Jun 162019
 
 June 16, 2019  Posted by at 9:03 am Finance Tagged with: , , , , , , , , , , ,  


Keith Haring Untitled 1984

 

Ai Weiwei on Hong Kong and Assange (Rep.)
ECB Will Act If Inflation Expectations Are De-Anchored: de Guindos (R.)
European Banks Sink to Dec 24, 2018 Level – First Seen in 1995 (WS)
Pentagon Keeps Trump in the Dark About its Cyber Attacks on Russia (RS)
Boris Johnson’s No-Deal Brexit Plan ‘Will Trigger Early Election’ (O.)
Hundreds Dressed In Black Rally To Demand Hong Kong Leader Steps Down (R.)
Is The Caspian A Sea Or A Lake? (ZH)
Pilots Reveal Safety Fears Over Boeing’s Fleet Of Dreamliners (O.)
Record CO2 Emissions In 2018 Driven By Surging Use Of Gas (CB)
Hundreds Of Dolphins Have Died Along Gulf Coast Since February (AP)
Namibia Forced By Drought To Auction 1,000 Wild Animals (AFP)

 

 

“Julian Assange is a political prisoner. Clearly. There is no clearer definition than that.”

Interview in Italy’s La Repubblica, translation is a bit dodgy.

Ai Weiwei on Hong Kong and Assange (Rep.)

“How could he defend himself? He will not be under a clear law environment if he is taken to the US or already now as he has been holding in Europe, UK. Julian Assange is a political prisoner. Clearly. There is no clearer definition than that. What Assange did is not more than any newspaper does or publish important information that they think the people need to know. I think that if Assange is extradited, it will have huge consequences not just to it but also to the European moral or legal system. And it would completely redefine Europe as a place not caring about human rights anymore. Unfortunately this is happening all the time. But this time it will be clearly remembered as a landmark of the failure of our times.

It’s very interesting if you look at what’s happening about extradition. There are three cases about that going on in the world: Hong Kong, Assange and Huawei case, here the daughter of the founder is jailed in Canada because the US asked her extradition. I don’t know if she is a political prisoner but for sure she is part of the US strategy to limit China’s development in the world and the possibility of becoming a global leader. I’m not saying if it is right or wrong but it is fair this kind of situation. These three cases resemble a very interesting judicial challenge. At this moment after globalization the whole political structure of the world is being restored.


Now it’s starting to be challenged at the foundation of our rules, how do you readjust those rules and how to protect individuals’ freedom from the interest of state powers. That is a new task that any establishment of rule has to be concerned with. Nobody had put this together. This is an issue now embodied by different characters but actually it is one character.

Read more …

Remember: central bankers don’t have to actually understand what they do (and they don’t), they just have to make you believe they do.

ECB Will Act If Inflation Expectations Are De-Anchored: de Guindos (R.)

Longer-term inflation expectations in the euro zone need to come unstuck for the European Central Bank to provide more stimulus, ECB Vice President Luis de Guindos was quoted on Saturday as saying. With growth slowing and inflation staying well below the ECB’s target, the bank recently raised the prospect of even more stimulus, arguing that a rate cut or even more asset purchases may become necessary. “What we need to see is a de-anchoring of inflation expectations,” de Guindos told Italian newspaper Corriere della Sera when asked what the bank needed to see to provide more stimulus. “This has not yet happened, despite the fact that there has been a drop in market-based inflation expectations.”


With interest rates already at record lows and a 2.6 trillion euro ($2.9 trillion) bond purchase scheme ended just last year, analysts argue that the ECB has very little actual firepower left as its remaining tools lack significant potency. “If there is a further deterioration, then we will react,” de Guindos added. “But for now, our monetary policy stance is fully compatible with both inflation and real activity.” But de Guindos added that monetary policy is largely powerless against the impact of global trade disputes, one of the biggest drags on growth and thus inflation. “You can certainly smooth the impact with monetary policy, but you will not be able to address and fix this kind of problems with monetary policy,” he said.

Read more …

“..the introduction of negative policy rates by the European Central Bank in mid-2014 leads to more risk-taking and less lending by euro-area banks..”

European Banks Sink to Dec 24, 2018 Level – First Seen in 1995 (WS)

European bank shares – which have been getting crushed and re-crushed for 12 years – are getting re-crushed again. On Friday, the Stoxx 600 Banks index, which covers major European banks, including our hero Deutsche Bank, dropped to an intraday low of 130.5 and closed at 131.2, thereby revisiting the dismal depth of December 24, 2018 (130.8). European banks did not soar on the first trading day after Christmas, unlike other stocks. Instead they fell further and hit their multi-year low on December 27 (129). The index is down 21.5% from a year ago and 33% from January 2018:

[..] that 33% drop from January 2018 in the above chart is a minuscule dip in the long-term collapse-scenario going back to 2007. Buy and hold, indeed. Back to the level first seen in October 1995:

Part of the problem for European banks is NIRP, which was never designed to boost the real economy or make banks healthier so that they could support a vibrant economy. It was designed to boost bond prices and thereby bring yields down, which lowers the costs of borrowing for debt-sinner countries such as Italy, and allows them to borrow for free, which even Italy s government can do with maturities of up to one year. But there is a price to pay. The ECB released a paper in August 2018 where it admits that NIRP could cause a financial crisis because it’s terrible for many banks.


This is the chilling abstract of the paper: “We show that negative policy rates affect the supply of bank credit in a novel way. Banks are reluctant to pass on negative rates to depositors, which increases the funding cost of high-deposit banks, and reduces their net worth, relative to low-deposit banks. As a consequence, the introduction of negative policy rates by the European Central Bank in mid-2014 leads to more risk-taking and less lending by euro-area banks with greater reliance on deposit funding. Our results suggest that negative rates are less accommodative, and could pose a risk to financial stability, if lending is done by high-deposit banks.”

Read more …

“..those new laws are protecting American interests… by keeping the sitting president out of the loop. What a (scary) time to be alive.”

Pentagon Keeps Trump in the Dark About its Cyber Attacks on Russia (RS)

On Saturday, the New York Times published an important story about how the United States military branches are attempting to thwart and combat Russian cyber attacks on American utility networks and interference in elections. But deeper into the article, an interesting and disturbing nugget has drawn attention: The Pentagon has gone out of its way to keep President Donald Trump ignorant of certain details about the operation because of “the possibility that he might countermand it or discuss it with foreign officials.” After giving an in-depth account about the “deployment of American computer code” into Russia’s electric power grid, to work as both a warning to Russian President Vladimir Putin and a more offensive posture in the cyber warfare realm, The Times then wrote:


“Two administration officials said they believed Mr. Trump had not been briefed in any detail about the steps to place ‘implants’ — software code that can be used for surveillance or attack — inside the Russian grid. “Pentagon and intelligence officials described broad hesitation to go into detail with Mr. Trump about operations against Russia for concern over his reaction — and the possibility that he might countermand it or discuss it with foreign officials, as he did in 2017 when he mentioned a sensitive operation in Syria to the Russian foreign minister.” New laws, enacted by Congress last year, allow such “clandestine military activity” in cyberspace to go ahead without the president’s approval. So, in this case, those new laws are protecting American interests… by keeping the sitting president out of the loop. What a (scary) time to be alive.

Read more …

And then they can’t leave?!

Boris Johnson’s No-Deal Brexit Plan ‘Will Trigger Early Election’ (O.)

Boris Johnson’s attempts to appease hardline Tory Brexiters will tilt the party into a “disastrous general election” that could be just months away, senior Conservatives are warning. The runaway favourite to replace Theresa May is being told that the coalition of support set to deliver him Downing Street “won’t survive the autumn”, when he will have to decide whether to accept a deal with the EU or try to force a no-deal Brexit – a move likely to precipitate an election. Senior party figures are already warning of a “wipeout” in some parts of the country, such as Scotland and London, should it go into an election pledging to deliver a no-deal Brexit.


They believe that once in office, Johnson will either be toppled by hardline Eurosceptic MPs should he back away from no deal, or provoke an election by pursuing such a policy. With leadership contenders ruling out a coronation on Saturday, Tory critics are demanding increased scrutiny of Johnson’s Brexit plans. David Gauke, the justice secretary, said: “Boris is saying that he will definitely leave the EU by 31 October, but he is refusing to say how he will do this if parliament takes steps to stop a no-deal Brexit. Will he respond by suspending parliament? Will he seek a general election? This lack of clarity is helping him maintain a broad base of support for now but it won’t survive the autumn. This is why his position on Brexit needs to be tested thoroughly now.”

Read more …

“..if Lam was a stock he would recommend shorting her with a target price of zero. “Call it the Carrie trade.”

Hundreds Dressed In Black Rally To Demand Hong Kong Leader Steps Down (R.)

Activists set up gazebos as protesters, some carrying flowers, started to gather in sweltering summer heat to march from Victoria Park to Hong Kong’s central government offices. Beijing-backed Hong Kong Chief Executive Carrie Lam on Saturday indefinitely delayed the extradition bill that could send people to mainland China to face trial, expressing “deep sorrow and regret”. The about-face was one of the most significant political turnarounds by the Hong Kong government since Britain returned the territory to China in 1997, and it threw into question Lam’s ability to continue to lead the city. Activist investor David Webb, in a newsletter on Sunday, said if Lam was a stock he would recommend shorting her with a target price of zero.


“Call it the Carrie trade. She has irrevocably lost the public’s trust,” Webb said. “Her minders in Beijing, while expressing public support for now, have clearly lined her up for the chop by distancing themselves from the proposal in recent days.” Protest organizers are hoping more than a million people turn up for the Sunday rally, scheduled to start at 2.30pm local time, similar to numbers they estimated for a demonstration against the proposed extradition bill last Sunday. Police put that count at 240,000.

Read more …

Tyler’s headline: “How Iran Was Swindled Out Of $3.2 Trillion”. But there’s more to this story. The difference between a lake and a sea is huge for the law.

Is The Caspian A Sea Or A Lake? (ZH)

At stake is the allocation of revenues from the wider Caspian basins area, including both onshore and offshore fields, that is conservatively estimated to have around 48 billion barrels of oil and 292 trillion cubic feet (Tcf) of natural gas in proved and probable reserves. Around 41 percent of total Caspian crude oil and lease condensate and 36 percent of natural gas exists in the offshore fields, with an additional 35 percent of oil and 45 percent of gas estimated to lie onshore within 100 miles of the coast, particularly in Russia’s North Caucasus region. The remaining 12 billion barrels of oil and 56 Tcf of natural gas are believed to be variously located further onshore in the large Caspian Sea basins, mostly in Azerbaijan, Kazakhstan, and Turkmenistan. The area accounts for an average of 17 percent of the total oil production of the five littoral states that share its resources, on average totalling 2.5-2.9 million barrels per day (mbpd).

[..] the legal designation of the Caspian as either a ‘sea’ or a ‘lake’ would have far-reaching repercussions on the assignment of revenues from it. If it was designated a sea then coastal countries would apply the ‘United Nations Convention on the Law of the Sea’ (1982), in which event each littoral state would receive a territorial sea up to 12 nautical miles, an exclusive economic zone up to nautical 200 miles, and a continental shelf. In practice, this would mean that countries such as Turkmenistan and Azerbaijan would have exclusive access to offshore assets that Iran would not be able to access. If it was designated a lake – and this was the informal designation before the August agreement – then the countries could use the international law concerning border lakes to set boundaries, by which each country effectively possesses 20 percent of the sea floor and surface of the Caspian.

In the preparations for the signing of the ‘Convention on the Legal Status of the Caspian Sea’ last August, Iran had engaged lawyers to challenge the established 20 percent share that each littoral state had informally agreed upon, based on the fact that Russia should have used its own original 50 percent share to make good stakes for its former USSR states. [..] Moscow was the prime mover in having the Caspian designated as a sea, not a lake. This was on the basis that because Russia had opened up the channel from the Volga River into the Caspian to prevent the levels dropping, the Caspian no longer conformed to the legal definition of a lake, which is that it is a localised water deposit standing independent of any river that serves to feed it.

[..] “This meant, effectively, that Russia could divide up the shares as it saw fit, and the way it saw fit was to benefit its existing ally, Kazakhstan, which was assigned a 28.9 percent share, and its wished-for ally, Azerbaijan, which secured a 21 percent stake, while Russia saw a slight increase, to 21 percent, while Turkmenistan’s share goes down to 17.225 percent, as it is seen as a softer touch by Russia, and Iran’s share goes down to just 11.875 percent,” said the Iran source. “This switch from 50 percent to just over 11 percent means that Iran will lose at least US$3.2 trillion in revenues from the disputed and lost value of energy products going forward,” concluded the Iran source.

Read more …

Can’t catch a break: “we would have to fly with a burning wing for up to three hours before we could safely land..”

Pilots Reveal Safety Fears Over Boeing’s Fleet Of Dreamliners (O.)

Airline pilots have voiced fears over the safety of a fleet of Boeing aircraft after a crucial fire-fighting system has been found to have the potential to malfunction. Boeing has issued an alert to airlines using its flagship B787 Dreamliner, warning that the switch used to extinguish an engine fire has failed in a “small number” of instances. The switch also severs the fuel supply and the hydraulic fluid to prevent flames spreading. UK airlines Tui, British Airways and Virgin Atlantic operate more than 60 Dreamliners between them. The US regulator, the Federal Aviation Administration (FAA), has decided not to ground the fleet, despite admitting a “risk to the flying public”.

Pilots, however, claim that the safety of passengers and crew is being compromised. “If there was an engine fire on a transatlantic flight and the aircraft had one of the defective fire switches, then we would have to fly with a burning wing for up to three hours before we could safely land,” a pilot with a British airline told the Observer. In its alert to airlines, Boeing warns that long-term heating can cause the fire switch to stick in the locked position so it can’t be used to release the two fire extinguishers in each engine.


[..] “Boeing insists that the risk of an engine fire is very low, and that’s true, but it’s Boeing’s attitude to the risk that has upset us, especially in light of recent B737 Max issues. If the fire switch malfunctions, there’s no manual override to deploy the engine fire extinguishers and therefore no way of putting out a fire, but Boeing says that it’s fine, and the airlines agree. Such is the fear of Boeing’s power that no one dares speak out.”

Read more …

More. And more.

Record CO2 Emissions In 2018 Driven By Surging Use Of Gas (CB)

Last year saw record levels of CO2 emissions, gas and oil use, and installations of renewable energy, according to new global data from oil giant BP. Gas was the largest driver of energy-use growth in 2018, responsible for more than 40% of the increase. This, along with increased use of oil and coal, led to global CO2 emissions rising by 2% in 2018, the largest year-on-year increase in seven years. Renewable energy sources were the largest source of new electricity generation worldwide for the third year in a row, driven primarily by the growth of wind and solar generation. Wind and solar grew at their second fastest rate on record, driven by growth in China, though the growth in wind and solar generation in the US, EU, and India was slower in 2018 than in 2017.

However, there is a constantly growing gap between today’s energy use and what would be needed to meet the goals of the Paris Agreement, given that emissions must, according to scientists, reach net-zero by mid-century to avoid dangerous levels of global warming. Energy use grew in 2018 at a rate of 2.9%, the largest growth since 2010. China, the US and India accounted for more than two-thirds of global energy-use growth, with US energy use expanding at the fastest rate for 30 years. Energy use increased by 390m tonnes of oil equivalent (Mtoe) in 2018. Fossil fuels were responsible for 71% of this, while near-zero-carbon energy sources, including solar, wind, hydro and nuclear, were responsible for 29%.


Natural gas represented the single largest contributor to global energy-use growth in 2018, increasing by 5.3% compared to 2017. It alone was responsible for 40% of the increase in total energy use. Non-hydro renewables grew by 14.5% in 2018. This was the largest relative growth of any energy source, though it was still below the record growth experienced in 2017. Non-hydro renewables now represent 4% of global energy use, with all zero-carbon sources representing 15% of global energy. Oil consumption grew by 1.5% in 2018, with China and the US contributing around 85% of the growth in oil use. This growth was primarily concentrated in the transportation sector, reflecting increased vehicle ownership and miles driven.

Read more …

Oil.

Hundreds Of Dolphins Have Died Along Gulf Coast Since February (AP)

At least 279 dolphins have become stranded across much of the US Gulf Coast since the start of February, triple the usual number, and about 98% of them have died, scientists from the National Oceanic and Atmospheric Administration (Noaa) said. Scientists will investigate whether lingering effects from the 2010 BP oil spill and more immediate effects from low salinity because of freshwater flowing from high rivers and a Louisiana spillway contributed to the deaths, said Teri Rowles, coordinator for Noaa fisheries’ marine mammal health and stranding response program. BP spill effects included problems with lungs and adrenal glands, which produce stress-related hormones; blood abnormalities; and general poor condition, according to earlier reports.

Those reports said the spill contributed to the Gulf of Mexico’s largest and longest dolphin die-off. “We do know some of the health conditions … are improving, but some have been slow to improve,” Rowles said on Friday. “Reproduction in the heaviest-oiled areas continues below normal.” Erin Fougeres, administrator for the marine mammal stranding program in Noaa fisheries’ south-east region, said 23% of the dolphins stranded from Louisiana to the Florida Panhandle had sores consistent with freshwater exposure. Such lesions are “not uncommon” in the spring, according to Noaa’s website. Mississippi had 121 dolphin strandings as of Wednesday, with 89 in Louisiana, 32 in Alabama and 37 in Florida, Fougeres said.


Moby Solangi, director of the Institute of Marine Mammal Studies in Gulfport, Mississippi, put that state’s total on Thursday at 126, and said the opening of the Bonnet Carré spillway was at least partly to blame.The effects were worse for Mississippi’s dolphins than the BP spill was, he said, noting that 91 dead dolphins were found in Mississippi during all of 2010. Dolphins continued to die for years because of oil spill damage, a 2015 study reported. Freshwater exposure “doesn’t appear to be the cause of death for all animals, so that’s something we’re continuing to investigate”, Fougeres said. Rowles noted that 70% of the carcasses were too decomposed for necropsy.

Read more …

There must be better ways.

Namibia Forced By Drought To Auction 1,000 Wild Animals (AFP)

Drought-hit Namibia has authorised the sale of at least 1,000 wild animals – including elephants and giraffes – to limit loss of life and generate US$1.1 million for conservation, the authorities confirmed Saturday. “Given that this year is a drought year, the [environment] ministry would like to sell various type of game species from various protected areas to protect grazing and at the same time to also generate much needed funding for parks and wildlife management,” the environment ministry spokesman Romeo Muyunda said. The authorities declared a national disaster last month, and the meteorological services in the southern African nation estimate that some parts of the country faced the deadliest drought in as many as 90 years.

“The grazing condition in most of our parks is extremely poor and if we do not reduce the number of animals, this will lead to loss of an animals due to starvation,” Muyunda said. In April, an agriculture ministry report said 63,700 animals died in 2018 because of deteriorating grazing conditions brought on by dry weather. Namibia’s cabinet announced this week that the government would sell about 1,000 wild animals. They include 600 disease-free buffalos, 150 springbok, 65 oryx, 60 giraffes, 35 eland, 28 elephants, 20 impala and 16 kudus – all from national parks. The aim is to raise $1.1 m that will go towards a state-owned Game Products Trust Fund for wildlife conservation and parks management.


The government said there were currently about 960 buffalos in its national parks, 2,000 springbok, 780 oryx and 6,400 elephants. The auction was advertised in local newspapers from Friday. Namibia, a country of 2.4 million people, has previously made calls for aid to assist in the drought emergency that has already affected over 500,000 people.

Read more …

 

 

 

 

 

Jun 112019
 


James Ensor Baths at Ostend 1890

 

1 in 4 Americans Skip Medical Treatment Because They Worry About the Cost (M.)
House Committee To See Mueller Evidence (AP)
Was Mueller The Wrong Man To Investigate Trump? (G.)
Big US Defense Merger Touts Tech, But Trump Has Questions (AFP)
Google Earned $4.7 Billion From News Organizations In 2018 (RT)
Kim Dotcom Fights U.S. Extradition in New Zealand Court (AP)
We Have Nothing to Lose but Our Debts – Varoufakis (Jacobin)
China’s Rare Earth Monopoly Is Diminishing (ZH)
The Problem With Billionaires Fighting Climate Change (G.)
Canada Bans Capture And Breeding Of Dolphins, Whales (AFP)
Forest Twice Size Of UK Destroyed In Decade For Big Consumer Brands (G.)
The Permafrost Thawing Nightmare (CP)
Honey Bee Colonies Across Europe Plunge 16% (ZH)
Americans’ Extinction Denial Syndrome (CP)

 

 

Yeah, well, what do they know?

“48% of Americans said they believe the quality of the U.S. health care system is “the best or among the best in the world.”

1 in 4 Americans Skip Medical Treatment Because They Worry About the Cost (M.)

One in four Americans chose not to receive treatment for a health issue over the last year due to its high cost, according to a new survey released by Gallup and West Health, a health care nonprofit. Not only that, but 45% of Americans worry a major health issue could send them into bankruptcy and 19% have delayed purchasing medicine due to its cost. The findings, released Tuesday, display the personal and financial impacts caused by the rising cost of health care in the United States. Tens of millions of Americans are borrowing money to afford health care and cutting out other household expenses. And Americans share a concern over the rising cost of health care and how it will impact their finances and the U.S. economy.


Indeed, Americans borrowed around $88 billion to pay for health care over the last year, the study found. About 12% of Americans borrowed money for health care, and 23% cut back on household spendings to afford it. Health care spending in the U.S. rose to $3.5 trillion in 2017 — a 3.9% jump from 2016. In 2017, the U.S. spent more than $10,700 on health care per person. The U.S.’s health spending per capita far exceeds those of other countries, according to data from the Organization for Economic Co-operation and Development. Forty-eight percent of Americans said they believe the quality of the U.S. health care system is “the best or among the best in the world.” But when asked about the quality of care compared to costs, 31% said it was “worst of among the worst in the world.”

Read more …

It will never stop.

House Committee To See Mueller Evidence (AP)

The House judiciary committee expects to receive the first files of underlying evidence from Robert Mueller’s report soon, after a sudden shift by the justice department as Democrats weigh impeachment proceedings against President Donald Trump. It is unclear if the deal, announced moments before the start of a judiciary committee hearing with Watergate star witness John Dean, will ultimately be enough for Democrats, who have called for the full, unredacted report and underlying documentation from the special counsel’s work. However, it signalled the first real breakthrough in the standoff over the report and came at the start of a week of increased activity by the House in the Trump-Russia investigation.

The Republican senator for New York, Jerrold Nadler, , the chairman of the committee, said the justice department will provide some of Mueller’s “most important files” and all members of the committee will be able to view them. He said the files will include those used to assess whether Trump obstructed justice. In response to the agreement, Nadler said the panel will not vote to hold the attorney general, William Barr, in criminal contempt, for now. But the House will still vote on a resolution on Tuesday that would empower the committee to file a civil lawsuit for the materials, if Democrats decide to do so.

[..] Dean, a White House counsel under Richard Nixon who helped bring down his presidency, testified on Monday that Mueller had provided Congress with a “road map” for investigating Trump. He said he saw parallels between Mueller’s findings regarding Trump and those of congressional investigators looking into Nixon’s administration decades ago. He pointed to the way the presidents used their pardon power in an attempt to influence witness testimony, and their efforts to seize control of the investigation and direct the efforts of prosecutors.

Read more …

He was because he didn’t deliver Trump’s head on a plate.

Was Mueller The Wrong Man To Investigate Trump? (G.)

In so many ways, Robert Mueller was the right man for the job. The former special counsel was fast, precise, ran a tight ship and, working in a hyper-partisan environment under the full glare of history, Mueller managed to investigate and document a historic attack on the United States while retaining the public trust. But one week after Mueller first spoke out about his investigation of Russian election tampering and the Donald Trump campaign, concern has sharpened that in one big way – potentially the biggest way – Mueller was exactly the wrong man for the job.

For when the pursuit of justice took Mueller into unprecedented terrain – as the special counsel’s investigation came under sustained public attack by the president and the attorney general, William Barr – Mueller failed, his critics say, both to stand up for his investigation and to get the word out to the American people about what he had found. “To my mind, this is a Shakespearean-level tragedy,” said Patrick Cotter, a former federal prosecutor who was part of the team that convicted the Gambino family boss John Gotti. “It is the tragedy of the principled person, who is constrained by principle, being opposed by the completely unprincipled – Barr, and the president, and their lackeys.

“The principled are chained, and the unprincipled romp free. And in a debate over reality, the unprincipled will always win, because they will just lie, and they will make reality whatever they want it to be.” Congressional Democrats convened hearings on the Mueller report on Monday, and the judiciary committee chairman, Jerry Nadler, has said he would call Mueller to testify about the 11 instances of potentially criminal obstruction of justice committed by Donald Trump and his campaign that the Mueller report documents. But Mueller has refused, and has said he will continue to refuse, in discussions of his findings, to go beyond the language in his report, which declines to weigh evidence against the president while leaving open the possibility that crimes were committed.

Read more …

Unholiness.

Big US Defense Merger Touts Tech, But Trump Has Questions (AFP)

Executives from United Technologies and Raytheon said Monday their merger would benefit the Pentagon and other customers but the proposed deal garnered immediate skepticism from President Donald Trump. The two companies, which unveiled a “merger of equals” on Sunday, said combining would boost development of faster weapons systems, connected aircraft and other envelope-pushing products, while saving the Pentagon and other customers money. But Trump, who has shown more willingness than past US presidents to haggle with defense contractors and interject himself into the private sector in general, emerged as a potential question mark, telling CNBC Monday that he was “concerned” by the merger.


“When I hear they’re merging, does that take away more competition? It becomes one big fat beautiful company,” he told CNBC. “But I have to negotiate, meaning the United States has to buy things, and does that make it less competitive? Because it’s already non-competitive.” Moments after Trump’s comments, United Technologies Chief Executive Gregory Hayes said on CNBC that the two companies currently have almost no overlap and that their combination would not dent competition. [..] The UTC merger with Raytheon would transform the two companies into a single conglomerate with varied but well-established brands, each in the top tier of its specialty. The two companies together would have about $74 billion in 2019 sales, according to the announcement.

Read more …

Do no evil.

Google Earned $4.7 Billion From News Organizations In 2018 (RT)

An explosive new report details how Google earned a whopping $4.7 billion in ad revenue from news organizations online in 2018, while the entire US news industry made a combined $5.1 billion from digital advertising.
The study, by the News Media Alliance, reveals the extent to which the tech giant profits from the work of web journalists and digital news organizations by monetizing Google search and Google News. According to the study, some 40 percent of clicks on Google’s trending queries are news-related, all of which are monetized. “They make money off this arrangement,” said President and CEO of the News Media Alliance David Chavern who argues that journalists and content creators deserve a cut of that money, “and there needs to be a better outcome for news publishers.”

Google does not pay for the content but generates web traffic clicks, and thus revenue, by sharing headlines and news summaries from various outlets verbatim. Furthermore, the $4.7 billion figure is a conservative estimate as the analysis didn’t factor in the personal user data collected by Alphabet, Google’s parent company, which can be further monetized. Details from the report generated a very mixed reception among journalists and media workers who particularly drew attention to the revenues built up by Google while news outlets increasingly lay off staff. What also seemed unjust is that the snippet Google shows “is all anyone cares about,” and readers don’t bother actually clicking into the full story. “Google should license/pay for this,” one commenter suggested.

People do realize though that the relationship between the tech company and news media is more complicated, saying that when Google “makes money on news it’s by serving ads ON publishers’ sites.” According to the newly-launched Save Journalism Project some 2,400 journalists have been laid off in the US so far in 2019 while 32,000 have lost their jobs in the last 10 years. They estimate 63 percent of digital ad revenue is controlled by Google and Facebook, the remainder falling under the auspices of Amazon, Twitter and Microsoft, among others.

Read more …

New Zealand’s under intense pressure to break its own laws.

Kim Dotcom Fights U.S. Extradition in New Zealand Court (AP)

Internet entrepreneur Kim Dotcom and three of his former colleagues on Monday took their fight against being extradited to the U.S. to New Zealand’s top court. The Supreme Court began hearing arguments in the seven-year-old case after Dotcom and the others lost several previous court rulings. But even if the men lose their latest appeal, they have legal options which could keep their case alive in the New Zealand court system and delay any extradition for several more years. U.S. authorities in 2012 shut down Dotcom’s file-sharing website Megaupload and filed charges of conspiracy, racketeering and money laundering. If found guilty, the men could face decades in prison.

Megaupload was once one of the internet’s most popular sites. U.S. prosecutors say it raked in at least $175 million, mainly from people using it to illegally download songs, television shows and movies. Ira Rothken, one of Dotcom’s lawyers, said in an interview that if anyone did something illegal in relation to Megaupload, it was the users. “This case is all about trying to hold Megaupload and Kim Dotcom and the others responsible for the acts of users,” Rothken said. “And we’re saying you can’t do that. You can’t do that in the United States and you can’t do that in New Zealand.” The Supreme Court has scheduled five days to hear the appeal. After that, it could take them several months to issue their decision.

Should the Supreme Court uphold the earlier court rulings and find the men are eligible for extradition, then New Zealand’s Justice Minister Andrew Little would need to make the final decision on whether the extraditions should proceed. And Little’s decision could also be appealed in the courts.

Read more …

Greece has snap elections on July 7. It won’t be pretty.

We Have Nothing to Lose but Our Debts – Varoufakis (Jacobin)

Amid the bad results for the Left in the European elections, the Greek outcome was particularly poignant. In the last such contest in 2014, Syriza rode the revolt against austerity to become the largest single party, in its final step toward national office. Five years later, in last month’s election, it finished ten points behind the right-wing New Democracy. And where once Syriza promised to spark change throughout the EU, it is now the best student of the neoliberal dogma “There Is No Alternative.” After four years of slashed pensions, sell-offs of state assets, and even a right-wing turn on foreign policy, Syriza is now also set to lose office.

Indeed, not only did Alexis Tsipras’s party enforce an even harsher austerity than its predecessors ever dreamt of, but as snap general elections loom, it is set to become an exhausted opposition to a sharply reactionary New Democracy government. Polls for the July 7 vote suggest the conservatives have a massive lead, and could even secure an absolute majority in parliament. The hollowing out of Syriza’s base is the expression of disappointment and despair. But there are also signs that some of its voters are turning to left-wing alternatives. Former finance minister Yanis Varoufakis’s MeRA25 party achieved a particularly creditable result in the European contest, less than four hundred votes from electing a member of the European Parliament.

As Greece heads to a fresh general election, MeRA25 hopes to elect its first members of parliament, offering a platform for its call to replace austerity with Europe-wide investment. Jacobin’s David Broder spoke to Varoufakis about the effect of Syriza’s defeat on the wider European left, the prospects of a realignment of EU politics, and MeRA25’s own plans for a “political revolution” in Greece.

Read more …

Still substantial.

China’s Rare Earth Monopoly Is Diminishing (ZH)

Some while ago, precious rare earths important in the production of microchips, electronics and electric motors were almost exclusively sourced in China. However, as Statista’s Katharina Buchholz points out, in recent years, several nations have picked up production again while new players entered the market, diversifying it at least to some degree. Yet, China was still responsible for more than two thirds of global production, according to the U.S. Geological Survey. But as many countries are wary of depending on China, especially when it comes to technology products, countries with rare earth deposits are likely to exploit them further.

China also has the largest know deposits of rare earths, but Brazil, Vietnam and Russia also have a lot of (largely) untapped potential in the sector. The United States, together with Australia, emerged as a major producer of rare earths after 2010. The country, which has produced rare earths before for military uses, got back into the market as rare earths were getting more important as a part of the implementation of crucial technologies.

Read more …

The problem here is calling Bloomberg a benevolent billionaire.

The Problem With Billionaires Fighting Climate Change (G.)

Before the financial crisis, the top 1% held a collective $15bn in cash. Today they’ve got almost $304bn. And while the yachts and frequent flying habits of the wealthy are a pox on the planet, so is the fact that they now have more money than ever to throw into world-wrecking investments, buying off politicians and lobbying for their pet causes – namely, to let them keep doing more of the same. For every Michael Bloomberg there are dozens of Koch Brothers and Rebekah Mercers, who’ve poured tens of millions of dollars into spreading climate denial and blocking de-carbonization efforts at the local, state and national level. None of them should have as much money as they do.

The climate crisis isn’t going to be solved with the benevolence of a couple of billionaires, and their outsized control over our politics and economy stands in contradiction to our hopes for a liveable future. With rightwing populism on the rise around the world, having elites like Bloomberg as the public face of the climate fight is also risky politics. We don’t need their money to fund the Green New Deal – the US has more than enough for that – but we should take it anyway, with a far more progressive tax system than the one we’ve got. If that sounds radical, it’s worth remembering that the top marginal tax rate during the time hailed as capitalism’s Golden Age floated somewhere north of 90% in the US.

After it’d already fallen, Ronald Reagan’s administration collapsed it to 50% when he took office, and it would dip to just 28% by the time he left. The many billions that have been lost as a result are resources that have been captured out of democratic control, emboldening a handful of oligarchs to run roughshod over people and planet alike.

Read more …

100 years too late at least.

Canada Bans Capture And Breeding Of Dolphins, Whales (AFP)

Canada’s parliament on Monday approved a bill banning the capture and breeding of cetaceans such as whales and dolphins in a move hailed by animal rights activists. The bill, first proposed in 2015 and now awaiting symbolic royal approval, will not apply retroactively, meaning captive marine mammals can stay confined. And it will contain exceptions for marine mammals who require rehabilitation following an injury, or in other cases authorized by authorities. “This is such an important law because it bans breeding, making sure the whales and dolphins currently kept in tiny tanks in Canada are the last generation to suffer,” Melissa Matlow, campaign director for World Animal Protection Canada, said in a statement.


“We hope other countries will now follow Canada’s lead and that travel companies will also realize the declining acceptance for these types of attractions.” “Canada is now one of 11 leading countries that have taken a progressive stand against the keeping and breeding of whales, dolphins and porpoises for entertainment,” with Costa Rica and Chile among the others, said Nina Devries, the spokeswoman for the animal rights group. A backlash has been growing in recent years against theme parks that showcase whales and dolphins.

Read more …

“Meat consumption is set to rise by 76%… Soya production is also predicted to soar by almost 45% and palm oil by nearly 60%..”

Forest Twice Size Of UK Destroyed In Decade For Big Consumer Brands (G.)

An area twice the size of the UK has been destroyed for products such as palm oil and soy over the last decade, according to analysis by Greenpeace International. In 2010, members of the Consumer Goods Forum, including some of the world’s biggest consumer brands, pledged to eliminate deforestation by 2020, through the sustainable sourcing of four commodities most linked to forest destruction: soya, palm oil, paper and pulp, and cattle. But analysis by Greenpeace International suggests that by the start of 2020, an estimated 50m hectares (123m acres) of forest are likely to have been destroyed in the growing demand for and consumption of agricultural products, in the 10 years since those promises were made.

Its report, Countdown to Extinction, said that since 2010, the area planted with soya in Brazil has increased by 45% and palm oil production in Indonesia has risen by 75%. The environmental group accused major brands of failing to meet their commitments and warned that the current situation was “bleak”, advising them to evolve in order to “prevent climate and ecological breakdown”. Deforestation releases greenhouse gas emissions that contribute to climate change and destroy important habitat, threatening species with extinction. Greenpeace says it wrote to more than 50 traders, retailers, producers and consumer companies early in 2019 asking them to demonstrate progress towards deforestation by disclosing their commodity suppliers.

Only a handful replied and all of those that did disclose the requested information source products from traders or producers involved in forest destruction, they said. None of the 50 demonstrated “meaningful” action to end deforestation, the campaigners said, based on assessing their policies and publicly available supply chain information. [..] About 80% of global deforestation is caused by agricultural production [..] Agricultural consumption, and therefore production, is forecast to rise globally. Meat consumption is set to rise by 76% according to some estimates. Soya production is also predicted to soar by almost 45% and palm oil by nearly 60%, according to the Food and Agriculture Organisation.

Read more …

Speeding up. Methane.

The Permafrost Thawing Nightmare (CP)

Permafrost covers 25% of the Northern Hemisphere. It is the world’s largest icebox, and its landmass is 4.5xs larger than Antarctica, 6.5xs larger than the United States. It is stuffed full of carbon locked in frozen ground accumulated over eons, which, by way of contrast, makes coal power plant emissions look bush-league. Most notably, permafrost has an image of permanence and slow/gradual change, “the sloth of the north.” But, that slothful image is now out-of-date. Global warming has changed the equation. Nowadays, permafrost disintegration is officially hot news.

Scientists that have long studied the gradual thawing of permafrost are now experiencing a dramatic switch from their former “eyes wide shut” viewpoint, i.e., refusing to see something that’s in plain view because of preconceived notions. That slothful image of yesteryear has been shattered via numerous studies, as for example: Merritt Turetsky, Canadian Research Chair in Integrative Ecology, University of Guelph, “Rapid Permafrost Thaw Unrecognized Threat to Landscape, Global Warming Researcher Warns,” Nature d/d May 1, 2019. Gradual permafrost thaw is now passé: “Turetsky and an international team of researchers are looking at something very different: Rapid collapse of permafrost that can transform the landscape in mere months through subsidence, flooding and landslides,” Ibid.

Based upon observations as recorded by the Turetsky research team, a climate crisis has already set in. It is here now: “We work in areas where permafrost contains a lot of ice, and our field sites are being destroyed by abrupt collapse of this ice, not gradually over decades, but very quickly over months to years,” said Turetsky. According to team member Miriam Jones, a U.S. Geological Survey research geologist: “This abrupt thaw is changing forested ecosystems… resulting in a wholesale transformation of the landscape that not only impacts carbon feedbacks to climate but is also altering wildlife habitat and damaging infrastructure.” “It’s happening faster than anyone predicted,” Turetsky.

Read more …

“Portugal, Northern Ireland, Italy, and England had the most significant colony collapses of more than 25%..”

Honey Bee Colonies Across Europe Plunge 16% (ZH)

The total number of honey bee colonies across Europe plunged 16% over the winter 2017–18, according to COLOSS (Prevention of honey bee COlony LOSSes), an international, non-profit organization based in Switzerland, tasked with the goals of protecting honey bees. Allison Gray, the lead researcher on the study, sent a COLOSS questionnaire to 25,363 beekeepers in 36 countries: 33 in Europe, plus Algeria, Israel, and Mexico. [..] Gray and her team determined that Portugal, Northern Ireland, Italy, and England had the most significant colony collapses of more than 25%. The authors noted that smaller bee farms experienced higher loss rates than large-scale ones.

“The overall loss rate in winter 2017/18 was highest in Portugal (32.8%), a new country to the survey. Other countries with high losses (above 25%) were Slovenia, Northern Ireland, England, Wales, Italy, and Spain, countries mostly in Western Europe,” wrote Gray. [..] The colony collapse of honey bees is a complex issue, wrote Gray, and are frequently caused by volatile weather or natural disasters rather than climate. And there is no solution at the moment. She noted that future investigations should be conducted into the impact of pesticides, and herbicides on honey bees.


Not too long ago, we reported that honey bees exposed to glyphosate, the active ingredient in Roundup, lose critical bacterial in their guts and are more susceptible to infection and death from harmful bacteria. It showed how glyphosate is possibly contributing to a rapid decline of honey bees around the world, otherwise known as Colony Collapse Disorder (CCD), a phenomenon that occurs when the majority of worker bees in a colony disappear and leave behind the queen.

Read more …

“What are Americans thinking? Are they even thinking?”

Americans’ Extinction Denial Syndrome (CP)

When I go into a Lowe’s or Home Depot store to buy plumbing or electrical supplies, I’m assaulted as soon as I go in the door by the smell of lawn chemicals. Plastic jugs of Roundup are stacked six feet high right near the entrance of these stores for easy grabbing by shoppers heading for the garden supply area. At Costco, I found myself in line at the checkout counter behind a man who had a huge bag of grass seed that the label on the bag promised was already treated with “fertilizer and weed killer for a perfect lawn.”The weed killer, I discovered on checking further, is of course Roundup.

Most of Europe has banned Roundup because of both a determination that is carcinogenic and because its widespread use has been linked to the decimation of the world’s bees, essential for the pollination of some 90 percent of all plants and of 30 percent of food crops, and Monsanto/Bayer has so far lost three major lawsuits levying a total of over $2.4 billion in punitive damages against the company for cancers found caused by their glyphosate herbicide. Yet despite all this, the American public wants its pristine green lawns, unblemished by dandelions and other transgressors like violets, buttercups and wild strawberries. Glyphosate cancer risk and bee die-offs be damned!

Mentioning this bizarre attitude to the woman at HealthGuard, she replied, “I know. It’s crazy. People actually tell me they’re stocking up on Roundup because they say, ‘I’m sure the government is going to ban it eventually, but it really works, so I want to have it to use.’” This is a bit like the people who insist on buying incandescent light bulbs and stocking up on them for fear they’ll eventually disappear, even as LED lighting keeps getting better and cheaper, and uses a fraction of the electricity required by incandescent light bulbs. In our house, switching to LEDs has reduced our electrical bill by nearly two-thirds, lighting being the main share of our home’s electrical use.

What are Americans thinking? Are they even thinking?

Read more …

 

There is a snow leopard in this photo. Click for larger picture.

 

 

 

 

Jun 082019
 
 June 8, 2019  Posted by at 8:44 am Finance Tagged with: , , , , , , , , , ,  


Georges Seurat Study for “A Sunday on La Grande Jatte” 1884

 

Freeing Julian Assange: Part One (Suzie Dawson)
WikiLeaks Warns US Preparing More Charges Against Assange (Wsws)
YouTube, Facebook Purges Are More Extensive Than You Think (Taibbi)
Too Much Money -And Too Few Places To Invest It- (Axios)
Putin Says UK’s Next Prime Minister Should ‘Forget About’ Skripal Attack (Ind.)
Going Where, Exactly? (Kunstler)
Orwell’s Classic ‘1984’ Turns 70 Amid Enduring Interest (AFP)
Boeing Delayed Fix Of Defective 737 MAX Warning Light For Three Years (R.)
Russia-China: a Strategic Alliance for the 21st Century (SCF) /span>
Our Dying World (CP)
Why Replace Dolphins With Oil Drilling? (G.)
The White Man Is Our Finishing Off Our Planet And We Want To Defend It (CD)

 

 

Excellent by Suzie. Who fears for her life and freedom for writing it. She has been living in exile in Moscow.

All of WIkiLeaks has been hit by sex smears. Which destroyed all of their reputations, businesses, etc.

Freeing Julian Assange: Part One (Suzie Dawson)

Julian Assange controlled policy, process, publishing and protected sources. He established satellite organisations and was the managing director of the WikiLeaks empire. Jacob Appelbaum went on stages around the world, speaking to hundreds of thousands of people about the value and importance of utilising and supporting WikiLeaks. He was a major conduit to the tech crowd and a constant presence at developer, privacy and journalism conferences. Trevor Fitzgibbon liaised with media bigwigs, musicians and celebrities, recruiting them to the cause and utilising them to enhance WikiLeaks public profile. He managed media relationships, engineered and pushed proactive narratives.

These three men relentlessly championed WikiLeaks. These three men built the original campaign to save Chelsea Manning. These three men helped to save Edward Snowden. These three men all had their public reputations destroyed. You don’t have to look hard on social media or the web to see how often Julian Assange is described as a serial rapist. Nor to discover that Jacob Appelbaum is described as a serial rapist too. And Trevor Fitzgibbon? Yup, also called a serial rapist. What is the likelihood of all three public figures representing the key pillars of WikiLeaks, conveniently being serial rapists? In retrospect, it defies logic. In aggregate, the subterfuge is so obvious as to be ludicrous. But when the CIA is targeting you there’s always more in store. One rapist, two rapists, three rapists, four.

When celebrated Icelandic journalist Kristinn Hrafnsson was appointed Editor-in-Chief of WikiLeaks in October 2018, the announcement was lauded across the aisles. The accolades would be short-lived however, as within a week of his accepting the mantle, he was being smeared as “a hostile and abusive person toward women“, and a “violent drunk with a history of being physically and emotionally abusive of women”. The wording of the smear article is as limp as the accusations – “An air of allegations… He may now face allegations… unable to independently confirm the veracity of these allegations…” No victims came forward. No charges were filed. No investigation launched. They just threw their mud at the new head of the WikiLeaks publishing pillar and hoped it would stick, as it had with the others.

Read more …

“In its statement, WikiLeaks warned: “While the case would collapse in the US due to the prosecution’s reliance on testimony by Thordarson and Monsegur, who are not credible witnesses, the United States can conceal their witnesses’ identities during UK extradition proceedings in order to boost their chances of winning.” It continued: “This will make it impossible for Assange to challenge the credibility of the witnesses during UK extradition proceedings, which will commence on 14 June.”

WikiLeaks Warns US Preparing More Charges Against Assange (Wsws)

The US Justice Department is preparing even more charges against journalist and publisher Julian Assange, WikiLeaks warned Thursday. The charges, WikiLeaks said, would be based on the testimony of Sigurdur Thordarson, an FBI informant previously convicted of fraud, who recently travelled to the United States to answer questions aimed at preparing a new indictment. The news came the same day as fresh warnings about the deterioration of Assange’s health. Assange’s father, John Shipton, was scheduled to visit his son in Belmarsh Prison but was turned away and told Assange was seeing a doctor for an apparently urgent visit. “My visit was double-booked, it has been cancelled,” he told Australia’s Herald Sun. “[The doctor’s visit] must be at short notice because a double booking occurred.”

Earlier this week, UN Special Rapporteur on Torture Nils Melzer warned that Julian Assange could die in prison if his persecution is not stopped immediately. When ABC reporter Philip Williams asked Melzer, “If your calls are ignored, do you fear that he could actually die in prison?” he replied, “Absolutely, yes. That’s a fear that I think is very real.” The Trump administration has until June 14 to present its full request to Britain for Assange’s extradition. The current indictment includes 18 charges, over Assange’s role in the exposure of US war crimes and global diplomatic conspiracies, carrying a maximum sentence of 175 years’ imprisonment. WikiLeaks’ press release, however, stated that the US is likely preparing a superseding indictment. It would include the already unveiled charges, along with new counts against Assange.

WikiLeaks’ press release, however, stated that the US is likely preparing a superseding indictment. It would include the already unveiled charges, along with new counts against Assange. WikiLeaks noted: “Dutch public broadcaster NOS reported that Sigurdur Thordarson was flown to the United States last week where he was ‘comprehensively interrogated,’ in preparation for the filing of a new superseding indictment against Julian Assange by the end of next week.” [..] The FBI informant has no credibility. He has a lengthy record of involvement in illegal spying and state provocations, along with a criminal record encompassing convictions for embezzlement, fraud and sex crimes against minors. Thordarson could not be considered a reliable or honest witness in any prosecution that upheld the right to due process for the accused.

[..] Within a year of his involvement, Thordarson was suspected by WikiLeaks of stealing from the organisation. He was subsequently convicted in Iceland in 2014 of 18 theft-related charges[..] In August 2011, Thordarson claims that he contacted the US embassy in Reykjavik, offering to assist in the “ongoing criminal investigation in the United States” against Assange. He was rapidly picked up as an informant by the FBI. By his own admission, Thordarson met with FBI agents multiple times in Reykjavik between 2011 and 2012. During that period, US authorities flew him to Denmark three times and to the US on one occasion, for secret meetings about WikiLeaks. Thordarson provided the FBI with eight hard drives of material he claimed was from WikiLeaks. He received thousands of dollars from the US government.

Read more …

“Legitimate journalists are again being caught in the wash of internet cleanups..”

I like Taibbi, but not this. Talking about “Legitimate Journalists” is far too slippery a slope. What makes a journalist legitimate? Being employed by MSM? Is Assange a journalist? (the term invites that discussion). Moreover, he invites YouTube and Facebook to censor people, but only the “illegitimates”. Only the legal system can decide that, not social media.

YouTube, Facebook Purges Are More Extensive Than You Think (Taibbi)

If you turned on cable news this week, or read our own coverage in Rolling Stone, you might have heard about YouTube’s decision to demonetize well-known conservative commentator Steven Crowder. Crowder’s offense involved calling Vox journalist Carlos Maza a “lispy queer” and a “gay Vox sprite,” leading, says Maza, to further harassment. Much press commentary either cheered YouTube’s move or called it belated. Simultaneously, YouTube announced it would ban whole genres of videos that fell under a hate/conspiracy label. From a Yahoo news summary:


“YouTube announced Wednesday it would ban videos promoting or glorifying racism and discrimination as well as those denying well-documented violent events, like the Holocaust or the Sandy Hook elementary school shooting.” “Channels that repeatedly brush up against our hate speech policies will be suspended under our YouTube Partner Program.” Many greeted these stories with a shrug. If blue-state audiences even know who Steven Crowder is, they think he’s a jerk. And what could be wrong with removing videos “denying well-documented violent events”?

Read more …

“The top 1% of U.S. households are holding a record $303.9 billion of cash, a quantum leap from the under $15 billion they held just before the financial crisis.”

Too Much Money -And Too Few Places To Invest It- (Axios)

A truly bizarre trend is having an impact on the economy — wealthy people and corporations have so much money they literally don’t know what to do with it. Why it matters: At a time when growing income inequality is fueling voter discontent and underpinning an array of social movements, the top 1% of earners and big companies are holding record levels of unused cash. The big picture: U.S. companies raked in a record $2.3 trillion in corporate profits last year, while the country’s total wealth increased by $6 trillion to $98.2 trillion (40% of which went to those with wealth over $100,000). So, where is all the money going?

The IMF notes large companies around the world are overwhelmingly and uniformly choosing not to reinvest much of it into their businesses. They’re hoarding it in cash and buying back stock. “There are only 2 things that money can do — sit on a balance sheet unused, where it’s just earned income earning an interest rate of zero,” ICI chief economist Sean Collins points out. “Or it makes sense to release it to share buybacks or dividends.” • Companies could pay their workers more, but “that would be terrible for the stock market,” says Neil Shearing, chief economist at Capital Economics — half-jokingly. • Companies made a record $1.1 trillion in stock buybacks in 2018 and are on track to surpass that number this year.

But they still have record cash holdings of close to $3 trillion. Wealthy households and individuals are pouring money into asset managers, betting on companies that lose $1 billion a year, bonds from little-known Middle Eastern republics, and giving hot Silicon Valley start-ups more venture capital than they can handle. And private equity has seen so much cashflow that firms have $2 trillion of unused capital. But even that hasn’t been enough to account for all the new money. The top 1% of U.S. households are holding a record $303.9 billion of cash, a quantum leap from the under $15 billion they held just before the financial crisis.

Read more …

Trolling.

Putin Says UK’s Next Prime Minister Should ‘Forget About’ Skripal Attack (Ind.)

Britain’s next prime minister should “forget about” the poisoning of a former Russian double agent in Salisbury, Vladimir Putin has said. The Russian president said he hoped whoever succeeded Theresa May would see what he described as the bigger picture and move on from the Skripal attack. “When all’s said and done we need to turn this page connected with spies and assassination attempts,” Mr Putin said on the sidelines of an economic forum in St Petersburg. He described Sergei Skripal, a former colonel in Russian military intelligence who betrayed dozens of Russian agents to MI6, as London’s spy. “He’s your agent not ours. That means you spied against us and it’s hard for me to say what happened with him subsequently. We need to forget about all this in the final analysis,” he said.


[..] Mr Putin recalled his own experience working first for the Soviet Union’s KGB spy service and then Russia’s FSB security service. “Global issues linked with common national interests in the economic, social and security spheres are more important than games played by intelligence services,” he said. ”I’m talking to you as an expert, believe me. We need to cast off this fluff and get down to business.” [..] Mr Putin also issued a stern warning about the danger of a new arms race, accusing the United States on shunning talks on extending the New START nuclear arms reduction treaty, which is set to expire in 2021. He said while Russia had repeatedly signalled its intention to begin discussions on extending the pact, Washington had been unresponsive. “We have said 100 times already that we are ready, but no one is talking to us,” he claimed.

Read more …

“..consider instead the vista of a reduced population working in the fields and pastures to bring enough food out of the long-abused land to live through the next winter.”

Going Where, Exactly? (Kunstler)

Societies are self-organizing, emergent phenomena. They respond to the circumstances that reality presents, and they take us in unexpected directions. The general expectation in the USA since the Second World War has been for ever-increasing material comfort provided by an inexhaustible techno-industrial cornucopia, kind of a cosmic goodie machine. Well, we’d better adjust our thinking to the fact that the horn-of-plenty is shockingly out of goodies, and that no amount of financial hocus-pocus is going to refill it. Valiant attempts to redistribute the already-existing wealth are liable to prove disappointing, especially when the paper and digital representations of that wealth in “money” turn out to be figments — promises to pay that will never be kept because they can’t be kept.


So, instead of fantasizing about free PhD programs for everybody, and free insulin for the multitudes, consider instead the vista of a reduced population working in the fields and pastures to bring enough food out of the long-abused land to live through the next winter. Consider a world in which, if we are lucky, the electricity runs for a few hours a day, but possibly not at all. Imagine a world in which men and women actually function in different divisions of labor and different social spaces because they must, to keep the human project going. Imagine a world in which the ideas in your head about that world actually have to comport with the way the way that world really works — and the severe penalty for failing to recognize that. That’s the more likely world we’re heading into. It won’t put an end to dreams of utopias and cosmic rewards, but it will be a sobering moment in history.

Read more …

AFP of course can’t write this without referring to Trump.

Orwell’s Classic ‘1984’ Turns 70 Amid Enduring Interest (AFP)

Seventy years after its publication, George Orwell’s classic dystopian novel “1984” continues to fascinate readers, in particular youngsters growing up in a social media-dominated age of increasing angst. “Some students are very shocked by it, and remain shocked by it,” said Michael Callanan, an English teacher and director of the Orwell Youth Prize, which supports political expression amongst young people. “It is part of the paradox of a book being 70-years-old,” he added. “I think they were taken aback by how fresh and how true to our lives today it strangely is.” Written in 1948, and published the following year, “1984” depicted a chilling future world in which a totalitarian state controls people’s thoughts and actions, suppressing any dissent.


This rigidly-controlled society features a so-called “ministry of truth” that distorts reality, with the ever-watchful eyes of “Big Brother” keeping tabs on citizens’ behaviour. The novel introduced other terms that have endured in the lexicon, including “double-think”, which means “the power of holding two contradictory beliefs in one’s mind simultaneously, and accepting both of them”, according to Orwell. For Jean Seaton, director of the Orwell Foundation, which promotes the work of the writer who died in 1950 aged 46, and administers various awards, his masterpiece was “very prescient”. She noted the book’s description of “two minutes hate” – in which citizens watch a daily film inciting them to hate enemies of the state – as comparable to online hate-mobs today.

Read more …

Sinking further.

Boeing Delayed Fix Of Defective 737 MAX Warning Light For Three Years (R.)

Boeing Co learned that a cockpit warning light on its 737 MAX jetliner was defective in 2017 but decided to defer fixing it until 2020, U.S. lawmakers said on Friday. The defective warning light alerts pilots when two sensors that measure the angle between the airflow and the wing disagree. Faulty “angle of attack” data is suspected of playing a role in two deadly crashes involving Boeing’s best-selling 737 MAX in Indonesia in October and in Ethiopia in March. Those crashes, which killed 346 people, have triggered investigations by aviation regulators and U.S. lawmakers and left Chicago-based Boeing facing one of the biggest crises in its more than 100-year history.


Boeing decided in November 2017 to defer a software update to correct the so-called AOA Disagree alert defect until 2020, three years after discovering the flaw, U.S. Congressmen Peter DeFazio and Rick Larsen said in a press release on Friday. Boeing only accelerated this schedule after the Lion Air accident in Indonesia, they added. Boeing spokesman Gordon Johndroe said by email that a company safety review found the absence of the AOA Disagree alert did not adversely impact airplane safety or operation. “Based on the safety review, the update was scheduled for the MAX 10 entry into service in 2020,” Johndroe said. “We fell short in the implementation of the AoA Disagree alert and are taking steps to address these issues so they do not occur again.”

Read more …

Just don’t think they’re friends.

Russia-China: a Strategic Alliance for the 21st Century (SCF) /span>

Russian President Vladimir Putin welcomed China’s Xi Jinping to Moscow this week for a three-day state visit. It wasn’t just the personal warmth between the two leaders that was on display. They have met on nearly 30 occasions over the past six years. President Xi referred to Putin as his closest international ally and friend. More importantly, the two nations are solidifying a strategic alliance that could define the shape of geopolitics for the 21st Century. Putin and Xi, who also attended the annual St Petersburg International Economic Forum this week, signed a raft of bilateral commercial agreements which will propel Eurasian development and indeed global development.

Of particular significance is the continued drive by Moscow and Beijing to conduct international trade in national currencies, obviating the US dollar as a payment means. This is a crucial step in countering the desired “hegemonic control” of the global financial system by Washington. Time and again, Washington has abused its privileged position of printing or withholding dollars in order to further its own agenda of dominating other nations. That abuse has to stop, and it will stop as Russia and China pave the way to a new, fairer mechanism of international finance and trade. The vision of cooperation and partnership outlined by Putin and Xi is one based on mutual respect and peaceful prosperity.

Not just for those two nations but for all others who participate in the multilateral vision that they promulgate. In that way, the alliance being consolidated by Russia and China is one that offers renewed hope in a progressive and peaceful future for the planet. This positive vision is especially welcome at a time when the US under President Donald Trump is unleashing a barrage of tensions and potential conflicts from its bid to assert global dominance. The US is wielding sanctions and threats at numerous nations, including Russia and China, as well as even towards its own supposed allies in Europe, all in a desperate attempt to assert a hegemonic unipolar ambition.

Read more …

“twenty-two percent of the earth’s landmass was altered by humans just between 1992 and 2015..”

“More than half of the carbon exhaled into the atmosphere by the burning of fossil fuels has been emitted in the past three decades..”

Our Dying World (CP)

[..] “twenty-two percent of the earth’s landmass was altered by humans just between 1992 and 2015. Ninety-six percent of the world’s animals, by weight, are now humans and their livestock,” writes Wallace-Wells. He describes “the forces that unleashed climate change – namely ‘the unchecked wisdom of the market’” to conclude that “neoliberalism is the God that failed on climate change.” Indeed those who hope that salvation from the human-induced climate catastrophe will come from our neoliberal leaders are deluding themselves and wasting time.

For those who consider our ravaged climate the work of centuries, this book will be a shock. “More than half of the carbon exhaled into the atmosphere by the burning of fossil fuels has been emitted in the past three decades,” Wallace-Wells writes. The climate catastrophe is predominantely the creation of the World War II generation, the boomers and their children. And if we don’t wean ourselves quickly from oil and gas, from our meat-intensive diet, and if we don’t stop pouring concrete, large parts of the earth will become uninhabitable. In fact, the UN projects “200 million climate refugees by 2050.” At the high end, Wallace-Wells quotes “a billion or more vulnerable people with little choice but to fight or flee.” You think the Syrian war produced a refugee crisis for Europe (a war, by the way, largely fuelled by climate-change induced drought)? Or that Central American drought has propelled unsustainable numbers of migrants to the U. S.? You ain’t seen nothing yet.

If business continues as usual, by century’s end, we humans will have the distinction of having produced eight degrees of warming. (Currently we’ve produced one degree of warming.) People “at the equator and in the tropics would not be able to move around outside without dying…whole regions will become unlivable…as soon as the end of this century.” Train tracks will buckle and roads will melt. Another way of stating matters is “twenty-five Holocausts and the worst case outcome puts us on the brink of extinction.” And this disaster has just started.

Read more …

Because Greece needs money.

Why Replace Dolphins With Oil Drilling? (G.)

Before the giants of oil and gas joined the litany of threats facing Greek sperm whales, the plight of the world’s largest-toothed animal was little known. Like the Hellenic trench, which was discovered only two decades ago and is the habitat most associated with the species, the mammals were once the preserve of dedicated oceanographers. Now international eco-warriors, bent on stopping oil companies drilling for underwater reserves, are determined to put both the region and its unique species on the map. At stake is an unusually endangered zone. One of the world’s most significant marine mammal areas, it is home not only to the sperm whale, Greece’s chief predator, but fin whales, Cuvier’s beaked whales, fast-vanishing common dolphins, Mediterranean monk seals and loggerhead sea turtles.

All face mortal danger if, as planned, exploration for hydrocarbons is conducted off the country’s western coast. With worries mounting, WWF Greece and Greenpeace recently went to Athens’ highest administrative court, the council of state, in the hope of getting two oil company concessions annulled in waters off western and south-western Crete. The organisations cited inadequate environmental monitoring, both post- and pre-exploration. The move follows publication of an unprecedented declaration by 100 of the world’s leading scientists, conservation and ecological groups. The prospective drilling was described in a two-page statement as the death knell for iconic sea mammals already facing manmade threats ranging from ship strikes and plastic pollutants to radar noise from military naval exercises.

“Despite its global import, cetaceans in the Hellenic trench are already facing a series of direct and severe threats,” the signatories opined, calling on leftist prime minister Alexis Tsipras to cancel the offshore activity. “Oil and gas exploration and exploitation as an additional great threat … would become an important blow to their chances of survival.” Greece, they said, should instead follow “the bold political and investment decisions” of other EU member states by embracing renewable energy rather than hydrocarbons, one of the biggest drivers of climate change.

Read more …

But the domain name goes to Bezos.

The White Man Is Our Finishing Off Our Planet And We Want To Defend It (CD)

Satellite images reviewed by the Brazilian government show massive deforestation in the Amazon rainforest, a grim reminder of the devastation wrought by the country’s new president, Jair Bolsonaro. According to Reuters, 285 square miles of forest was cleared in May, the highest one month total in a decade. The information comes from Brazilian space research institute INPE’s DETER alert system. “If this upward curve continues, we could have a bad year for the Amazon forest,” said INPE satellite monitoring head Claudio Almeida. The Amazon deforestation is just part of a global problem, said youth activist Greta Thunberg. “Disastrous deforestation like this must come to an end,” Thunberg said. “And not just in the Amazon… We are literally sawing off the branch we all live on.”


[..] The Bolsonaro administration in January announced its plans to open the Amazon for resource exploitation—a move that came before the new presidency was even a month old. At the time, Bolsonaro’s chief of strategic affairs Maynard Santa Rosa referred to the Amazon as an “unproductive, desertlike” area that would benefit from development. In April, as Common Dreams reported, indigenous activists in Brazil sounded the alarm over the Bolsonaro government’s attack on the rainforest and made a non-violent demonstration at the country’s capital city of Brasilia. “The white man is our finishing off our planet and we want to defend it,” Alessandra Munduruku, a representative of the Munduruku tribe from the northern state of Pará, said during that protest.

Read more …

 

 

 

 

 

Apr 032018
 


Vincent van Gogh Field with Irises near Arles 1888

 

Stocks’ Second-Quarter Start Is the Worst Since the Great Depression (BBG)
Stocks Lose Critical Buyer at Worst Time (BBG)
Rising Rates Sounding Alarm Bells for Debt-Laden US Consumers (BBG)
China’s State-Owned Banks Told To Stop Local Government Loans (SCMP)
Chinese Families Are Racking Up Debt On An Unprecedented Scale (SCMP)
Young Lose Out In Britain’s Housing Wealth Boom (Times)
Swedes Turn Against Cashlessness (G.)
Bernie Sanders Agrees With Trump: Amazon Has Too Much Power (NW)
German Prosecutors Ask Court To Extradite Carles Puigdemont To Spain (G.)
The Peril of Psychographics (New Yorker)
Erdogan ‘Has Gone Completely Crazy’ – Greek Defense Minister (K.)
Greek Confiscations Target State Debtors With Small Arrears (K.)
‘Sentinel’ Dolphins Die in Brazil Bay. Some Worry a Way of Life Has, Too (NYT)
Underwater Melting Of Antarctic Ice Far Greater Than Thought (G.)

 

 

How’s that for a headline?

Stocks’ Second-Quarter Start Is the Worst Since the Great Depression (BBG)

If you feel like the second quarter began badly, you’d be right. U.S. stocks had their worst April start since 1929, according to data compiled by Bloomberg. The S&P 500 index slumped 2.2%, a rout exceeded only by its 2.5% decline 89 years ago, a prelude to the devastating crash later that year that brought on the Great Depression. (Back then, the index only comprised 90 stocks.) China’s retaliatory trade tariffs combined with President Donald Trump’s criticism of Amazon.com Inc. to send equities into a tailspin Monday.

Shares in the online retailer tumbled, encouraging a sell-off in consumer discretionary and technology stocks. The S&P 500 closed below its 200-day moving average – a key technical support – and volatility climbed. The stock slide also looked pretty bad when compared to the beginning of other quarters. Equities lost more than on any other quarterly first day since October 2011, when stocks plummeted 2.8%, Bloomberg data show.

Read more …

Is there a buyback blackout? Or, better question: should stocks depend on buybacks to such an extent?

Stocks Lose Critical Buyer at Worst Time (BBG)

The stock market’s missing a key participant as the second quarter kicks off with a rout. Corporate America is stuck on the sidelines as the S&P 500 Index plunges to its lowest level since early February. That’s to comply with regulations under which companies refrain from discretionary stock buybacks for about five weeks before reporting earnings through the 48 hours that follow. So, with first-quarter reporting season kicking into high gear in two weeks, companies must sit on their hands while the market fizzles. The timing of discretionary buybacks has gained traction in recent years with corporate appetite dwarfing all other investors as the biggest source of demand for U.S. stocks. Strategists such as Goldman Sachs’s David Kostin have pointed out that it’s no coincidence the late-January selloff occurred during a blackout period.

S&P 500 firms have bought back almost $4 trillion of their own shares since the bull market began nine years ago, data compiled by S&P Dow Jones Indices show. That demand helped mitigate damage in early February when stocks tumbled into the first correction in two years. Goldman Sachs’ buyback desk had its busiest week ever during the rout and companies were called “basically the only buyers.” Volume in S&P 500 stocks was about 7% above the 30-day average Monday. Not everyone agrees that the buyback blackout is partly to blame for Monday’s selloff. According to Marko Kolanovic, JPMorgan’s global head of quantitative and derivative strategy, the majority of buybacks are usually done through preset programs that are not subject to blackout.

Moreover, stocks typically go up more when repurchases are announced than when the transactions actually occur. “The whole story about blackout is misconception,” Kolanovic wrote in an email. So, what could be behind the selloff? Kolanovic’s team last week attributed the recent downturn to an “irrational response” to global trade tensions. The S&P 500 is trading at below-average valuations even as earnings growth is picking up, a sign that any weakness would be worth buying, the strategists wrote in a March 27 note.

Read more …

“..an estimated $350 trillion of contracts are based on Libor..”

Rising Rates Sounding Alarm Bells for Debt-Laden US Consumers (BBG)

A healthy economy can be a dangerous thing. Americans have a history of loading up on debt in good times, then paying dearly when the bills come due. Adding to the pain: A booming economy is often accompanied by rising interest rates, which make mortgages, credit cards and other debt much more expensive. As the U.S. Federal Reserve raises rates, there are signs that consumers could be putting themselves in peril. “When consumers are confident, or over-confident, is when they get into credit-card trouble,” said Todd Christensen at Debt Reduction Services in Boise, Idaho. The nonprofit credit counseling service has seen a noticeable uptick in people looking for help with their debt, he said.

Spending on U.S. general purpose credit cards surged 9.4% last year, to $3.5 trillion, according to industry newsletter Nilson Report. Card delinquencies are also rising. U.S. household debt climbed in the fourth quarter at the fastest pace since 2007, according to the Federal Reserve. “There are warning signs out there,” said Kevin Morrison, senior analyst at the Aite Group. Especially concerning is a surge in student and auto loans over the past decade, he said. Meanwhile, the Federal Reserve is steadily hiking rates, most recently on March 21 when the federal funds rate rose a quarter point to a target range of 1.5% to 1.75%.

Libor, a benchmark rate the world’s biggest banks charge each other, is also on the rise. The 3-month Libor reached 2.3% last week, the highest since November 2008. That could be a problem for companies, especially those with lower credit ratings, looking to refinance debt. Overall, an estimated $350 trillion of contracts are based on Libor, according to its administrator, ICE.

Read more …

So the shadow banks can take over?

China’s State-Owned Banks Told To Stop Local Government Loans (SCMP)

The central Chinese government has sent a blunt message intended to dissolve the marriage between banks and local governments, the nexus in China’s debt-fuelled growth model. In a directive full of “must nots”and “shalls” posted on its website last week, China’s Ministry of Finance, under the newly appointed minister Liu Kun, told state-owned financial institutions not to provide any funding to local governments, with the exception of buying government bonds. At the first meeting of the Central Economic and Financial Commission, the supreme economic decision making body headed by Xi Jinping on Monday, the Chinese president said local governments and state-owned enterprises must cut debt further.

China’s state-owned banks were told to check the registered capital of projects sponsored by local authorities, to appraise borrowers’ real repayment capabilities and not to accept local government’s guarantees for repayment or return, according to the ministry’s directive. Banks “must not provide any form of funding directly to local governmental departments or directly via local state-owned enterprises and institutions” and “must not increase new loans to local government financing vehicles irregularly”, according to the notice. It added that banks must not lend any money to local governments to be used as capital in projects, government investment funds or public-private partnership projects, it added.

Yin Zhongqing, deputy director of the financial and economic affairs committee at the National People’s Congress, told the South China Morning Post last month that at least 20 trillion yuan of “hidden debt” had been accumulated in the past three years. The national institution of finance and development under the Chinese Academy of Social Sciences last week estimated the total liabilities of local government financing vehicles was 30 trillion yuan, while another 10 trillion yuan of debt could be buried in public-private partnerships.

Read more …

“A man with a 50,000 yuan debt is responsible; 200,000 yuan of debt is financially savvy; 1 million yuan of debt is a homeowner; 10 million yuan of debt is classy; and a 1 billion yuan debt is chairman of a listed company … if you don’t have any debt, you must be a total loser.”

Chinese Families Are Racking Up Debt On An Unprecedented Scale (SCMP)

Chinese families with their long tradition of saving money are now accumulating debt at a rate never been seen before, according to data compiled by a state-backed think tank in Beijing. But the National Institution for Finance and Development also said mounting debt was not a concern because Chinese households still had far more savings than debts. The country’s household leverage ratio – or the ratio between debt incurred by families and GDP – surged to 49% at the end of last year from 17.9% at the end of 2008, going up about 3.5 percentage points annually, the think tank said in a report released on Thursday.

So in the period from 1993, when the data became available, to 2008, the household debt ratio went from 8.3% to 17.9%, with an annual rise of 0.65 percentage points. But in 2016 and 2017, that annual increase accelerated to about 4.9 percentage points, the think tank said. The rapid accumulation of household debt was the biggest factor behind the rise in China’s overall leverage last year, as the corporate sector’s debt ratio fell and local government borrowing was reined in, at least on the surface, it said.

Liu Lei, a researcher with the think tank, said at a briefing on Thursday that real household debt could be “8 percentage points” higher if special housing funds, peer-to-peer lending programmes and private micro loans were factored in. In August, Shanghai-based brokerage Haitong Securities said in a report that while China’s actual household debt ratio was not high compared to many developed countries such as the US and UK, its rate of increase was dangerous. “It took 40 years for the household debt ratio in the US to rise from a level of 20% to about 50%, but it took only less than 10 years in China,” according to the Haitong economists led by Jiang Chao.

[..] China’s excessive money printing in the last decade and skyrocketing property prices have benefited those who maximised their leverage to buy real estate, while the country’s savers bore the brunt of monetary easing, leading to a dramatic shift in attitude on saving versus borrowing. That change in attitude can be seen in a popular saying widely circulated on Chinese social media in recent years: “A man with a 50,000 yuan debt is responsible; 200,000 yuan of debt is financially savvy; 1 million yuan of debt is a homeowner; 10 million yuan of debt is classy; and a 1 billion yuan debt is chairman of a listed company … if you don’t have any debt, you must be a total loser.”

Read more …

There’s so much wrong here, where to begin? Get out while you can.

Young Lose Out In Britain’s Housing Wealth Boom (Times)

Three quarters of housing wealth in Britain is held by the over-50s, according to research revealing the generational divide in the property market. Such homeowners hold £2.8 trillion of equity. The over-65s own 43 per cent of housing wealth, £1.6 trillion, the study by the estate agent Savills found. Lawrence Bowles, a research analyst at the company, said: “The extent to which wealth is concentrated in older hands is something we have not seen in a long time.” Owners have piled up equity by living longer, paying off their mortgages and watching as prices grew steadily in the final decades of the last century. “It is looking likely that we will see more people downsizing in order to free up that equity,” Mr Bowles said.

At the other end of the spectrum, homeowners under 35 hold just £221 billion of equity but owe £223 billion in mortgage debt. This age group holds £6 of equity in every £100 compared with £75 held by their parents. First-time buyers face prices that are 5.2 times higher than average incomes, while in London prices are about 14 times higher than average earnings. In most regions, it takes about eight years for the typical first-time buyer to save a deposit. This rises to nine years in the southeast and to nearly ten in London, where the average 20 per cent deposit is now above £80,000.

Read more …

“If Putin invades…”

Swedes Turn Against Cashlessness (G.)

It is hard to argue that you cannot trust the government when the government isn’t really all that bad. This is the problem facing the small but growing number of Swedes anxious about their country’s rush to embrace a cash-free society. Most consumers already say they manage without cash altogether, while shops and cafes increasingly refuse to accept notes and coins because of the costs and risk involved. Until recently, however, it has been hard for critics to find a hearing. “The Swedish government is a rather nice one, we have been lucky enough to have mostly nice ones for the past 100 years,” says Christian Engström, a former MEP for the Pirate Party and an early opponent of the cashless economy.

“In other countries there is much more awareness that you cannot trust the government all the time. In Sweden it is hard to get people mobilised.” There are signs this might be changing. In February, the head of Sweden’s central bank warned that Sweden could soon face a situation where all payments were controlled by private sector banks. The Riksbank governor, Stefan Ingves, called for new legislation to secure public control over the payments system, arguing that being able to make and receive payments is a “collective good” like defence, the courts, or public statistics. “Most citizens would feel uncomfortable to surrender these social functions to private companies,” he said. “It should be obvious that Sweden’s preparedness would be weakened if, in a serious crisis or war, we had not decided in advance how households and companies would pay for fuel, supplies and other necessities.”

The central bank governor’s remarks are helping to bring other concerns about a cash-free society into the mainstream, says Björn Eriksson, 72, a former national police commissioner and the leader of a group called the Cash Rebellion, or Kontantupproret. Until now, Kontantupproret has been dismissed as the voice of the elderly and the technologically backward, Eriksson says. “When you have a fully digital system you have no weapon to defend yourself if someone turns it off,” he says. “If Putin invades Gotland [Sweden’s largest island] it will be enough for him to turn off the payments system. No other country would even think about taking these sorts of risks, they would demand some sort of analogue system.”

In this sense, Sweden is far from its famous concept of lagom – “just the right amount” – but instead is “100% extreme”, Eriksson says, by investing so much faith in the banks. “This is a political question. We are leaving these decisions to four major banks who form a monopoly in Sweden.”

Read more …

A few days ago Elizabeth Warren agreed with Trump on China, now Sanders agrees about Amazon. What’s happening to the world?

Bernie Sanders Agrees With Trump: Amazon Has Too Much Power (NW)

Independent Vermont senator and 2016 presidential hopeful Bernie Sanders echoed President Donald Trump in expressing concern about retail giant Amazon. Sanders said that he felt Amazon had gotten too big on CNN’s “State of the Union” Sunday, and added that Amazon’s place in society should be examined. “And I think this is, look, this is an issue that has got to be looked at. What we are seeing all over this country is the decline in retail. We’re seeing this incredibly large company getting involved in almost every area of commerce. And I think it is important to take a look at the power and influence that Amazon has,” said Sanders. The senator’s comments came on the heels of a number of tweets from Trump, who has long criticized the online retailer.

Read more …

WIll Europe start chasing elected politicians?

German Prosecutors Ask Court To Extradite Carles Puigdemont To Spain (G.)

German prosecutors have asked a court to permit the extradition of former Catalan separatist leader Carles Puigdemont to Spain. Prosecutors in the northern town of Schleswig said on Tuesday they have submitted a request to the regional court following “intensive examination” of the European arrest warrant issued by Spain. Puigdemont has been detained in Germany since 25 March. Spain accuses the 55-year-old of rebellion in organising an unauthorised referendum. The Schleswig court is likely to take several days to decide whether to extradite Puigdemont. His lawyers have urged the German government to intervene in the case, citing the “political dimension.”

Read more …

Just stop collecting the data. Problem solved.

The Peril of Psychographics (New Yorker)

In September, 2016, Alexander Nix, the C.E.O. of Cambridge Analytica, the data and messaging company that was working at the time with Donald Trump’s supposedly flagging Presidential campaign, explained his firm’s work like this: “If you know the personality of the people you’re targeting, you can nuance your messaging to resonate more effectively with those key audience groups.” The fancy term for this is psychographic targeting. A few weeks later, Trump won the Presidency, against all odds and predictions, sending political operatives and journalists scrambling for explanations. “There was a huge demand internally for people to see how we did it,” Brittany Kaiser, Cambridge Analytica’s former business-development director, told the Guardian last Friday. “Everyone wanted to know: past clients, future clients.”

Whether Cambridge Analytica’s targeting work actually swayed the outcome of the election has been a subject of debate since then—because the firm’s record is spotty, psychographic targeting in political campaigns is a relatively new concept, and it has not yet been definitely shown that C.A. successfully used these methods on behalf of Trump’s campaign. Christopher Wylie, the former C.A. employee who recently came forward to detail how the company improperly acquired personal data from fifty million Facebook users, has said that the company used that data to create a “psychological warfare mindfuck tool.”

But Aleksandr Kogan, the Cambridge University researcher who provided the company with the Facebook data, has described it as “not that accurate at the individual level.” Kogan’s conclusion tracks with research that has been done by the U.K.-based Online Privacy Foundation, whose research director, Chris Sumner, recently told me that psychographics are much more accurate for groups rather than individual people.

Read more …

The US and France are turning their backs on Turkey. Feel emboldened by that?

Erdogan ‘Has Gone Completely Crazy’ – Greek Defense Minister (K.)

Raising the incendiary rhetoric another notch, Defense Minister Panos Kammenos lashed out against Recep Tayyip Erdogan Monday, saying that the Turkish president “has gone completely crazy.” Speaking to journalists outside the Parliament in Athens about the fate of the two Greek soldiers held in Turkey and Ankara’s provocations in the Aegean, Kammenos said there are no lines of communication with Erdogan. “We’re talking about Erdogan, who goes out and publicly insults the US and [Israeli Prime Minister Benjamin] Netanyahu,” he said, adding that “Turkey has no courts while its justice system works under the orders of the sultan [Erdogan].”

The two soldiers, he said, could, under these circumstances, be held there for 15 years. “You cannot answer to a madman,” he said, referring to the Turkish leader. The two soldiers have been held for a month in Turkey without any charges being brought against them yet. Kammenos, who is also the leader of the right-wing junior coalition partner, Independent Greeks (ANEL), said Turkish authorities have so far found nothing to prosecute the two soldiers but warned of a worst-case scenario reminiscent of the film “Midnight Express,” based on the travails of an American who served time in a Turkish prison in the 1970s.

“If you watch ‘Midnight Express,’ you will see that they kept on making up charges against him,” he said, adding that “nothing works democratically there [Turkey].” He also expressed concern that an incident could occur in the Aegean. “They may want to provoke this but you must know that the Turkish military is in a dire state at this moment,” he said, adding that, for its part, Greece “is ready.” He clarified that Greece will not take the bait but noted that if Turkey violates Greek national sovereignty, then “we will respond as we should.”

Read more …

On the poorest in Greece: “..the state conducted 1.72 million confiscations of salaries, pensions and rent payments last year..”

See, the poor owe €1.2 billion. 40,000 rich individuals and companies owe €90 billion.

Greek Confiscations Target State Debtors With Small Arrears (K.)

Over 3.3 million taxpayers owe the tax authorities amounts of less than 3,000 euros each. According to figures published by the Independent Authority for Public Revenue, the state conducted 1.72 million confiscations of salaries, pensions and rent payments last year, mostly concerning small debtors. Debtors owing up to 3,000 euros account for 80.5% of all debtors, and they owe 1.2 billion euros. These debts were run up in recent years and mainly stem from failure to pay income tax and the Single Property Tax (ENFIA), whereas bigger debts to the tax authorities concern 40,000 individuals and companies and add up to 90 billion euros, originating from fines and activated guarantees. It is quite impressive that the number of state debtors has increased by some 3 million in the years of the financial crisis, climbing from 1 million in 2010 to 4.1 million today.

Read more …

“Nostalgia aside..” Nostalgia? What? Nostalgic for life? When everything’s dead, we go and be nostalgic?

‘Sentinel’ Dolphins Die in Brazil Bay. Some Worry a Way of Life Has, Too (NYT)

Something ominous was happening in the turquoise waters of Sepetiba Bay, a booming port outside Rio de Janeiro. Beginning late last year, fishermen were coming across the scarred and emaciated carcasses of dolphins, sometimes five a day, bobbing up to the surface. Since then, scientists there have discovered more than 200 dead Guiana dolphins, or Sotalia guianensis, a quarter of what was the world’s largest concentration of the species. The deaths, caused by respiratory and nervous system failures linked to a virus, have subsided, but scientists are working to unravel the mystery behind them. How, they ask, did a virus that might ordinarily have claimed a handful of dolphins end up killing scores of them?

And does part of the answer, scientists and local residents ask, lie in the bay itself, at once a testament to Brazil’s economic power and a portent of environmental risk. The dolphins are “sentinels,” said Mariana Alonso, a biologist at the Biophysics Institute at the Federal University of Rio de Janeiro, one of a number groups working to understand the epidemic. “When something is wrong with them, that indicates the whole ecosystem is fractured.” [..] Sepetiba Bay, 40 miles west of downtown Rio, became one of the principal gateways for Brazilian exports over the past generation. In 2017, 39 million tons of iron ore and other commodities shipped from there.

The wooden fishing boats that crisscross the bay now weave around massive merchant ships loaded with iron and steel. Though people still swim in its waters, four ports and a constellation of chemical, steel and manufacturing plants have risen on its shores. One of world’s most prominent iron ore producers, Vale, occupies a new terminal in an old fishing spot on nearby Guaiba Island. “When I was a child, buffalo roamed the farms around my village, and we had apples and coconuts,” said Cleyton Ferreira Figueiredo, 28, a convenience store cashier who, nostalgia aside, also sees advantages in the development. “Now everything is more urban, with schools and facilities. There are more jobs, and it takes me 15 minutes to get home when I finish.”

Read more …

A little scary.

Underwater Melting Of Antarctic Ice Far Greater Than Thought (G.)

Hidden underwater melt-off in the Antarctic is doubling every 20 years and could soon overtake Greenland to become the biggest source of sea-level rise, according to the first complete underwater map of the world’s largest body of ice. Warming waters have caused the base of ice near the ocean floor around the south pole to shrink by 1,463 square kilometres – an area the size of Greater London – between 2010 and 2016, according to . The research by the at the University of Leeds suggests climate change is affecting the Antarctic more than previously believed and is likely to prompt global projections of sea-level rise to be revised upward.

Until recently, the Antarctic was seen as relatively stable. Viewed from above, the extent of land and sea ice in the far south has not changed as dramatically as in the far north. But the new study found even a small increase in temperature has been enough to cause a loss of five metres every year from the bottom edge of the ice sheet, some of which is more than 2km underwater. “What’s happening is that Antarctica is being melted away at its base. We can’t see it, because it’s happening below the sea surface,” said Professor Andrew Shepherd, one of the authors of the paper. “The changes mean that very soon the sea-level contribution from Antarctica could outstrip that from Greenland.”

The study measures the Antarctic’s “grounding line” – the bottommost edge of the ice sheet across 16,000km of coastline. This is done by using elevation data from the European Space Agency’s CryoSat-2 and applying Archimedes’s principle of buoyancy, which relates the thickness of floating ice to the height of its surface.

Read more …

Mar 312018
 
 March 31, 2018  Posted by at 10:08 am Finance Tagged with: , , , , , , , , , , , ,  


Giotto Lamentation 1306

 

What Could Dethrone the Dollar as Top Reserve Currency? (WS)
How Many Trillions In Debt Are Linked To Soaring LIBOR? (ZH)
Bitcoin Is On Track For Its Worst First Quarter Ever (CNBC)
Tesla’s ‘Day Of Reckoning’ Is Near (CNBC)
ECB To Buy More German Bank Bonds To Keep Stimulus Flowing (R.)
UK Must Bring Home ‘Just Over 50’ Of Its Diplomats From Russia (R.)
Jammers Stop Assange From Using Internet (PA)
China’s Social Credit System Punishes Untrustworthy Citizens (ABC.au)
China ‘Environment Census’ Reveals 50% Rise In Pollution Sources (G.)
Overfishing Turns Mediterranean Dolphins Into Thieves (Ind.)

 

 

Again: look at dollar-denominated debt in the world. And then check interest rates. The dollar will be in great demand.

What Could Dethrone the Dollar as Top Reserve Currency? (WS)

What will finally pull the rug out from under the dollar’s hegemony? The euro? The Chinese yuan? Cryptocurrencies? The Greek drachma? Whatever it will be, and however fervently the death-of-the-dollar folks might wish for it, it’s not happening at the moment, according to the most recent data. The IMF just released its report, Currency Composition of Official Foreign Exchange Reserves (COFER) for the fourth quarter 2017. It should be said that the IMF is very economical with what it discloses. The COFER data for the individual countries – the total level of their reserve currencies and what currencies they hold – is “strictly confidential.” But we get to look at the global allocation by currency.

In Q4 2017, total global foreign exchange reserves, including all currencies, rose 6.6% year-over-year, or by $709 billion, to $11.42 trillion, right in the range of the past three years (from $10.7 trillion in Q4 2016 to $11.8 trillion in Q3, 2014). For reporting purposes, the IMF converts all currency balances into dollars. Dollar-denominated assets among foreign exchange reserves rose 14% year-over-year in Q4 to $6.28 trillion, and are up 42% from Q4 2014. There is no indication that global central banks have lost interest in the dollar; on the contrary:

Over the decades, there have been some efforts to topple the dollar’s hegemony as a global reserve currency, which it has maintained since World War II. The creation of the euro was the most successful such effort. Back in the day, the euro was supposed to reach “parity” with the dollar on the hegemony scale. And it edged up for a while until the euro debt crisis derailed those dreams. And now there’s the ballyhooed Chinese yuan. Effective October 1, 2016, the IMF added it to its currency basket, the Special Drawing Rights (SDR). This anointed the yuan as a global reserve currency. But not all central banks disclose to the IMF how their foreign exchange reserves are allocated. In Q4, the allocation of 12.3% of the reserves hadn’t been disclosed.

These “unallocated reserves” have been plunging. Back in Q4 2014, they still accounted for 41% of total reserves. They’re plunging because more central banks report to the IMF their allocation of foreign exchange reserves, and the COFER data is getting more detailed. So among the 87.7% of the “allocated” reserve currencies in Q4 2017, the pie was split up this way, with changes since 2014: Disappointingly for many folks, the Chinese yuan – the thin red sliver in the pie chart above — didn’t exactly soar since its inclusion in the SDR basket. Its share ticked up by a minuscule amount to a minuscule share of 1.2% of allocated foreign exchange reserves in Q4. In other words, central banks seem to lack a certain eagerness, if you will, to hold yuan-denominated assets.

Read more …

Nobody has a clue why LIBOR rises, including whoever wrote this. A wild guess: $200 trillion?! It’s that dollar-denominated debt problem again.

How Many Trillions In Debt Are Linked To Soaring LIBOR? (ZH)

[..] we have commented extensively on what may (or may not) be behind the Libor blow out: if as many claim, the move is a benign technicality and a temporary imbalance in money market supply and demand, largely a function of tax reform (including the Base Erosion Anti-Abuse Tax) or alternatively of the $300BN surge in T-Bill supply in the past month, the Libor move should start fading. If it doesn’t, it will be time to get nervous. But no matter what the reason is behind the Libor move, the reality is that financial conditions are far tighter as a result of the sharp move higher in short-term rates in general, and Libor in particular, which for at least a few more years, remains the benchmark rate referenced by trillions in fixed income instruments.

Which brings us to a logical follow up question: ignoring the reasons behind the move, how does a higher Libor rate spread throughout the financial system, and related to that, how much notional debt is at risk of paying far higher interest expense, if only temporarily, resulting in even tighter financial conditions. For the answer, we look at the various ways that Libor, and short-term rates in general “channel” into the economy. Here, as JPMorgan explains, the key driver is and always has been monetary policy, which controls short-term rates, which affect the economy via various channels and pathways.

Read more …

45% feels like a lot.

Bitcoin Is On Track For Its Worst First Quarter Ever (CNBC)

Bitcoin is having a terrible first quarter, in fact the worst its ever seen. The price of the cryptocurrency has fallen from $13,412.44 on January 1 to $7,266.07 on March 30, marking a more than 45% decline, according to data from CoinDesk, a site which tracks the price of different digital coins. The quarter ends on Saturday. So far this quarter, $114.9 billion of market capitalization or value has been wiped off of bitcoin. The price decline this quarter is the biggest first quarter decline in bitcoin’s history. The previous biggest decline was a near 38% fall in the price in the first quarter of 2014, according to data from CoinDesk. It tracks the price of bitcoin back to the middle of 2010.

CNBC looked at bitcoin’s price performance in the first quarters of each year beginning in 2011. Bitcoin has recorded a decline in 5 of the 8 first quarters tracked, which includes the current 2018 Q1. The biggest price rise was a 599% surge in the price of bitcoin in the first quarter of 2013. Bitcoin saw a huge run up in price in 2017 and hit a record high above $19,000 towards the end of last year. But it has faced tougher regulatory scrutiny in 2018 and some of the air has come out of the market. At a G-20 meeting this month, Argentina’s central bank governor outlined a summer deadline for members to have “specific recommendations on what to do” and said task forces are working to submit proposals by July. Italy’s central bank leader told reporters after the meeting in Buenos Aires, Argentina, that cryptocurrencies pose risks but should not be banned, according to Reuters.

Read more …

What’s the recall of 123,000 cars going to cost?

Tesla’s ‘Day Of Reckoning’ Is Near (CNBC)

Tesla’s big stock drop this month will have negative implications for its ability to raise critically-needed funds, according to Wall Street analysts. The company’s shares declined 22% in March on concerns over a fatal car crash in California last week and worries over its Model 3 production rate. Tesla’s 5.3% bond, issued last August and maturing in 2025, also fell 4% to 87.25 cents Wednesday with a yield of 7.6%, according to FactSet. The bond’s price declined 8% this month. Morgan Stanley on Wednesday warned Tesla shareholders the stock’s fall could be a “self-fulfilling” prophecy for further declines.

“A lower share price begets a lower share price … For a company widely expected to continue to fund its strategy through external capital raises, a fall in the share price can take on a self-fulfilling nature that further exacerbates the volatility of the share price,” analyst Adam Jonas wrote. Jonas said the company needs to accelerate its rate of Model 3 production if it wants to raise funds at an attractive price for the company. “The precise timing of when Tesla can achieve a 2,500/week and then a 5,000/week production run-rate for its mass market sedan can make the difference between whether Tesla is potentially raising capital from a position of weakness at a price near our $175 bear case or whether it can access capital from a position of strength with a stock price near our $561 bull case,” he wrote.

Another financial firm is already pessimistic over Telsa’s Model 3 manufacturing capability. Moody’s downgraded Tesla’s credit ratings after the close Tuesday and changed the outlook to negative from stable, citing the “significant shortfall” in the Model 3 production rate and its tight financial situation. Tesla had $3.4 billion in cash or cash equivalents at year end 2017. The company lost nearly $2 billion last year and burned about $3.4 billion in cash after capital investments. Given the company’s cash burn rate and how it has $230 million of debt due in Nov. 2018 and another $920 million in Mar. 2019, Moody’s believes the company has to raise new capital soon.

Read more …

This is a week old, but we can’t repeat often enough how insane this is. Germany’s economy is supposedly soaring, but Draghi keeps saving its banks. “To boost inflation..” Bigger nonsense was never heard. Those banks are simply not doing well. But even then, let Germany solve the mess.

ECB To Buy More German Bank Bonds To Keep Stimulus Flowing (R.)

The European Central Bank will start buying bonds from a further seven state-owned German banks under its stimulus program, it said on Thursday, in a bid to avoid running out of debt to buy after three years of massive purchases. The seven regional banks, which include the Investitionsbank Berlin and Bavaria’s LFA Förderbank Bayern, join a small group of German development lenders whose debt the ECB has already been buying as part of its efforts to boost inflation. The move slightly enlarges the pool of German debt which the ECB can tap as part of its 2.55 trillion euro ($3.14 trillion) quantitative easing scheme, thereby pushing back a looming cap on owning more than a third of any one country’s public debt.

With euro zone inflation now comfortably above 1%, the ECB is widely expected to wind down its bond purchases this year and even start raising interest rates towards the middle of 2019. With Germany running a fiscal surplus, however, finding enough German bonds to buy has already become harder for the ECB, which has reduced its purchases of debt from Europe’s largest economy more than for other large countries in recent months. The ECB has set out to buy government bonds in proportion to the amount of capital that each country has paid into the central bank, which in turn depends on the size of its economy. Deviations from this so called “capital key”, however, have been substantial, with France, Italy and Spain enjoying oversized purchases while smaller countries such as Estonia and Portugal have fallen behind.

Read more …

And the whole time I’m thinking: why do they have so many people out there? What do they do all day long?

UK Must Bring Home ‘Just Over 50’ Of Its Diplomats From Russia (R.)

Russia has told Britain it must send home “just over 50” more of its diplomats in a worsening standoff with the West over the poisoning of a former Russian spy and his daughter in Britain. Russia has already retaliated in kind against Britain and ejected 23 British diplomats over the poisoning of former Russian spy Sergei Skripal and his daughter Yulia. London says Moscow stood behind the attack, something Russia denies. British Ambassador Laurie Bristow was summoned again on Friday and told London had one month to cut its diplomatic contingent in Russia to the same size as the Russian mission in Britain.

On Saturday, Foreign Ministry Spokeswoman Maria Zakharova told Reuters that meant Britain would have to cut “a little over 50” of its diplomats in Russia. “We asked for parity. The Brits have 50 diplomats more than the Russians,” said Zakharova. When asked if that meant London would have to bring home exactly 50 diplomats, she said: “A little over 50.”

Read more …

It doesn’t feel as if demanding internet access for Julian quite cuts it. He could be in much bigger trouble.

Jammers Stop Assange From Using Internet (PA)

Electronic jammers have been placed inside the Ecuadorian embassy in London to prevent WikiLeaks founder Julian Assange having access to the internet or social media, sources say. The Ecuadorian government took the measure on Tuesday evening, stopping Assange from tweeting, using the internet or phone. He has also been refused any visitors to the embassy, where he has been living since June 2012, believing he will be extradited to the US for questioning over the activities of WikiLeaks if he leaves. The measures follow the publication of an article in the Ecuadorian press concerning Assange’s tweets about the arrest of former Catalan president Carles Puigdemont in Germany earlier this week.

In a phone call to Assange’s lawyer on Tuesday, an adviser to Ecuadorian Foreign Minister Maria Fernanda Espinosa said the WikiLeaks founder must stop tweeting about the Catalan issue. He was also asked to erase a tweet which said: “In 1940 the elected president of Catalonia, Lluis Companys, was captured by the Gestapo, at the request of Spain, delivered to them and executed. Today, German police have arrested the elected president of Catalonia, Carles Puigdemont, at the request of Spain, to be extradited.” Assange did not erase the tweet. His lawyer was told that a decision had been taken to isolate Assange by preventing him from communicating with the outside world and that this was “by order of the president”, say sources.

The serving Ecuadorian ambassador to Washington DC Francisco Carrion tweeted on Thursday: “The decision of the government of Ecuador to prevent Assange from tweeting is correct.” The Ecuador government said in a statement: “The government of Ecuador has suspended the systems that allow Julian Assange to communicate to the outside of the Ecuador embassy in London. “The measure was adopted due to Assange not complying with a written promise which he made with the government in late 2017, by which he was obliged not to send messages which entailed interference in relation to other states.” WikiLeaks sources said there was no such agreement.

Read more …

Who needs Orwell? Or Facebook, for that matter?! Only difference is China does it openly.

China’s Social Credit System Punishes Untrustworthy Citizens (ABC.au)

Chinese authorities claim they have banned more than 7 million people deemed “untrustworthy” from boarding flights, and nearly 3 million others from riding on high-speed trains, according to a report by the country’s National Development and Reform Commission. The announcements offer a glimpse into Beijing’s ambitious attempt to create a Social Credit System (SCS) by 2020 — that is, a proposed national system designed to value and engineer better individual behaviour by establishing the scores of 1.4 billion citizens and “awarding the trustworthy” and “punishing the disobedient”.

Liu Hu, a 43-year-old journalist who lives in China’s Chongqing municipality, told the ABC he was “dumbstruck” to find himself caught up in the system and banned by airlines when he tried to book a flight last year. Mr Liu is on a “dishonest personnel” list — a pilot scheme of the SCS — because he lost a defamation lawsuit in 2015 and was asked by the court to pay a fine that is still outstanding according to the court record. “No one ever notified me,” Mr Liu, who claims he paid the fine, said. Like the other 7 million citizens deemed to be “dishonest” and mired in the blacklist, Mr Liu has also been banned from staying in a star-rated hotel, buying a house, taking a holiday, and even sending his nine-year-old daughter to a private school. And just last Monday, Chinese authorities announced they would also seek to freeze the assets of those deemed “dishonest people”.

As the national system is still being fully realised, dozens of pilot social credit systems have already been tested by local governments at provincial and city levels. For example, Suzhou, a city in eastern China, uses a point system where every resident is rated on a scale between 0 and 200 points — every resident starts from the baseline of 100 points. One can earn bonus points for benevolent acts and lose points for disobeying laws, regulations, and social norms. According to a 2016 report by local police, the top-rated Suzhou citizen had 134 points for donating more than one litre of blood and doing more than 500 hours of volunteer work. The city said the next step was to use the credit system to punish people for transgressions such as dodging transport fares, cheating in video games, and restaurant no-shows.

Read more …

Tried to make sense of this, several times. Still sounds entirely hollow.

China ‘Environment Census’ Reveals 50% Rise In Pollution Sources (G.)

China’s environment ministry has said the number of sources of pollution in the country has increased by more than half in less than a decade. Releasing preliminary results of an ongoing “environmental census”, China’s ministry of ecology and environment said the number of sources of pollution in the country stands at about 9m, compared to 5.9m in its first census, in 2010. “The objectives and scope of the second census is different from those of the first one,” said Hong Yaxiong, head of the pollution survey at the ministry, Thursday. “But overall, there are more pollution sources.” The census did not say whether pollution had increased but declines in airborne pollution in major cities have been recorded in other studies.

Hong said factories flouting emissions standards were the main problem. The ministry found 7.4m sources of industrial pollution, compared to a million in rural areas and 500,000 in urban locations. Five years ago, China declared a “war against pollution.” Since then, new coal plants have been barred from opening and existing ones have been ordered to cut emissions. Major cities restrict the number of cars allowed on the roads. This past winter, residents in Beijing were left without heat after their coal boilers were removed. As part of the campaign, officials this month expanded the powers of the country’s 10-year-old ministry of environmental protection to include water management, emissions reductions, agricultural pollution, and other duties previously managed by half a dozen other ministries.

Read more …

No, it’s not just the birds and the bees. Fish are gone too.

Overfishing Turns Mediterranean Dolphins Into Thieves (Ind.)

Dolphins short on prey are resorting to underhand tactics to find a meal – tearing into nets to access the fish inside. Researchers studying interactions between dolphins and fishermen in northern Cyprus found nets were six times more prone to damage when dolphins were in the vicinity. They concluded that the marauding marine mammals were therefore the most likely culprits. “It seems that some dolphins may be actively seeking nets as a way to get food,” said Dr Robin Snape, an ecologist at the University of Exeter, who led the study. Net damage is irritating for the fishermen themselves, and can cost individuals thousands of euros every year. This is particularly problematic as most operations in the region are small scale.

However, the scientists suggested the fishermen must take some share of the blame, as overfishing in the region is a likely driver for the dolphins’ unusual behaviour. Dr Snape highlighted a “vicious cycle” that is “probably driven by falling fish stocks, which also result in low catches – meaning more nets are needed and higher costs for fishers”. “Effective management of fish stocks is urgently needed to address the overexploitation that is causing this vicious cycle,” he said.

Read more …

Jan 132018
 
 January 13, 2018  Posted by at 10:55 am Finance Tagged with: , , , , , , , , , , ,  


Rembrandt van Rijn The flight into Egypt – a night piece 1651

 

The Household Debt Ticking Time Bomb (IRD)
The Stock Market Never Goes Down Anymore (BBG)
Fed Pays Banks $30 Billion on “Excess Reserves” for 2017 (WS)
Fed’s Rosengren Faults Inflation Target, Warns Of Harm (R.)
Goldman Warns Treasury Issuance To More Than Double In 2019 (ZH)
The Company That Runs Britain Is Near To Collapse. Watch And Worry (G.)
Spanish and Dutch Agree to Seek Soft Brexit Deal (BBG)
Economics Is Too Important To Be Left To The -Academic- Economists (Steve Keen)
Who Moved My Xanax? (Jim Kunstler)
Dolphins Show Self-Recognition Earlier Than Human Children (NYT)
The Ocean Is Suffocating—But Not For The First Time (Atlantic)

 

 

It’s your borrowing that will do you in.

The Household Debt Ticking Time Bomb (IRD)

I fully expect the Government’s Census Bureau to post a mind-blowing headline retail sales number for December. Hyperbolic headline economic statistics derived from mysterious “seasonal adjustments” based on questionable sampling methodology is part of the official propaganda policy mandated by the Executive Branch of Government. But I also believe that retail sales were likely more robust than saner minds were expecting because it appears that households have become accustomed to the easy credit provided by the banking system to make ends meet. Borrow money to “spend and pretend.” The Fed reported that consumer credit hit an all-time record in November. The primary driver was credit card debt, which hit a new all-time high (previous record was in 2008). Credit debt also increased a record monthly amount in November.

“Speaking of signposts, households have grown increasingly comfortable with leverage to maintain their living standards, which of course economists cheer. That’s worked for 24 straight months as credit card spending growth has outrun that of income growth” – Danielle DiMartino Booth, who was an advisor for nine years to former Dallas Fed President, Richard Fisher. The graph above shows the year over year monthly percentage change in revolving credit – which is primarily credit card debt – and real disposable personal income. Real disposable personal income is after-tax income adjusted for CPI inflation. As you can see, the growth in the use of credit card debt has indeed outstripped the growth in after-tax household income. The credit metric above would not include home equity lines of credit.

At some point, assuming the relationship between the two variables above continues along the same trend, and we have no reason to believe that it won’t, credit card debt will collide with reality and there will be a horrifying number of credit card defaults. Worse than 2008-2010. [The next] chart shows household debt service payments as a percentage of after-tax income: “Debt service” is interest + principal payments. With auto loan and credit card debt, most of the debt service payment is interest. This metric climbed to a 5-year high during a period of time when interest rates hit all-time record lows. Currently the average household is unable to make more than the minimum principle payment per the information conveyed by the first graphic. What happens to the debt service:income ratio metric as households continue to pile on debt to make ends meet while interest rates rise?

Household debt service includes mortgage debt service payments. Household mortgage debt outstanding is not quite at the all-time high recorded in Q2 2008. The current number from the Fed is through Q3 2017. At the current quarterly rate of increase, an new all-time high in mortgage debt outstanding should occur during Q2 2018. However, it should be noted that the number of homes sold per quarter during this current housing bubble is below the number of units sold per quarter at the peak of the previous housing bubble. This means that the average size of mortgage per home sold is higher now than during the earlier housing bubble. This is a fact that overlooked by every housing and credit market analyst, either intentionally or from ignorance (I’ll let you decide).

Read more …

Until it does.

The Stock Market Never Goes Down Anymore (BBG)

The New Year’s rally has pushed the S&P 500 Index to its best start since the administration of George W. Bush. Now it’s bumping against speed barriers that marked the upper limits of bull markets for decades. Up eight times in the first nine days of 2018, the S&P 500 has broken away from a trend line, its 200-day moving average, with a velocity unseen since 2013, the best year for equities in a generation. The benchmark now sits more than 11% above the level, putting it in the 92nd percentile of momentum, data going back 20 years show. Something has changed in equities. If 2017 was a slow but steady slog, 2018 has been off to the races, with shares rising at four times last year’s daily rate on the back of Donald Trump’s tax package and gathering signs of economic strength.

Forty seven companies in the S&P 500 are already up at least 10% this year, compared with just two down as much. “Even if you were the bullest of the bulls, this crazy rally start to the year took you off guard,” said Michael Antonelli at Robert W. Baird & Co. “We’ve completely run out of ways to describe what’s happening. We get asked a lot, are you seeing anything different that could explain the rally? The answer is no.” Fear of missing out is rampant not just on Wall Street but worldwide. Globally, stock funds saw a $24 billion inflow in the five days through Thursday, the sixth largest weekly total ever. Concern the U.S. stocks have jumped too much too fast prompted Morgan Stanley’s Andrew Sheets to cut the U.S. stocks’s exposure in favor of European equities this week.

Sheets isn’t the only one having a hard time keeping up. The average of 23 strategists predictions is for the S&P 500 to reach 2,914 at year-end. If stocks were to maintain the same upward trajectory they’ve exhibited in the last nine days, it would take roughly two more weeks to reach the strategists’ target. At 3.4 times its book value, the S&P 500 trades at the most expensive level since 2002, while its 14-day relative strength index reached a level unseen since 1996. The S&P 500 rose 1.6% to 2,786 this week, pushing the spread between the gauge and its 200-day moving average to 11.5%, the widest in five years.

Read more …

Because it can.

Fed Pays Banks $30 Billion on “Excess Reserves” for 2017 (WS)

The Federal Reserve’s income from operations in 2017 dropped by $11.7 billion to $80.7 billion, the Fed announced today. Its $4.45-trillion of assets – including $2.45 trillion of US Treasury securities and $1.76 trillion of mortgage-backed securities that it acquired during years of QE – produce a lot of interest income. How much interest income? $113.6 billion. It also made $1.9 billion in foreign currency gains, resulting “from the daily revaluation of foreign currency denominated investments at current exchange rates.” For a total income of about $115.5 billion. Those are just “estimates,” the Fed said. Final “audited” results of the Federal Reserve Banks are due in March. This “audit” is of course the annual financial audit executed by KPMG that the Fed hires to do this.

It’s not the kind of audit that some members in Congress have been clamoring for – an audit that would try to find out what actually is going on at the Fed. No, this is just a financial audit. As the Fed points out in its 2016 audited “Combined Financial Statements,” the audit attempts to make sure that the accounting is in conformity with the accounting principles in the Financial Accounting Manual for Federal Reserve Banks. Given that the Fed prints its own money to invest or manipulate markets with – which makes for some crazy accounting issues – the Generally Accepted Accounting Principles (GAAP) that apply to US businesses to do not apply to the Fed. This annual audit by KPMG reveals nothing except that the Fed’s accounting is in conformity with the Fed’s own accounting manual.

The Fed pays the banks interest on their “Required Reserves” and on their “Excess Reserves” at the Fed. Excess Reserves are the biggie: As a result of QE, they jumped from $1.7 billion in July 2008, to $2.7 trillion at the peak in September 2014. They’ve since dwindled, if that’s the right word, to $2.2 trillion:

When the Federal Open Markets Committee (FOMC) meets to hash out its monetary policy, it also considers what to do with the interest rates that it pays the banks on “Required Reserves” and on “Excess Reserves.” In this cycle so far, every time the Fed has raised its target range for the federal funds rate (now between 1.25% and 1.50%) it also raised the interest rates it pays the banks on “required reserves” and on “excess reserves,” which went from 0.25% since the Financial Crisis to 1.5% now:

Read more …

They’ve been working to achieve it for a decade, and now they manage to fool themselves into thinking they got it, it’s not what they want.

Fed’s Rosengren Faults Inflation Target, Warns Of Harm (R.)

“I‘m disagreeing with that framework,” Rosengren said at the Global Interdependence Center in San Diego, referring to the Fed’s “balanced” approach to achieving a 2% inflation target and full employment. The Fed adopted this framework six years ago and has reaffirmed it each year since. Now, as Fed Governor Jerome Powell prepares to take the reins as Fed chief from Janet Yellen when her term ends early next month, a growing number of Fed policymakers want to rethink that framework. Rosengren’s comments Friday put the sharpest point to date on the debate, suggesting that a strict 2-percent inflation target could force the Fed to slam the brakes on the economy with aggressive rate hikes if the unemployment rate, now at 4.1%, continues to sink. It is already below the level that many economists think can be sustained without putting upward pressure on inflation.

While inflation running stubbornly below 2% has so far allowed the Fed to lift rates only gradually, that may change, Rosengren warned. “My concern is if we get too far away from where we want to be on a sustainable unemployment rate, and we use this current framework, then we will get to a situation where we have to raise rates fast enough that we will actually find it very difficult to get back to full employment without causing a recession,” Rosengren said. Rosengren suggested replacing the 2% inflation target with a target range for inflation of between 1.5% and 3%, in line with actual experience over the last 20 years. Under current conditions of low productivity and labor force growth, he said, the Fed would target inflation at the upper end of that range, and would be more patient with rate hikes.

Read more …

“Marketable borrowings..”

Goldman Warns Treasury Issuance To More Than Double In 2019 (ZH)

During yesterday’s surprisingly candid remarks by Bill Dudley, the second most important person in the Federal Reserve – the organization that is responsible for the third consecutive and largest ever yet asset bubble in history – said that one risk he was increasingly worried about was, drumroll, elevated asset prices. Because, supposedly, the Fed has little to input in how asset prices came to be where they are… Just as ominous was Dudley’s admission that the second risk he was concerned about is “the long-term fiscal position of the United States” i.e. US debt. Specifically, Dudley said that the Trump tax cut “will increase the nation’s longer-term fiscal burden, which is already facing other pressures, such as higher debt service costs and entitlement spending as the baby-boom generation retires.”

Oddly there was no mention of which administration doubled US debt from $10 trillion to $20 trillion in under a decade, and which organization enabled this to happen by keeping rates at record low levels, while crushing savers, and bailing out habitual gamblers. In any case, now that the narrative has shifted, and Donald Trump will be scapegoated not only for the upcoming “tremendous” market crash – something he has made especially easy by taking credit for every single uptick in the S&P – but also for the inevitable fiscal collapse of the United States, it is time to provide the backing for this particular strawman, and to do that, this morning Dudley’s former employer, Goldman Sachs released a report in which the bank’s chief economist said the he is updating his Treasury issuance forecast to account for recent revised deficit projections.

As a result, US marketable borrowings will more than double from below $500 billion in 2018 to over $1 trillion in 2019 as the debt tsunami finally get going. To build up the strawman, Goldman explains that US borrowing needs will rise for three reasons: First, recently enacted tax reform legislation is estimated to raise the deficit by more than $200bn, on average, each of the next four years, and Congress looks likely approve substantial new spending as well. Second, Fed portfolio runoff will increase the amount of debt the Treasury must issue to the public. Third, the Treasury’s cash balance is likely to rise by around $200bn once a longer-term debt limit suspension is enacted, which will also necessitate additional borrowing.

Goldman expects that the “substantial increase” in borrowing needs will be announced by the Treasury when it lays out its plans at the February quarterly refunding. What Goldman has left unsaid is what happens to interest rates at a time when on one hand US debt supply is set to double and on the other the Fed is set to continue shrinking its balance sheets, the ECB and BOJ are set to accelerate (and begin) tapering their own QEs and when global inflation is expected to keep rising. What is also unsaid is just who will be the marginal buyer of this debt tsunami when central banks increasingly shift away from debt monetization.

Read more …

2018 will show us just what bad shape Britain is in.

The Company That Runs Britain Is Near To Collapse. Watch And Worry (G.)

You may never have heard of Carillion. There’s no reason you should have. Its lack of glamour is neatly summed up by the name it sported in the 90s: Tarmac. But since then it has grown and grown to become the UK’s second-largest building firm – and one of the biggest contractors to the British government. Name an infrastructure pie in the UK and the chances are Carillion has its fingers in it: the HS2 rail link, broadband rollout, the Royal Liverpool University Hospital, the Library of Birmingham. It maintains army barracks, builds PFI schools, lays down roads in Aberdeen. The lot. There’s just one snag. For over a year now, Carillion has been in meltdown. Its shares have dropped 90%, it’s issued profit warnings, and it’s on to its third chief executive within six months. And this week, the government moved into emergency mode.

A group of ministers held a crisis meeting on Thursday to discuss the firm. Around the table, reports the FT, were business secretary Greg Clark, as well as ministers from the Cabinet Office, health, transport, justice, education and local government. Even the Foreign Office sent a representative. Why did Chris Grayling give the HS2 contract to a company that was already in existential difficulties? That roll call says all you need to know about the public significance of what happens next at Carillion. This is a firm that employs just under 20,000 workers in Britain – and the same again abroad. It has a huge chain of suppliers – and its habit of going in for joint ventures with other construction businesses means that a collapse at Carillion would send shockwaves through the industry and through the government’s public works programme.

To see what this means, take the HS2 rail link, where Carillion this summer was part of a consortium that won a £1.4bn contract to knock tunnels through the Chilterns. If Carillion goes under, what happens to the largest infrastructure project in Europe? What happens to its partners on the deal, British firm Kier, and France’s Eiffage? The project will need to be put back and the taxpayer will almost certainly have to step in. Imagine that same catastrophe befalling dozens of other projects across the UK and you get a sense of what’s at stake. Jobs will be cut, schools will go unbuilt (just a couple of months ago, Oxfordshire county council pulled the plug on a 10-year schools project) – and the government’s entire private finance initiative (PFI) model for building this country’s essential services will be shaken to the core.

Read more …

Good cop bad cop.

Spanish and Dutch Agree to Seek Soft Brexit Deal (BBG)

Spanish and Dutch finance ministers have agreed to push for a Brexit deal that keeps Britain as close to the European Union as possible, according to a person familiar with the situation. Spanish Economy Minister Luis de Guindos and his Dutch counterpart Wopke Hoekstra met earlier this week and discussed their common interests in Brexit, according to the person, who declined to be identified. Both have close trade and investment ties and are concerned about the impact of tariffs. They are also worried about losing U.K. contributions to the EU budget, the person said. The pound jumped to the strongest level since the referendum in 2016, trading 1.2% higher at $1.3690.

A spokeswoman for the Spanish Economy Ministry stressed that both ministers support chief EU negotiator Michel Barnier’s efforts, and said they’re not working together toward a soft Brexit deal. Earlier, a Spanish economy ministry official said that the two finance chiefs had underlined the importance of U.K. ties for both countries, and agreed to keep track of their common interests. A spokesman for Hoekstra declined to comment. The 27 remaining EU nations maintained a united front in the first phase of divorce talks, though the solidarity is already showing signs of strain as national interests diverge in the face of future trade discussions. French President Emmanuel Macron has warned countries to be disciplined and stick together to protect all their interests, in a kind of prisoner’s dilemma. EU countries have delegated the job of negotiations to Barnier.

Read more …

Steve reply to the one-dimensional Oxford Review of Economic Policy’s latest issue.

Economics Is Too Important To Be Left To The -Academic- Economists (Steve Keen)

Modern Economics is as conformist, and bland, as country and western music. This leaves radical thinkers singing the Blues as their voices go unheard. I’ve had an epiphany about my place in the Universe, and I owe it to the Oxford Review of Economic Policy and its special issue on “Rebuilding Macroeconomic Theory.” I am Elwood Blues, and the Universe (the part I inhabit anyway) is Bob’s Country Bunker. Halfway through the classic movie The Blues Brothers, Jake Blues cons the band into performing at a bar called Bob’s Country Bunker. When his incredulous brother Elwood asks the bar owner’s wife “What kind of music do you usually have here?” she cheerily replies “Oh, we got both kinds. We got Country and Western”.

So that’s it. I’m a Blues singer, and I’m surrounded by Country and Western fans—otherwise known as Mainstream Economists. Their musical spectrum ranges from Hank Williams to Dolly Parton, and if I play anything outside it — say, some Otis Redding or Muddy Waters — they’ll throw beer bottles at me. Sometimes, even full ones. Suddenly, it all makes sense. This epiphany arrived, not as a Divine revelation, but as a tweet (as they would, were Moses alive today; so much more convenient than stone tablets) on January 1, as the Review touted its soon-to-be-released special issue.

Read more …

“..how much of a “shithole” is our own country these days?”

Who Moved My Xanax? (Jim Kunstler)

The moral panic of “the Resistance” is back in DefCon 1 mode overnight just as the righteousness orgasm of the Golden Globe Awards was wearing off. Mr. Trump’s casual question to a couple of Senators vis-à-vis immigration policy — “Why do we want all these people from ‘shithole countries’ coming here?” — pushed the “racism” button at Resistance Central and CNN staged yet another of the orchestrated anxiety attacks it has perfected over the past year. The spotlight in this three-ring circus of perpetual offense, indignation, and alarm shifts back from the alleged sufferings of movie actresses to another intersectional victim group from the Dem/Prog pantheon of oppressed minorities: would-be immigrants-of-color. The President’s vulgar animus proves the charge that at least half the country is a lynch mob.

Of course, the most interesting feature of this neurotic zeitgeist is the displacement dynamic among the political Left as its frantic virtue-signaling attempts to distract everybody else in the room from its own dark and shameful emotions about the composition of American culture. As a born-and-bred Boomer (ex-)liberal from Manhattan’s Upper East Side, I can assure you from direct experience that this group has, at best, ambiguous feelings about the lower orders of mankind — my Gawd, did he actually say that? — and, at worst, a certain unmanageable contempt that stirs deep fears of moral failure. Mr. Trump’s remark raises another interesting question that has not received much analysis amidst the latest panic: namely, how much of a “shithole” is our own country these days?

I would avouch, contrary to the limp narrative of boom times, that the USA is visibly whirling around the drain in just about every way that matters. Except for the centers of financialization — New York, Washington, San Francisco — most of our cities are hollowed-out wrecks, and visitors to San Francisco will tell you that the place is literally a shithole, from the army of homeless people who, by definition, have no bathrooms. Our ghastly suburbs, where so many formerly middle-class Americans are now marooned in debt, despair, and civic alienation, have no prospects for serving as a plausible living arrangement anymore, and were so badly built in the first place that their journey to ruin is destined to be an epically short leap that will amaze historians of the future roasting ‘possums around their campfires.

All of the important activities in this land have been converted into odious rackets, by which I mean nakedly dishonest money-grubbing scams, especially the two sectors that used to be characterized by first, doing no harm (medicine), and seeking the truth (education). But everything else we do is infected by engineered falsehood and mendacity, including the news media, the law, banking, government, retail commerce, you name it. We’re living in a culture of pervasive control fraud, in which authorities set up looting and asset-stripping operations without any restraint.

Read more …

They should be testing us, not the other way around.

Dolphins Show Self-Recognition Earlier Than Human Children (NYT)

Humans, chimpanzees, elephants, magpies and bottle-nosed dolphins can recognize themselves in a mirror, according to scientific reports, although as any human past age 50 knows, that first glance in the morning may yield ambiguous results. Not to worry. Scientists are talking about species-wide abilities, not the fact that one’s father or mother makes unpredictable appearances in the looking glass. Mirror self-recognition, at least after noon, is often taken as a measure of a kind of intelligence and self-awareness, although not all scientists agree. And researchers have wondered not only about which species display this ability, but about when it emerges during early development. Children start showing signs of self-recognition at about 12 months at the earliest and chimpanzees at two years old.

But dolphins, researchers reported Wednesday, start mugging for the mirror as early as seven months, earlier than humans. Diana Reiss a psychologist at Hunter College, and Rachel Morrison, then a graduate student working with Reiss, studied two young dolphins over three years at the National Aquarium in Baltimore. Dr. Reiss first reported self-recognition in dolphins in 2001 with Lori Marino, now the head of The Kimmela Center for Animal Advocacy. She and Dr. Morrison, now an assistant professor in the psychology department at the University of North Carolina Pembroke collaborated on the study and published their findings in the journal PLoS One. Dr. Reiss said the timing of the emergence of self-recognition is significant, because in human children the ability has been tied to other milestones of physical and social development.

Since dolphins develop earlier than humans in those areas, the researchers predicted that dolphins should show self-awareness earlier. Seven months was when Bayley, a female, started showing self-directed behavior, like twirling and taking unusual poses. Dr. Reiss said dolphins “may put their eye right up against the mirror and look in silence. They may look at the insides of their mouths and wiggle their tongues.” Foster, the male, was almost 14 months when the study started. He had a particular fondness for turning upside down and blowing bubbles in front of the one-way mirror in the aquarium wall through which the researchers observed and recorded what the dolphins were doing.

The animals also passed a test in which the researchers drew a mark on some part of the dolphin’s body it could not see without a mirror. In this so-called mark test, the animal must notice and pay attention to the mark. Animals with hands point at the mark and may touch it. The dolphins passed that test at 24 months, which was the earliest researchers were allowed to draw on the young animals. Rules for animal care prohibited the test at an earlier age because of a desire to have the animals develop unimpeded. During testing, the young animals were always with the group of adults they live with, and only approached a one-way mirror in the aquarium wall when they felt like it.

Read more …

A loss of 2% oxygen is all it takes.

The Ocean Is Suffocating—But Not For The First Time (Atlantic)

The ocean is losing its oxygen. Last week, in a sweeping analysis in the journal Science, scientists put it starkly: Over the past 50 years, the volume of the ocean with no oxygen at all has quadrupled, while oxygen-deprived swaths of the open seas have expanded by the size of the European Union. The culprits are familiar: global warming and pollution. Warmer seawater both holds less oxygen and turbocharges the worldwide consumption of oxygen by microorganisms. Meanwhile, agricultural runoff and sewage drives suffocating algae blooms. The analysis builds on a growing body of research pointing to increasingly sick seas pummeled by the effluent of civilization. In one landmark paper published last year, a research team led by the German oceanographer Sunke Schmidtko quantified for the first time just how much oxygen human civilization has already drained from the oceans.

Compiling more than 50 years of disparate data, gathered on research cruises, from floating palaces of ice in the arctic to twilit coral reefs in the South Pacific, Schmidtko’s team calculated that the Earth’s oceans had lost 2% of their oxygen since 1960. Two% might not sound that dramatic, but small changes in the oxygen content of the Earth’s oceans and atmosphere in the ancient past are thought to be responsible for some of the most profound events in the history of life. Some paleontologists have pointed to rising oxygen as the fuse for the supernova of biology at the Cambrian explosion 543 million years ago. Similarly, the fever-dream world of the later Carboniferous period is thought to be the product of an oxygen spike, which subsidized the lifestyles of preposterous animals, like dragonflies the size of seagulls.

On the other hand, dramatically declining oxygen in the oceans like we see today is a feature of many of the worst mass extinctions in earth history. “[Two%] is pretty significant,” says Sune Nielsen, a geochemist at the Woods Hole Oceanographic Institution in Massachusetts. “That’s actually pretty scary.” Nielsen is one of a group of scientists probing a series of strange ancient catastrophes when the ocean lost much of its oxygen for insight into our possible future in a suffocating world. He has studied one such biotic crisis in particular that might yet prove drearily relevant. Though little known outside the halls of university labs, it was one of the most severe crises of the past 100 million years. It’s known as Oceanic Anoxic Event 2.

Read more …