deliver more sensitive information to Concord’s defence team. It is not clear whether the plans to file a lawsuit are serious, where the lawsuit will be filed, and why Prigozhin values the damages against him at $50bn. The company’s press office declined to give any more information about Prigozhin’s plans on Tuesday.

Read more …

Threats on her life. But not from the FBI.

• Ghislaine Maxwell Sues Jeffrey Epstein’s Estate Over Legal Fees (BBC)

Ghislaine Maxwell, the former girlfriend of Jeffrey Epstein, is suing the late US financier’s estate seeking reimbursement for legal fees and security costs, court documents say. Ms Maxwell’s complaint states that she “had no involvement in or knowledge of Epstein’s alleged misconduct” and that he had promised to cover her costs. She also “receives regular threats to her life and safety”, it adds. [..] Ms Maxwell, a long-time friend of Epstein, has not been accused by the authorities of wrongdoing. Ms Maxwell’s lawsuit, which is dated 12 March but was made public on Wednesday, claims that “extensive global coverage” of the investigation resulted in her having to “hire personal security and find safe accommodation”. It adds that she “formed a legal and special relationship” with Epstein that obligated the estate to compensate her, and that “assurances” were made but later ignored after she filed a reimbursement claim in November.

Read more …

 

 

 

 

 

If you read us, please support us. Help the Automatic Earth survive.

 

 Older Entries