Feb 042024
 
 February 4, 2024  Posted by at 9:40 am Finance Tagged with: , , , , , , , , ,  36 Responses »


Jules Bastien-LePage The annunciation to the shepherds 1875

 

RFK Jr Slams American Attacks On Syria and Iraq (RT)
Israel vs. Hezbollah: A New War Will Consume The Entire Middle East (Sadygzade)
Biden’s Justification For Hitting Iran Puts NATO Troops in Danger (Sp.)
US House To Vote On Israel-only Aid Bill – Speaker (RT)
Staffers Speaking Out Shows How ‘Morally Bankrupt’ Biden Admin Has Grown (Sp.)
The Silence of the Damned (Chris Hedges)
Tucker Carlson Spotted In Moscow (RT)
Good Money After Bad: Where Will EU Funds for Ukraine Come From? (Sp.)
Ukraine Coerces Mass-Conscripts Unfit for Military Service – PoW (Sp.)
Is Zaluzhny Getting Ready to Take Down Zelensky? (Scott Ritter)
Taiwan Helping To Arm Moscow – WaPo (RT)
Florida Sends Troops To Stop Migrant ‘Invasion’ (RT)
Germany’s Economy Is Dying. Here’s Why And What Happens Next (RM)
F-35 Jet Fails to Meet Basic Operating Standards in 65 Areas (Sp.)
India Vows To Tackle Population Growth Challenges (RT)
It’s Not ‘Inflation’ – We’re Just Getting Ripped Off. Here’s Proof. (OW)
Imran Khan Sentenced To Third Prison Term In A Week (RT)

 

 


Paris, February 3 2024

 

 

Macron/Farmers
https://twitter.com/i/status/1753757359329919212

 

 

 

 

Putin
https://twitter.com/i/status/1753827565293436943

 

 

Elon Musk: Biden’s strategy is very simple: 1. Get as many illegals in the country as possible. 2. Legalize them to create a permanent majority – a one-party state. That is why they are encouraging so much illegal immigration. Simple, yet effective.

Most people in America don’t know that the census is based on a simple headcount of people (including illegals) *not* just citizens. This shifts political power and money to states and Congressional districts with the highest number of illegals.

 

 

JK Rowling

 

 

 

 

“If we ‘do not seek conflict,’ then let’s get the troops out of there..” [..] “They are not welcome. They are not needed..”

RFK Jr Slams American Attacks On Syria and Iraq (RT)

The US should withdraw its ground troops from Middle Eastern countries that do not welcome them, independent candidate for US president Robert F. Kennedy Jr has said.He said the escalation could have been avoided, reacting in an X (formerly Twitter) post to Washington’s attack on more than 80 targets allegedly linked to Iran’s Revolutionary Guard (IRGC) in Iraq and Syria in a wide-ranging air assault. US Central Command says it hit 85 Iranian-linked targets in Syria and Iraq in retaliation against the recent “Iran-affiliated” fighters’ attack that killed three US servicemen in Jordan. President Joe Biden’s X post read that the US does not “seek conflict in the Middle East or anywhere else in the world. But to all those who seek to do us harm: We will respond,” despite Iran denying involvement in the incident.

“If we ‘do not seek conflict,’ then let’s get the troops out of there,” Kennedy said, apparently reacting to Biden’s statement. “They are not welcome. They are not needed,” he added. Kennedy claimed that the current escalation would not have been necessary if Washington hadn’t put its military “in the crosshairs” of Shiite militias. He described the existence of these groups “as a legacy of our illegal war in Iraq.” He recalled that both Iraq and Syria had asked the US troops to leave their territory while Iran would not tolerate America’s military presence on its borders.

Besides pulling US troops “out of the Mideast,” Kennedy urged Washington to forge ties with regional powers instead. The presidential candidate also described the troop presence in the area as “indefensible targets for anyone in the region who wants to provoke a conflict.”Iraq has rebuked the US over the airstrikes, saying they constitute “a violation of Iraqi sovereignty” and “pose a threat that could lead Iraq and the region into dire consequences. The Syrian military, as quoted by SANA news agency, denounced the raid as “the aggression of the American occupation forces.”

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“If a temporary reduction in the intensity of the fighting in Gaza is achieved, the controversy within Israel surrounding the current Netanyahu government will escalate. Obviously, the end of the conflict would also lead to the end of the prime minister’s political career and those of other prominent figures.”

Israel vs. Hezbollah: A New War Will Consume The Entire Middle East (Sadygzade)

Since the first days of the current escalation, Israeli tensions with Hezbollah have increased. And thoughts of launching military action to the north were in the minds of the Jewish state’s political and military establishment as early as late October. For example, The Wall Street Journal, citing sources, reported that on October 11 US President Joe Biden persuaded Israeli Prime Minister Benjamin Netanyahu not to launch a preemptive strike against Hezbollah because of the risk of a major war in the region. On that day, Israeli intelligence received information about Hezbollah’s intention to invade Israel from several directions, and Israeli fighter jets were already in the air, waiting for orders to attack the group’s facilities in Lebanon. It took about six hours of negotiations and meetings for Israeli officials to back down, WSJ sources said. The situation on the border between Israel and Hezbollah remains tense, and the possibility of a full-scale conflict is real.

This was confirmed by Israeli media, citing remarks by National Security Council head Tzachi Hanegbi at a closed session of the Knesset Foreign Affairs and Defense Committee on January 17. Hanegbi also provided interesting details regarding Hamas. According to the official, Hamas’ leader in Gaza, Yahya Sinwar, has taken a harder line during negotiations for the exchange of hostages, which will likely draw out the process of returning the 117 people still held captive since the October attacks on Israel. In his remarks, Hanegbi emphasized that the physical elimination of Sinwar is still a pressing goal for Israeli security forces. However, neither Hanegbi nor other Israeli figures have offered concrete solutions for a long-term arrangement in Gaza. This is worrisome, as the WSJ notes, citing its White House sources. The newspaper claims that efforts to convince Netanyahu to agree to an end-of-conflict option that includes handing over control of Gaza to the Palestinian National Authority have failed.

Instead, Israel intends to carry out a prolonged operation against Hamas. However, recently negotiators from Israel, the US, Egypt and Qatar met in Paris and agreed on the basics of a new deal aimed at releasing the hostages. This was reported by NBC News on January 29. The plan envisions the gradual release of captives, starting with women and children. For its part, Israel will offer limited pauses in hostilities and the admission of humanitarian aid, as well as the release of Palestinian prisoners. The plan has been sent to representatives of Hamas. If a temporary reduction in the intensity of the fighting in Gaza is achieved, the controversy within Israel surrounding the current Netanyahu government will escalate. Obviously, the end of the conflict would also lead to the end of the prime minister’s political career and those of other prominent figures.

Even Washington, Israel’s most important ally, has delivered repeated messaging that Netanyahu must go. No one wants a major war in the region. Hezbollah, which is closely allied with Iran, also does not want tensions to escalate into open warfare. This is demonstrated by its restraint, both in statements by top officials and in attacks on Israeli forces. But if Netanyahu does decide to launch an operation in southern Lebanon, the war will be long and bloody. Representatives of the “Axis of Resistance” led by Iran will lend support with even greater effort. Then the specter of war will become a reality and the Middle East will burst into flames, the consequences of which no one can assess or foresee.

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“..there’s no leadership [the US] left it up to Netanyahu. He’s the tail wagging the dog..”

Biden’s Justification For Hitting Iran Puts NATO Troops in Danger (Sp.)

On Friday, US President Joe Biden fulfilled his promise to strike Iranian targets in Syria and Iraq, further escalating the region even as the White House insists that it does not seek war with Iran. Michael Maloof, a former senior security policy analyst for the Office of the Secretary of Defense with nearly 30 years of experience, told Sputnik’s Fault Lines that the justification used by the White House could easily be applied by Russia to NATO countries supporting Ukraine. “You’re hearing from congressmen and senators saying ‘but we need to hit Iran for supplying the Houthis and Hamas and Hezbollah,” Maloof explained. “Well, does Russia then have a right to hit US and NATO allies, as a result of supplying weapons to Ukraine to battle Russians?” The United States has placed the blame on Iran for the Sunday drone attack that killed three US service members and injured dozens more on the border of Syria and Jordan.

While the US admits that it has no evidence Iran helped plan the attack, the Biden administration has been clear it blames Iran because the country allegedly funds those groups and other militants. “This afternoon, at my direction, U.S. military forces struck targets at facilities in Iraq and Syria that the IRGC and affiliated militia use to attack U.S. forces,” US President Joe Biden said in a statement released Friday by the White House. “I think that if Biden were to follow through, then that raises a whole new specter of opening up NATO countries to potential attack,” he continued, adding that the US is simply hoping Russian President Vladimir Putin “doesn’t follow through” with that justification. Maloof argued that the US should reevaluate the situation in the Middle East but it’s difficult because the US looks “at the Middle East through the prism of Israel all the time.”

“We’ve got to somehow figure a way out of it. Instead, we’re digging that hole deeper and even though there might be some attempts to try and persuade [Israeli Prime Minister Benjamin] Netanyahu to calm down and have a ceasefire and try to resolve things, it’s doing just the opposite. “The problem is that Biden has left the conduct of the war up to Netanyahu, and Netanyahu knows this and he’s basically dragging us along – we’re captives of Netanyahu,” Maloof explained. “You don’t have any, there’s no leadership [the US] left it up to Netanyahu. He’s the tail wagging the dog,” he added later. Maloof further argued that Israel has been getting the United States to do its dirty work for decades.

“We always hear Netanyahu wanting the United States involved, or us to bomb the sites… This is the way we’ve been conducting ourselves since… 2003 when we invaded Iraq.” Asked by Co-host Melik Abdul how the US should have responded to the attack, Maloof argued that the US should leave the region. “I think we shouldn’t even be in those locations. And I think we should have gotten out some time ago.”

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Biden will veto it. They want Ukraine on that bill.

US House To Vote On Israel-only Aid Bill – Speaker (RT)

The speaker of the United States House of Representatives, Mike Johnson, announced on Saturday that he would hold a vote on a “clean, standalone” aid package for Israel that will not entail any spending cuts. The newly proposed legislation is set to include $17.6 billion in additional military funding as well as “important funding for US forces in the region.” The initial $14.3 billion package, rejected by the Senate last year, included an equal amount in spending cuts to the Internal Revenue Services (IRS) and was therefore branded by Democrats as a “poison pill.” “Next week, we will take up and pass a clean, standalone Israel supplemental package,” he wrote in a letter to colleagues sent on Saturday afternoon. “The Senate will no longer have excuses, however misguided, against swift passage of this critical support for our ally.”

The announcement comes as the Senate prepares to vote on a long-anticipated national security supplemental requested by US President Joe Biden, which will include tougher US border controls paired with nearly $60 billion in aid to Ukraine, as well as more assistance to Israel and Taiwan. Majority Leader Chuck Schumer said on Friday that he was preparing to release the legislation text “no later than Sunday” with the first procedural vote coming by midweek. However, Johnson previously criticized the impending deal, calling it “dead on arrival” in the lower chamber if the provisions are what they are rumored to be. The Senate leadership “is aware that by failing to include the House in their negotiations, they have eliminated the ability for swift consideration of any legislation,” Johnson wrote.

The White House previously indicated that it would oppose a stand-alone Israel aid bill, with John Kirby, the National Security Council’s coordinator for strategic communications, saying President Biden would veto it. While Washington is struggling to secure additional military funding for Ukraine, Brussels approved a €50 billion ($54 billion) aid package on Thursday, having reportedly pressured Hungarian Prime Minister Viktor Orban into lifting his veto. Orban, who previously called Ukraine “one of the most corrupt countries in the world,” accused the “imperialist EU” of “blackmailing” him into accepting the deal.

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“The fact that people within the administration who are risking their jobs often to take these actions are speaking out, I think, is important and just shows a real shift in this country..”

Staffers Speaking Out Shows How ‘Morally Bankrupt’ Biden Admin Has Grown (Sp.)

On Thursday, the head of the US Agency for International Development, Samantha Power, who is a world-renowned scholar on genocide, was confronted during a public event over her complicity in the Biden administration’s support of Israel and its actions in Gaza. “You wrote a book on genocide and you’re still working for the administration: You should resign and speak out,” Agnieszka Skyes told US media after recently leaving her job at the US Agency for International Development (USAID). Dr. Margaret Flowers, the co-editor of Popular Resistance, told Sputnik’s The Critical Hour that the disconnect between the Biden administration and its employees shows how “morally bankrupt” the administration’s stance on Gaza has become.

“You have congressional staffers, hundreds of them, that called upon their bosses to support a ceasefire. You have White House staffers, executive office staffers protesting outside of the White House, calling on President [Joe] Biden to demand, you know, to push for a ceasefire,” Flowers summarized. “The fact that people within the administration who are risking their jobs often to take these actions are speaking out, I think, is important and just shows a real shift in this country and just how morally bankrupt this administration is for supporting genocide.” Co-host Garland Nixon noted that, particularly among the USAID employees, they have previously supported policies that “killed unmentionable thousands of people,” but this seems “too far” even for them.

“I think also [that] some of the people that go to work in these institutions don’t fully have a good political analysis of what it is that they’re actually working for,” Flowers responded. “We know that the the USAID, which has ‘AID’ in its name, is an institution that has really worked hand-in-hand with the CIA to undermine governments all around the world to, you know, put in place support for organizations, media, nonprofit groups within countries that are strictly there to destabilize the countries so that the United States can try to overthrow their governments.” “This is an overreach point. I think we’re seeing that in so many different areas, though, right now, the kind of overreach of the United States and its Western allies and the whole world is seeing it but it’s great that folks are seeing it here, too,” Flowers explained.

The shift, according to Flowers, comes because Israel’s actions in Gaza are on display for the entire world to see. “We know that … all of these main, mainstream corporate media outlets are really in place to defend the status quo, and they’ve been doing that. But at a certain point, when you have the rest of the media world publishing the truth about what’s happening and you have public opinion shifting, they can’t continue on that same line as strongly as they were, because they can’t save face by doing that when the rest of the world actually sees what’s going on,” Flowers argued. “This is a huge issue for people, whereas foreign policy has not typically been a strong factor that folks care about. Things have gone so far that people do now,” she added.

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“..Palestinians have been reduced to eating grass and drinking contaminated water…”

The Silence of the Damned (Chris Hedges)

There is no effective health care system left in Gaza. Infants are dying. Children are having their limbs amputated without anesthesia. Thousands of cancer patients and those in need of dialysis lack treatment. The last cancer hospital in Gaza has ceased functioning. An estimated 50,000 pregnant women have no safe place to give birth. They undergo cesarean sections without anesthesia. Miscarriage rates are up 300 percent since the Israeli assault began. The wounded bleed to death. There is no sanitation or clean water. Hospitals have been bombed and shelled. Nasser Hospital, one of the last functioning hospitals in Gaza, is “near collapse.” Clinics, along with ambulances – 79 in Gaza and over 212 in the West Bank – have been destroyed.

Some 400 doctors, nurses, medics and healthcare workers have been killed — more than the total of all healthcare workers killed in conflicts around the world combined since 2016. Over 100 more have been detained, interrogated, beaten and tortured, or disappeared by Israeli soldiers. Israeli soldiers routinely enter hospitals to carry out forced evacuations – on Wednesday troops entered al-Amal Hospital in Khan Younis and demanded doctors and displaced Palestinians leave – as well as round up detainees, including the wounded, sick and medical staff. On Tuesday, disguised as hospital workers and civilians, Israeli soldiers entered Jenin’s Ibn Sina Hospital in the West Bank and assassinated three Palestinians as they slept.

The cuts to funding for the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) — collective punishment for the alleged involvement in the Oct. 7 attack of 12 of its 13,000 UNRWA workers — will accelerate the horror, turning the attacks, starvation, lack of health care and spread of infectious diseases in Gaza into a tidal wave of death. The evidence-free charges, which include the accusation that 10 percent of all of UNRWA’s Gaza staff have ties to Islamist militant groups, appeared in the Wall Street Journal. The reporter, Carrie-Keller Lynn, served in the Israel Defense Forces (IDF). Given the numerous lies Israel has employed to justify its genocide, including “beheaded babies” and “mass rape,” it is reasonable to assume this may be another fabrication. The allegations, of which details remain scant, are apparently based on confessions by Palestinian detainees — most certainly after being beaten or tortured. These allegations were enough to see 17 countries including the U.S., Canada, U.K., Germany, France, Australia and Japan cut or delay funding to the vital U.N. agency.

UNRWA is all that stands between the Palestinians in Gaza and famine. A handful of countries, including Ireland, Norway and Turkey, maintain their funding. Eight of the UNRWA employees accused of participating in the Oct. 7 attack in southern Israel, where 1,139 people were killed and 240 abducted, were fired. Two have been suspended. UNRWA has promised an investigation. They account for 0.04 percent of UNRWA’s staff. Israel is seeking to destroy not only Gaza’s health care system and infrastructure, but UNRWA which provides food and aid to 2 million Palestinians. The object is to make Gaza uninhabitable and ethnically cleanse the 2.3 million Palestinians in Gaza. Hundreds of thousands are already starving. Over 70 percent of the housing has been destroyed. More than 26,700 people have been killed and over 65,600 have been injured. Thousands are missing. Some 90 percent of Gaza’s pre-war population has been displaced, with many living in the open. Palestinians have been reduced to eating grass and drinking contaminated water.

https://twitter.com/i/status/1753752270783783330

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If he can get Putin, that would be great.

“..the Russian leader would wait to sit down with any American journalist until the US population was no longer so “seriously stupefied by Russia-hating propaganda.”

Tucker Carlson Spotted In Moscow (RT)

American journalist Tucker Carlson has spent several days in Russia and even attended a ballet performance at the Bolshoi Theatre, Telegram channel Mash reported on Saturday, sharing several photos of the conservative commentator. Carlson allegedly touched down at Vnukovo airport on a Turkish Airlines flight from Istanbul on Thursday after several hours’ delay, according to the channel. He was later spotted taking in the ballet Spartacus at the Bolshoi Theatre in Moscow. The conservative commentator has yet to confirm the trip and it remains unclear what business he had in Russia. However, rumors of his intention to interview President Vladimir Putin have been circulating since last year.

Kremlin spokesman Dmitry Peskov did not rule out the possibility of Carlson interviewing Putin when asked about it in September, though he explained that the Russian leader would wait to sit down with any American journalist until the US population was no longer so “seriously stupefied by Russia-hating propaganda.” Carlson himself told Swiss outlet Die Weltwoche that he had been prevented from setting up an interview with Putin by the White House. While he expressed dismay that he did not receive more support from his fellow journalists regarding his intention to sit down with the Russian president and questioned why Americans are “not allowed to hear” Putin’s voice, he declined to provide any further details regarding when the interview was supposed take place or how the presidential administration of Joe Biden intervened to stop it.

The former Fox News host claimed previous attempts to secure an interview with Putin had led to aggressive surveillance by the National Security Agency, alleging he was “unmasked” by the spooks and the contents of his emails were leaked to the media in 2021 in order to “paint [him] as a disloyal American” and force him off the cable news network. The NSA denied Carlson was an intelligence target and claimed it never sought to take him off the air.

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“..According to the European Council, the bloc has set up the so-called Ukraine Facility for the period 2024-2027 to “contribute to the recovery, reconstruction and modernization of the country..”

Good Money After Bad: Where Will EU Funds for Ukraine Come From? (Sp.)

European Union (EU) member states have agreed on a €50 billion ($54 billion) support package for Ukraine over four years, overcoming Hungary’s resistance. But where will the EU get that money? The EU could commandeer interest paid on frozen Russian assets to fund Ukraine during its war with Moscow. Europe’s economy is facing stagnation, with zero economic growth for October-to-December period reported by EU statistics agency Eurostat. The Eurozone inflation rate has yet to fall below the target two percent threshold, with consumer prices still remaining high. Against that backdrop EU member states are cutting subsidies, reducing energy consumption and diminishing industrial production. Protests by farmers have rocked the continent since early January. Nonetheless, Brussels has found €50 billion ($54 billion) to support the embattled Kiev regime for four more years. But where will this money come from?

According to the European Council, the bloc has set up the so-called Ukraine Facility for the period 2024-2027 to “contribute to the recovery, reconstruction and modernization of the country, foster social cohesion and progressive integration into the Union, with a view to possible future Union membership.” To that end the EC has allocated €50 billion, of which: • €33 billion ($35.9 billion) comes “in the form of loans guaranteed by extending until 2027 the existing EU budget guarantee, over and above the ceilings, for financial assistance to Ukraine available until the end of 2027,” the document sets out. • €17 billion ($18.5 billion) comes “in the form of non-repayable support, under a new thematic instrument the Ukraine Reserve, set up over and above the ceilings of the MFF 2021-27.” The EC document specifies that revenues “could be generated under the relevant Union legal acts, concerning the use of extraordinary revenues held by private entities stemming directly from the immobilized Central Bank of Russia assets.”

On February 1, CNN claimed that the EU had taken a step towards seizing billions of dollars in interest payments generated by Russian assets frozen in European accounts. Media reported that roughly €200 billion ($218 billion) remain in the EU, mainly in Euroclear, a Belgium-based financial services company. The media outlet highlighted that the EU approved the €50 billion Ukraine package as it “came closer to finalizing a plan” of using the profits from the Russian Central Bank’s sequestred assets — indicating that it has yet to gain access to the funds. Euroclear revealed on Thursday that the frozen Russian assets had yielded €5.2 billion ($5.6 billion) in interest on income assets since 2022.

On Monday, EU member states “agreed in principle” that profits from the Russian assets will be set aside and not be paid out as dividends to shareholders until the bloc’s members decide to set up a “financial contribution to the [EU] budget that shall be raised on these net profits to support Ukraine”, according to a draft document quoted by Euroactive. The document claimed that the levy will be “consistent with applicable contractual obligations, and in accordance with [EU] and international law.” After that the EC would transfer the money to the EU’s accounts and then to Ukraine, the media noted, specifying that the proposal targets future profits and would not be applied retrospectively. It is believed that Russia’s frozen assets in the EU could generate an estimated €15-17 billion over four years, which would be transferred to Ukraine, according to the press.

Speaking to Sputnik last October, Jacques Sapir, director of studies at the School for Advanced Studies in the Social Sciences (EHESS) in Paris, argued that any attempt by the EU to grab Russia’s frozen assets or revenues from them could turn into a legal nightmare for the EU leadership and particular member states where the money is being stored. “As a matter of fact, if assets belong to the Russian state legally, you will have to prove that this state is a ‘failing state,’ something impossible,” Sapir told Sputnik on October 29, 2023. “If assets belong to private persons, you need a legal conviction against these persons. If you can’t do both and that you take away revenues to divert them to a third party (Ukraine) this is no less than a theft. Then you will be liable to legal action. But, what is even more important, you will probably discourage all foreign investors from investing in the EU.”

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“..I said that I have a metal plate in my arm – and now it is still there. They didn’t care..”

Ukraine Coerces Mass-Conscripts Unfit for Military Service – PoW (Sp.)

The Ukrainian Armed Forces are massively conscripting people who are unfit for military service for health and age reasons, prisoners of war told Sputnik. “Caught in such a time that they gave everyone a military ID. They gave everyone a military ID…. I passed the medical examination right away. I said that I have a metal plate in my arm – and now it is still there. They didn’t care,” one prisoner, Nazar Vashkevich, said. Another, Viktor Tkachenko, reported that he had received a draft notice for the fifth time, despite having several confirmed illnesses that preclude service in the army. “I was mobilized. I received a summons, the fifth, at work. It turned out that according to my state of health I was able to serve. Before that I was unsuitable. I had many medical reports: high blood pressure, hernia, pinched vertebrae,” he said.

According to the captives, the Ukrainian Army has begun to take people en masse who do not fit the draft. “Here, look: people over 50. They are already taking 50-year-olds. My grandfather was with me – he is 57 years old. He also has health problems… So where can he fight? How should he go on the assaults? How should he go to the trenches? Why? To get killed right away? And there’s a boy with me, even younger. I don’t know what’s wrong with him. He’s 24. He was drafted. It turns out that he is a senior gunner by rank,” Vashkevich complained. Volodymyr Zelensky said in December 2023 that he had been approached by the General Staff of the Ukrainian Armed Forces with a request to recruit an additional 450,000-500,000 men for the army. The government submitted a draft law on mobilization to parliament. The minimum age for mobilization was lowered from 27 to 25 years. The bill caused outrage in the country and was sent back for revision.

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“..a political arena which, if he remains as a military commander, will be corrupted by his presence.”

Is Zaluzhny Getting Ready to Take Down Zelensky? (Scott Ritter)

President Volodymyr Zelensky reportedly summoned the commander of the Ukrainian armed forces, General Valerie Zaluzhny, to a meeting on Monday, January 29, 2024, where he informed his military commander that he was being relived from his position. According to accounts that have appeared in western media, Zaluzhny refused to step down. As of Friday, February 2, 2024, the precise status of General Zaluzhny remains uncertain amid a swirl of rumors regarding his imminent dismissal. The rift between Zelensky and Zaluzhny represents a serious blow to one of the fundamental principles which underpins democratic society—a civil-military relationship predicated on the simple proposition that a democratically elected civilian leadership is the final authority on all matter, including military, and in the case of disputes between the civil and military leadership, civilian authority retains supreme authority.

If the reports of what is tantamount to a refusal to obey the lawful order of his civilian commander in chief are true, General Zaluzhny has opened a pandora’s box which, if left unresolved, could lead to the rapid unravelling of Ukraine’s civilian-controlled government and open the door for the emergence of a government that is either subordinated to the will of the Ukrainian military, or which has been replaced by a military junta. Neither bodes well either for the sustainment of the notion that Ukraine functions as a democracy along the lines of its European and American allies, or for the prospects of stable governance for Ukraine at a time when it faces unprecedented economic, military, and foreign policy challenges. History is replete with examples of civil-military disagreements during times of war.

American history is home for two premier examples—the split between George McClellan and Abraham Lincoln during the Civil War, and the disagreements between Douglas MacArthur and Harry Truman during the Korean conflict. However, in both cases when the civilian authority demanded that the military authority resign, the military authority complied. Zaluzhny, it appears, refused to step aside, taking the issue of military defiance of civil authority into unchartered territory. Managing civil-military relations is a complex process that balances the advice the military provides to its civilian masters with the actual oversight provided by the civilian leadership over military affairs. Given the disparity that exists fact-based military reality and the simplified and often politicized fiction that civilian leadership embraces, rifts are not only to be expected, but are in fact a reality that must be anticipated, and mechanisms put in place to keep them from erupting into crises.

One of the biggest problems faced in the civil-military relationship is that of agenda control and information management. While disagreements can and will emerge between military leaders and their civilian masters over military issues, the military can never lose sight of the fact that if the civil-military relationship is to succeed, the military cannot possess an agenda that deviates from that of its civilian leadership. Nor should the military take advantage of the fact that it in large part dominates the flow of information to society about military matters to use the media as a tool to articulate its own agenda.

In the case of the Zelensky-Zaluzhny split, the record seems to reflect that Zaluzhny has, for some time now, been engaged in activities which point to his having an agenda that not only deviates from that of his commander in chief, but in many ways is designed to be in opposition to his commander in chief—an agenda which paints Zaluzhny as a political competitor to Zelensky. Again, the examples of George McClellan and Douglas MacArthur point to the fact that such actions are not unique in the history of civil-military relations in democracies. However, in both of those circumstances, the military commanders resigned their positions when ordered to do so, and continued their political opposition in the civil arena, without the active backing of a military which was obligated to remain loyal to its civilian leadership. Zaluzhny, however, has refused to step aside, taking his differences with Zelensky into a political arena which, if he remains as a military commander, will be corrupted by his presence.

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Huh, what? Our friends?

Taiwan Helping To Arm Moscow – WaPo (RT)

Companies based in Taiwan have sold Russia more than $20 million in advanced equipment that can be used for weapons production, Washington Post has claimed, noting that Moscow’s defense sector has ramped up purchases in recent months. Citing “trade records and Russian tax documents” obtained by the outlet, the Post pointed to entities in the Russian arms industry that have boosted transactions with Taiwan, with one firm, I Machine Technology, importing over $20 million in CNC machine tools produced on the island since January 2023. The machines were reportedly sent in 63 separate shipments. “The Taiwan-made machines accounted for virtually all of the Russian company’s imports in the first seven months of last year, according to the records, and the company’s sales during that period were overwhelmingly to the Russian defense industry,” the newspaper added, although it did not specify how the CNC machines were to be used.

Former US arms control official Kevin Wolf told the Post that such transfers likely violated sanctions imposed by both Washington and Taipei in response to the conflict in Ukraine. However, an executive from I Machine Technology, Aleksey Bredikhin, argued that this was not the case. Instead, Bredikhin said that any purchases after January were for spare parts only, and did not run afoul of Taiwan’s export controls, which were further tightened early this year. “I’m not buying anything from them except for parts,” he added. Nonetheless, the American official claimed that the CNC machines were “very important for making military items” and could be connected to “military-end uses,” including manufacturing drones. Another executive from one of the Taiwanese producers, Yu Ming Je, questioned the authenticity of the files obtained by the Post, and also insisted that the sales were in line with local laws.

Asked about ties to Russia’s arms industry, Yu said he was not aware of any such connections with his company, adding “Distributors basically have many users.” A close strategic ally of the US and a frequent buyer of American arms, Taiwan has largely fallen in line with the US sanctions policy toward Moscow, imposing several layers of penalties since Russia sent troops into Ukraine in early 2022. In announcing its latest round of sanctions, which mirrored those already imposed by the US and European Union, Taiwan’s economy ministry vowed to “in principle” block all export license applications to Russian firms going forward. The ministry declined to comment on whether such equipment sales violated export rules, but said the government planned to specifically bar sales to I Machine Technology in the future.

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It’ll be quite the day in Texas..

Florida Sends Troops To Stop Migrant ‘Invasion’ (RT)

Governor Ron DeSantis has announced that he will deploy members of the Florida National Guard to assist Texas in repelling an “invasion” of illegal immigrants. US President Joe Biden’s administration has fought to prevent Texas from sealing the border. Roughly 1,000 soldiers will be sent to Texas, DeSantis’ office said in a statement on Thursday. They will be joined by members of the Florida State Guard, and around 90 members of various Florida law enforcement agencies already at the border. “States have every right to defend their sovereignty and we are pleased to increase our support to Texas as the Lone Star State works to stop the invasion across the border,” DeSantis said. “Our reinforcements will help Texas to add additional barriers, including razor wire along the border. We don’t have a country if we don’t have a border.”

During his first week in office, Biden signed a flurry of executive orders repealing former President Donald Trump’s immigration restrictions. Illegal crossings have surged as a result, with a record 302,000 people caught crossing the 2,000-mile border in December, and more than 10 million entering the US since 2021. Under Biden’s policy of ‘catch and release’, apprehended migrants are immediately released into the US, with orders to show up at immigration hearings years in the future. Texas – which shares more than 1,200 miles of border with Mexico – deployed national guardsmen to the border in 2021 and began constructing razor wire obstacles at popular crossing points. The Biden administration responded by suing the state, and the Supreme Court ruled last month that federal agents could access the border to remove the razor wire. Texas Governor Greg Abbott vowed to defy the ruling and install more wire, arguing that the Biden administration has neglected the constitutional obligation to enforce federal immigration law, and that his duty to protect his constituents supersedes any federal laws.

Although the Department of Homeland Security gave Abbott three days to begin removing the obstacles late last month, a US Customs and Border Patrol official told Fox News that the agency had “no plans” to move in and destroy the barriers after Abbott ignored the deadline. Some 25 Republican governors issued a joint statement of solidarity with Abbott last week, accusing Biden of “illegally allowing mass parole across America of migrants who entered our country illegally.” Florida has been sending law enforcement officers and soldiers to assist Texas since 2021. National Guard troops have built obstacles and observation posts, while Florida Highway Patrol officers have apprehended almost 150,000 illegal aliens and charged 2,102 people with smuggling or human trafficking charges, DeSantis’ office said.

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“..relocate not only low-skilled component production but also, to a lesser extent, high-skilled production processes..”

Germany’s Economy Is Dying. Here’s Why And What Happens Next (RM)

German Finance Minister Christian Lindner, injecting some humor at the recent World Economic Forum in Davos, stated that Germany is not the “sick man” of Europe but rather “a tired man,” following the recent years of crisis, in need of a “good cup of coffee.” However, the economic indicators point to something more than fatigue. Although Germany could be described as merely being in a mild recession – the GDP readings, after all, can hardly be called awful – in reality the economy finds itself in the uneasy place of having no clear prospects for an imminent recovery. Initial estimates suggest a 0.3% decline in GDP in 2023, positioning Germany as the only major industrialized nation in the red. Germany’s national debt saw an increase of about €48 billion, reaching almost €2.6 trillion. While this may appear alarming at first glance, it’s crucial to consider the broader economic context. Germany’s debt-to-GDP ratio, standing at approximately 65%, is relatively favorable compared to many Western countries.

Moreover, Germany has implemented strict limits on deficits, demonstrating a commitment to financial prudence. In light of these measures, there is a counterargument that Germany could potentially consider taking on more debt. Sentiment among businesses deteriorated further at the beginning of the year, as illustrated by the ifo Business Climate Index in January, which fell to 85.2 points. Both the current situation and expectations for the coming months were evaluated more pessimistically. The ifo Institute has reduced its growth forecast for 2024 to 0.7%, compared to the previously predicted 0.9%. This downgrade is partially attributable to additional cuts in the federal budget, which became necessary due to a ruling by the Federal Constitutional Court that prohibited leftover Covid-stimulus funds from being repurposed.

The German economy is on the brink of a crisis as deindustrialization firmly takes root. Companies, driven by economic considerations, are increasingly relocating their production overseas, posing a significant threat to a nation heavily reliant on industrial output. This trend has immediate and profound consequences that extend beyond the evident impact on industrial sectors. The offshoring of production could entail a surge in layoffs, further aggravating the economic challenges faced by the workforce. In November 2023, according to preliminary data from the Federal Statistical Office (Destatis), German exports experienced a decline of 5.0% year-on-year, while imports recorded a notable decrease of 12.2%.

While the primary focus is on the industrial landscape, it is crucial to acknowledge the interconnectedness of these shifts. A case in point is the German chemical industry, which finds itself in a deep and prolonged downturn, having lost approximately 23% of its production capacity. Furthermore, leading managers have expressed considerable skepticism about a swift recovery. The challenges are exacerbated by Germany’s struggle with high energy costs, particularly affecting industries engaged in global competition. Despite government attempts to counteract these challenges, such as a billion-dollar electricity price package, success has been limited.

Meanwhile, according to a report by Deloitte, an alarming two out of three German companies have partially relocated their operations abroad due to the country’s ongoing energy crisis. This trend is particularly pronounced in critical sectors, such as mechanical engineering, industrial goods, and automotive industries, where 69% of companies have relocated their operations to a moderate or large extent. Key findings from the Deloitte report shed light on the reasons behind this significant shift. Most businesses attribute their decisions to move operations overseas to the combination of high energy prices and inflation. Notably, companies in these industries are planning to relocate not only low-skilled component production but also, to a lesser extent, high-skilled production processes.

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No, I’m not surprised.

F-35 Jet Fails to Meet Basic Operating Standards in 65 Areas (Sp.)

The Lockheed Martin F-35 Joint Strike Fighter still suffers at least 65 basic deficiencies where it continues to fail to meet basic testing specifications, the Office of the Director, Operational Test and Evaluation (DOT&E) said in a report. The JPO [F-35 Joint Project Office] completed the readiness review for JSE [joint simulation environment] trials in September 2023, and certified it as ready for testing, despite 65 deficiencies against the baseline JSE requirements, the report said on Friday. The F-35 program development cycle continues to experience delays due to immature and deficient Block 4 mission systems software and avionics stability problems with the new Technology Refresh 3 (TR-3) hardware going into Lot 15 production aircraft, the report said.

“As a result, deliveries of production Lot 15 aircraft in the TR-3 configuration are on hold until more testing can be completed and the avionics issues resolved. …[T]hese delays prevented the F-35 JPO from adequately planning and programming for hardware modifications … of the upgraded hardware configuration,” the report said. Also, the necessary flight test instrumentation, including both aircraft and open-air battle shaping instrumentation, for both, the remaining TR-2 configuration and upgraded TR-3 aircraft, are not all on contract and will not be available in time, the report added.

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Just yesterday, we saw plummeting birth rates everywhere.

India Vows To Tackle Population Growth Challenges (RT)

The most populous country in the world will constitute a high-powered committee to consider the challenges arising from “fast population growth and demographic changes.” The move was announced as part of India’s interim budget, unveiled on Thursday, ahead of national elections later this year. India’s finance minister, Nirmala Sitharaman, revealed that the proposed committee will address population-related challenges and form recommendations for the government. The initiative, she stressed, comes as part of the vision of Narendra Modi’s government, which hopes to transform the country into a developed nation by 2047. This development comes against the backdrop of a legislative move to adopt laws to control the population.

Members of Parliament belonging to the ruling Bharatiya Janata Party (BJP), Rajendra Agrawal and Rakesh Sinha, had earlier introduced separate bills to regulate the country’s population. However, neither of them have passed. Meanwhile, the country’s new census has been delayed for several years. The most recent demographic data available comes from the 2011 census. Although top Indian officials have expressed concern over the population boom, the fifth round of India’s National Family Health Survey (NFHS-5) released in 2022 showed that female fertility levels have dipped below the replacement fertility level in all but five Indian states. Despite that, last year, India overtook China to become the most populous nation in the world, as per United Nations (UN) data.

India has the highest number of young people in the world; however, the UN, in a 2023 report, noted that by 2046, the number of older adults in the country will be greater than the number of children younger than 15 years old. In 2022, the median age in India was believed to be 28 years; this is in sharp contrast to other larger nations with significantly higher median ages. An aging population could mean severe economic trouble for India unless the country grows its national wealth rapidly in the coming decades, an analysis in The Hindu newspaper observed last year. In December, India’s Reserve Bank updated the GDP growth projection for the current financial year to 7% compared to the previously estimated 6.5%. Meanwhile, India remains among the top countries with high income and wealth inequality even as the share of the population living in multidimensional poverty fell from 25 to 15% between 2015-16 and 2019-21, the UNDP said in a report last year.

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“..CEOs crowing about keeping their prices high while their costs go down..”

It’s Not ‘Inflation’ – We’re Just Getting Ripped Off. Here’s Proof. (OW)

Many Americans are still experiencing the sticker shock they first faced two years ago when inflation hit its peak. But if inflation is down now, why are families still feeling the pinch? The answer lies in corporate profits — and we have the data to prove it. Our new report for the Groundwork Collaborative finds that corporate profits accounted for more than half — 53 percent — of inflation from April to September 2023. That’s an astronomical percentage. Corporate profits drove just 11 percent of price growth in the four decades prior to the pandemic. Businesses have been quick to blame rising costs on supply chain shocks from the pandemic and the war in Ukraine. But two years later, our economy has mostly returned to normal. In some cases, companies’ costs to make things and stock shelves have actually decreased.

Let’s demonstrate with one glaring example: diapers. The hyper-consolidated diaper industry is dominated by just two companies, Procter & Gamble and Kimberly-Clark, which own well-known diaper brands like Pampers, Huggies, and Luvs. The cost of wood pulp, a key ingredient for making diapers absorbent, did spike during the pandemic, increasing by more than 50 percent between 2020 and 2021. But last year it declined by 25 percent. Did that drop in costs lead Procter & Gamble and Kimberly-Clark to lower their prices? Far from it. Diaper prices have increased to nearly $22 on average. These corporate giants have no plans to bring prices down anytime soon. In fact, their own executives are openly bragging about how they’re going to “expand margins” on earnings calls. Procter & Gamble predicted $800 million in windfall profits as input costs decline. Kimberly-Clark’s CEO said the company has “a lot of opportunity” to expand margins over time.

It’s not just diapers — while many corporations were quick to pass along rising costs, they’ve been in no hurry to pass along their savings. A recent survey from the Richmond Fed and Duke University revealed that 60 percent of companies plan to hike prices this year by more than they did before the pandemic, even though their costs have moderated. Corporations across industries, from housing to groceries and used cars, are juicing their profit margins even as the cost of doing business goes down. And they’re not hiding the ball. Since the summer of 2021, Groundwork began listening in on hundreds of corporate earnings calls where we heard CEO after CEO boasting about their ability to raise prices on consumers. Now we hear something slightly different: CEOs crowing about keeping their prices high while their costs go down.

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This is what the Dems have in mind for Trump.

Imran Khan Sentenced To Third Prison Term In A Week (RT)

Former Pakistani prime minister Imran Khan and his wife Bushra Bibi have been sentenced to seven years in prison and fined after a court declared their marriage unlawful on Saturday. It was the third ruling against Khan this week. The civil court was set up in Rawalpindi prison, where the ex-PM has been held since August last year on more than 100 charges. The sentences came before a parliamentary election on February 8 that Khan, who remains popular among voters, is barred from contesting. On Wednesday, Khan along with his wife were sentenced to 14-year terms for illegally selling state gifts, and the day before Khan was given ten years in prison for leaking state secrets. He claimed the cable he released contained evidence of collusion between the Pakistani military and US officials to have him removed from power in April 2022.

Khan’s representatives say he will appeal all three cases. The sentences add up to 34 years and will be served concurrently. The marriage case was filed by Bushra Bibi’s former husband Khawar Maneka, who claimed that she did not observe “iddat” – a mandatory three-month waiting period that a woman must abide by under Islamic law after the death of her husband or a divorce, before marrying another man. The Khans have denied wrongdoing. Imran Khan, however, argued that the case was brought to “humiliate and disgrace” him and his wife. “This marks the first instance in history where a case related to iddat has been initiated,” he told reporters.

The court decision has been condemned by members of Khan’s party, Pakistan Tehreek-e-Insaf (PTI). Syed Zulfiqar Bukhari, a PTI official, called the marriage case “fake”, saying the judgements against Khan represent a “mockery of the law.” “The way these trials are being conducted leaves a huge question mark on the February 8 elections. This is a test case for Pakistan’s higher judiciary,” he told Al Jazeera. PTI President Gohar Ali Khan described the trial as “shameful” and vowed to appeal the verdict in a higher court.

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Bohemian grove

 

 

Giraffe lion

 

 

Branch
https://twitter.com/i/status/1753863250427715898

 

 

Freeman

 

 

Peggy Sue

 

 

 

 

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Jul 182019
 


Mathew Brady Abe Lincoln 1864

 

Showdown With Trump Looms As House Votes To Block Arms Sale To Saudi Arabia (AP)
House Votes Down Democrat’s Bid To Impeach Trump Over Recent Tweets (AP)
Feds End Investigation Into Trump Org And Hush Money Payments (CNN)
Foreign Purchases Of US Homes Plunge 36%, Chinese Flee The Market (CNBC)
New Zealand’s Armour-Plated Housing Bubble (Hickey)
Extraordinary Collapse In Home Ownership In Sydney And Melbourne (SMH)
Paradigm Shifts (Ray Dalio)
Ray Dalio Says Gold Top Investment During Upcoming ‘Paradigm Shift’ (CNBC)
US Removes Turkey From F-35 Program After S-400 Purchase From Russia (R.)
Chelsea Manning’s Daily Fines for Grand Jury Resistance Increase to $1000 (SP)

 

 

It’s showdowns all the way down. It would be good if they can do this one with a bit more smart. But they’re losing everything so far, so no high hopes. Of course it’s beyond gross to be chanting “send her home” at a rally. But he’s winning it all and they are not. The Democrats need a plan, they need brains, they need to organize.

Showdown With Trump Looms As House Votes To Block Arms Sale To Saudi Arabia (AP)

Congress is heading for a showdown with President Donald Trump after the House voted to block his administration from selling weapons and aircraft maintenance support to Saudi Arabia. The Democratic-led House on Wednesday passed the first of three resolutions of disapproval, 238-190, with votes on the others to immediately follow. Trump has actively courted an alliance with Riyadh and has pledged to veto the resolutions. The Senate cleared the measures last month, although by margins well short of making them veto proof. Overturning a president’s veto requires a two-thirds majority. The arms package is worth an estimated $8.1 billion and includes precision guided munitions, other bombs, ammunition, and aircraft maintenance support.

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Very predictable and therefore very stupid. It’s no time to start fights you can’t possibly win.

House Votes Down Democrat’s Bid To Impeach Trump Over Recent Tweets (AP)

The House easily killed a maverick Democrat’s effort Wednesday to impeach President Donald Trump for his recent racial insults against lawmakers of color, in a vote that provided an early snapshot of just how divided Democrats are over trying to oust him in the shadow of the 2020 elections. Democrats leaned against the resolution by Texas Rep. Al Green by about a 3-2 margin as the chamber killed the measure 332-95. The vote showed that so far, House Speaker Nancy Pelosi has been successful in her effort to prevent a Democratic stampede toward impeachment before additional evidence is developed that could win over a public that has so far been skeptical about ousting Trump.

Even so, the numbers also showed that the number of Democrats open to impeachment remains substantial. About two dozen more conversions would split the party’s caucus in half over an issue that could potentially dominate next year’s presidential and congressional campaigns. “There’s a lot of grief, from a lot of different quarters,” Green, speaking to reporters after the vote, said of the reaction he’s received from colleagues. “But sometimes you just have to take a stand.” Every voting Republican favored derailing Green’s measure.

Pelosi and other party leaders considered his resolution a premature exercise that needlessly forced vulnerable swing-district lawmakers to cast a perilous and divisive vote. It also risked deepening Democrats’ already raw rift over impeachment, dozens of the party’s most liberal lawmakers itching to oust Trump. Recent polling has shown solid majorities oppose impeachment. Even if the Democratic-run House would vote to impeach Trump, the equivalent of filing formal charges, a trial by the Republican-led Senate would all but certainly acquit him, keeping him in office.

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And here’s another loss. It doesn’t stop.

Feds End Investigation Into Trump Org And Hush Money Payments (CNN)

Federal prosecutors in New York have ended their investigation into the Trump Organization’s role in hush money payments made to women who alleged affairs with President Donald Trump and have been ordered by a judge to release additional information connected to their related probe of former Trump lawyer Michael Cohen, according to court documents filed Wednesday. CNN reported Friday that the Manhattan US Attorney’s office had approached the end of its investigation of the Trump Organization and wasn’t poised to charge any executives involved in the company’s effort to reimburse Cohen for money he paid to silence one of the women. That payment constituted an illegal campaign contribution, according to prosecutors. Trump has denied the affair allegations.

“The campaign finance violations discussed in the Materials are a matter of national importance,” US District Court Judge William Pauley wrote in his decision. “Now that the Government’s investigation into those violations has concluded, it is time that every American has an opportunity to scrutinize the Materials.” Pauley ordered a copy of the government’s July status report and copies of search warrant materials from the Cohen case to be filed publicly with very limited redactions by Thursday at 11 a.m. ET. The conclusion of federal prosecutors’ investigation of the Trump company’s role in the Cohen matter marks a significant victory for the President’s family business, although it likely doesn’t come as a complete surprise.

There had been no contact between the Manhattan US Attorney’s office and officials at the Trump Organization in more than five months, CNN reported Friday. A lawyer for Trump, Jay Sekulow, said: “We are pleased that the investigation surrounding these ridiculous campaign finance allegations is now closed. We have maintained from the outset that the President never engaged in any campaign finance violation.”

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I see many Chinese tourists here in Athens. And often think Beijing can’t let that trend continue, because these people can’t pay for their trips in yuan. But yes, it’s easier to start with halting the outflow of larger amounts.

Foreign Purchases Of US Homes Plunge 36%, Chinese Flee The Market (CNBC)

Challenging conditions in the U.S. housing market, along with tighter currency controls by the Chinese government, caused a stunning drop in foreign demand for American homes. The dollar volume of homes purchased by foreign buyers from April 2018 through March 2019 dropped 36% from the previous year, according to the National Association of Realtors. The decline was due to a drop in the number and average price of purchases. Foreigners bought 183,100 properties with a total value of about $77.9 billion, down from 266,800 valued at $121 billion in the previous period. They paid a median price of $280,600, which is higher than the median for all existing homebuyers ($259,600), but it was down from $290,400 the previous year.


“A confluence of many factors — slower economic growth abroad, tighter capital controls in China, a stronger U.S. dollar and a low inventory of homes for sale — contributed to the pullback of foreign buyers,” said Lawrence Yun, NAR’s chief economist. “However, the magnitude of the decline is quite striking, implying less confidence in owning a property in the U.S.” The Chinese were the leading buyers for the seventh consecutive year, purchasing an estimated $13.4 billion worth of residential property. Yet that was a 56% decline from the previous 12 months and comparatively the biggest percentage drop of all foreign buyers. Chinese economic growth slowed to 6.3% in 2019 compared with 6.9% in 2017, when the previous buyer survey began. The Chinese government also tightened its grip on the outflow of cash to purchase foreign property.

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New Zealand housing, like Australia and Vancouver, depends on the Chinese too.

New Zealand’s Armour-Plated Housing Bubble (Hickey)

New Zealanders usually welcome the praise when overseas authorities describe us as the best in the world. This time, not so much. In the past fortnight, global economic news authorities The Economist and Bloomberg Economics have both declared New Zealand houses to be vastly over-valued relative to both rents and incomes. They describe New Zealand as in bubble territory similar to those seen in other countries before the Global Financial Crisis and vulnerable to the sort of 30-40 percent price crash seen in the likes of Ireland and parts of the US through 2007 to 2010. The Economist’s long-running Global House Price Index was refreshed on June 27 with March quarter data for most countries and showed New Zealand top of the pops when it came to over-valuation relative to incomes and second most over-valued relative to rents behind Canada.

It found New Zealand prices in the December quarter of 2018 to be 57 percent over-valued relative to rents, just above Australia’s 42 percent overvalued in the March quarter. New Zealand was 113 percent over-valued relative to rents, just behind Canada’s 120 percent, The Economist found. New Zealand prices have more than trebled since 1990, while British and American prices are still less than double what they were 30 years ago. “On this basis, house prices appear to be on an unsustainable path in Australia, Canada and New Zealand,” The Economist wrote. “Ten years ago they reached similarly dizzying heights against rents and incomes in Spain, Ireland and some American cities, only to endure a brutal collapse,” it concluded.

[..] New Zealand’s housing market is now worth NZ$1.13 trillion, which is up by more than $1 trillion from NZ$123 billion in 1990. The increase is more than triple because there are more houses with more extras (decks/garages/rooms) added on. That’s $1 trillion in untaxed capital gains, which at the top marginal rate would have generated extra tax revenues of $330 billion, or enough to build nearly 700,000 new state houses or fund the next 14 years of New Zealand Superannuation payments. Our housing market is worth 3.9 times our GDP and more than 7.2 times the value of our stock market. For comparison sake, Australia’s housing market is worth A$6.6 trillion or 3.5 times Australia’s GDP and 3.3 times the value of its stock market. America’s housing market is worth US$33.3 trillion or 1.6 times US GDP and 1.5 times the value of the US stock market.

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Governments like bubbles.

Extraordinary Collapse In Home Ownership In Sydney And Melbourne (SMH)

The number of people owning their home outright has collapsed by a third as house prices have soared four-fold over the past two decades, leaving a growing number of older Australians shackled to mortgages as they head into retirement. In the mid-1990s, almost 44 per cent of people in NSW owned their home outright, but according to the Australian Bureau of Statistics this has now fallen to just 29.7 per cent. At the same time, the proportion of people in NSW with a mortgage has jumped by more than 30 per cent, with many of those heading towards their retirement years. The swing from ownership to mortgage has occurred over the past 20 years as the median house price in Sydney lifted by 460 per cent, even taking into account the recent market softening.

It’s a similar story in Victoria, where in the mid-1990s more than 45 per cent of people were mortgage-free, but now that figure has fallen to just 31 per cent. Victorians are among the most exposed to changing interest rates, with more than 37 per cent of people holding a mortgage. Two decades ago less than 30 per cent held a housing debt with their bank. Over the same period, the median house price in Melbourne has soared from $126,131 to $806,000. The Northern Territory has the smallest proportion of people who own their home outright, at just 17 per cent. Among the states, just 27 per cent of residents in Queensland and Western Australia enjoy life without a mortgage or rental payments.

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Dalio channels Minsky: stability leads to instability. He must be aware of that.

Paradigm Shifts (Ray Dalio)

There are always big unsustainable forces that drive the paradigm. They go on long enough for people to believe that they will never end even though they obviously must end. A classic one of those is an unsustainable rate of debt growth that supports the buying of investment assets; it drives asset prices up, which leads people to believe that borrowing and buying those investment assets is a good thing to do. But it can’t go on forever because the entities borrowing and buying those assets will run out of borrowing capacity while the debt service costs rise relative to their incomes by amounts that squeeze their cash flows. When these things happen, there is a paradigm shift.

Debtors get squeezed and credit problems emerge, so there is a retrenchment of lending and spending on goods, services, and investment assets so they go down in a self-reinforcing dynamic that looks more opposite than similar to the prior paradigm. This continues until it’s also overdone, which reverses in a certain way that I won’t digress into but is explained in my book Principles for Navigating Big Debt Crises [..] Another classic example that comes to mind is that extended periods of low volatility tend to lead to high volatility because people adapt to that low volatility, which leads them to do things (like borrow more money than they would borrow if volatility was greater) that expose them to more volatility, which prompts a self-reinforcing pickup in volatility.

There are many classic examples like this that repeat over time that I won’t get into now. Still, I want to emphasize that understanding which types of paradigms exist and how they might shift is required to consistently invest well. That is because any single approach to investing—e.g., investing in any asset class, investing via any investment style (such as value, growth, distressed), investing in anything—will experience a time when it performs so terribly that it can ruin you.

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Think he means that for pension funds as well?

Ray Dalio Says Gold Top Investment During Upcoming ‘Paradigm Shift’ (CNBC)

Hedge fund kingpin Ray Dalio is seeing a case for gold as central banks get more aggressive with policies that devalue currencies and are about to cause a “paradigm shift” in investing. Dalio, founder of the world’s largest hedge fund, wrote in a LinkedIn post that investors have been pushed into stocks and other assets that have equity-like returns. As a result, too many people are holding these types of securities and likely to face diminishing returns. “I think these are unlikely to be good real returning investments and that those that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold,” the Bridgewater Associates leader said.

“Additionally, for reasons I will explain in the near future, most investors are underweighted in such assets, meaning that if they just wanted to have a better balanced portfolio to reduce risk, they would have more of this sort of asset. For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio. I will soon send out an explanation of why I believe that gold is an effective portfolio diversifier.” [..] Dalio’s call comes two weeks before the Federal Reserve is expected to cut its benchmark interest rate by at least a quarter point. That move comes after a three-year cycle of raising rates from the historically accommodative near-zero levels implemented during the financial crisis.

The fresh trends are part of what he labeled a new “paradigm shift” that comes after the last one during the crisis. Investors, Dalio said, are going to need to change their mindset about what will work after the longest bull market run in Wall Street history. “In paradigm shifts, most people get caught overextended doing something overly popular and get really hurt,” he wrote. “On the other hand, if you’re astute enough to understand these shifts, you can navigate them well or at least protect yourself against them.”

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“Turkey makes more than 900 parts of the F-35..”

US Removes Turkey From F-35 Program After S-400 Purchase From Russia (R.)

The United States said on Wednesday that it was removing Turkey from the F-35 fighter jet program, a move long threatened and expected after Ankara began accepting delivery of an advanced Russian missile defense system last week. The first parts of the S-400 air defense system were flown to the Murted military air base northwest of Ankara on Friday, sealing NATO ally Turkey’s deal with Russia, which Washington had struggled for months to prevent. “The U.S. and other F-35 partners are aligned in this decision to suspend Turkey from the program and initiate the process to formally remove Turkey from the program,” Ellen Lord, the undersecretary of defense for acquisition and sustainment, told a briefing.

Turkey’s foreign ministry said the move was unfair and could affect relations between the two countries. Lord said moving the supply chain for the advanced fighter jet would cost the United States between $500 million and $600 million in non-recurring engineering costs. Turkey makes more than 900 parts of the F-35, she said, adding the supply chain would transition from Turkish to mainly U.S. factories as Turkish suppliers are removed. “Turkey will certainly and regrettably lose jobs and future economic opportunities from this decision,” Lord said. “It will no longer receive more than $9 billion in projected work share related to the F-35 over the life of the program.”

The F-35 stealth fighter jet, the most advanced aircraft in the U.S. arsenal, is used by NATO and other U.S. allies. Washington is concerned that deploying the S-400 with the F-35 would allow Russia to gain too much inside information about the aircraft’s stealth system. “The F-35 cannot coexist with a Russian intelligence collection platform that will be used to learn about its advanced capabilities,” the White House said in a statement earlier on Wednesday.

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One of my greatest heroes. She does what Muhammad Ali did.

Chelsea Manning’s Daily Fines for Grand Jury Resistance Increase to $1000 (SP)

Daily fines against Chelsea Manning for resisting a grand jury investigating WikiLeaks increased to $1000 on July 16. On May 16, Judge Anthony Trenga held Manning in civil contempt and ordered her to be sent back to the William G. Truesdale Adult Detention Center in Alexandria. The court also imposed a fine of $500 per day after 30 days, and then a fine of $1000 per day after 60 days. From June 16 to July 15, the court fined her $500/day. Those fines total $15,000. If Manning “persists in her refusal” for the next 15 months or until the grand jury’s term ends, her legal team says she will face a total amount of fines that is over $440,000. This excessive amount may violate her Eighth Amendment rights under the Constitution.


In May, Manning’s attorneys filed a motion challenging the harshness of the fines. The federal court has yet to rule on the motion or hold a hearing. The motion asserted there is no “appropriate coercive sanction” because Manning will never testify. She should be released from jail and relieved of all fines. “Ms. Manning has publicly articulated the moral basis for her refusal to comply with the grand jury subpoena, in statements to the press, in open court, and most recently, in a letter addressed to this court,” her attorneys stated. “She is suffering physically and psychologically, and is at the time of this writing in the process of losing her home as a result of her present confinement.”

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Nov 152018
 
 November 15, 2018  Posted by at 10:17 am Finance Tagged with: , , , , , , , , , , ,  7 Responses »


Jean-Francois Millet In the Auvergne 1869

 

UK Brexit Secretary Dominic Raab resigns (BBC)
Final Say Referendum On Table As May Blows Debate Wide Open (Ind.)
Brexit: A Split Cabinet, A Split Party And A Split Nation (G.)
Theresa May’s Brexit Deal Solves Nothing: Open Warfare Is About To Begin (G.)
The Race To 6% Mortgage Rates (WS)
The Fed Will Continue Tightening Until Everything Breaks (Smith)
Amazon’s Long Game Is Clearer Than Ever (Taibbi)
Amazon’s Alexa Might Be A Key Witness In A Murder Case (Vox)
Lockheed Martin Awarded $22.7 Billion Pentagon Fighter Jet Contract (AFP)
Japan Cyber Security Minister Admits He Has Never Used A Computer (AFP)

 

 

UPDATE: Half an hour after I posted this Debt Rattle, two more ministers have evidently resigned: Esther McVey and Suella Braverman. That makes 4 so far today who have left the May government, and 22(!) over the past 2 years.

 

Inevitably, a lot of Brexit stuff today. Somewhat curiously, Mr. Raab ostensibly negotiated the deal May presented yesterday, and because of which he resigned this morning. He won’t be the last. He wasn’t the first either, junior Northern Ireland minister Shailesh Vara was ahead of him.

Meanwhile, May faces Parliament today and the EU has announced a meeting on November 25 to secure the deal. But who will represent the UK there? Because as prominent Tory Anna Soubry said: “Raab’s resignation marks the end of PMs Withdrawal Agreement. This is v serious the PM will clearly be considering her position.”.

UK Brexit Secretary Dominic Raab resigns (BBC)

Brexit Secretary Dominic Raab has resigned saying he “cannot in good conscience support” the UK’s draft Brexit agreement with the EU. Theresa May announced on Wednesday evening that she had secured the backing of her cabinet for the agreement, after a five hour meeting. But several ministers were understood to have spoken against it. And there are suggestions of moves among Conservative backbenchers to force a no-confidence vote in her. Mr Raab – a Leave supporter who was promoted to the cabinet to replace David Davis when he quit in protest at Mrs May’s Brexit plans – is among a group of senior ministers thought to be unhappy with the agreement.

He was closely involved in drafting the agreement, which sets out the terms of Britain’s departure from the EU. In his resignation letter, Mr Raab said he could not support it because the regulatory regime proposed for Northern Ireland “presents a very real threat to the integrity of the United Kingdom”. And, he added, the “backstop” arrangements aimed at preventing the return of a hard Irish border would result in the EU “holding a veto over our ability to exit”. “Above all, I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election,” he told the prime minister.

The BBC’s Norman Smith said Mr Raab’s departure puts pressure on other cabinet members to quit, raising the prospect of a “domino effect” that could end in the break-up of the cabinet. Remain-backing Conservative MP Anna Soubry tweeted: “Raab’s resignation marks the end of PMs Withdrawal Agreement. This is v serious the PM will clearly be considering her position. My own view is that we need a Govt of National Unity and we need it now.” Earlier on Thursday, Shailesh Vara quit as minister of state for Northern Ireland, saying he cannot support Mrs May’s agreement, which he said “leaves the UK in a halfway house with no time limit on when we will finally be a sovereign nation”.

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But this may turn out to be the main takeaway from May’s deal: opening up the option of a second vote.

Final Say Referendum On Table As May Blows Debate Wide Open (Ind.)

Theresa May has admitted Brexit can be stopped, with her senior officials accepting a new referendum on Britain’s departure from the EU is possible. The unprecedented admission from the top of government came as the prime minister revealed her cabinet had begrudgingly backed the draft Brexit deal struck by negotiators earlier this week. But speaking outside Downing Street, she issued a stark warning to Tory rebels that threats to tear down the proposals and her leadership could mean there is “no Brexit at all”. There are widespread claims that angry backbenchers are preparing to launch a bid to topple the prime minister within days, while speculation that cabinet ministers could still quit is rife.

Eurosceptics are likely to be further enraged by a clause in the 585-page draft deal allowing an unspecified extension to the Brexit transition – with the text simply saying it could run until “20XX”. Ms May emerged from the black door of No 10 to confirm tentative cabinet support following an intense five-hour cabinet meeting, at which almost 30 of her top ministers spoke. In a short statement she targeted a warning directly at those intent on bringing the deal down, saying: “When you strip away the detail, the choice before us is clear.

“This deal, which delivers on the vote of the referendum, which brings back control of our money, laws and borders, ends free movement, protects jobs, security and our union – or leave with no deal, or no Brexit at all.” Asked later how the PM felt there could be ‘no Brexit’, her spokesman said: “You should see that through the prism of parliament, in that the main opposition party has actively said that Brexit can be stopped, there is a People’s Vote movement which we have set out our opposition to, and any other number of important votes that will have to occur between now and the 29th of March.” It is the first time Downing Street has so clearly stated not only that Brexit is not a foregone conclusion, but that a new vote is possible.

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At what point can we label this “chaos”?

Brexit: A Split Cabinet, A Split Party And A Split Nation (G.)

Theresa May will launch a high-stakes battle to sell her Brexit deal to parliament on Thursday, after clinching the support of her deeply-divided cabinet during a fraught five-hour meeting in Downing Street. Emerging from No 10 on Wednesday night, May said she believed “with my head and my heart” that her deal was the best one for the UK – and the only alternatives were no deal, or no Brexit. She said her ministers had taken a “collective” decision, to press ahead with finalising the deal in Brussels, which she will then have to bring back to parliament for approval; but it was clear there had been significant dissent. There were a series of dissenting voices from Brexit supporting ministers, as the meeting overran its intended length by two hours.

One Whitehall source said the environment secretary, Michael Gove, had been the only leaver to speak in favour. “This is a decision that was not taken lightly, but I believe it is firmly in the national interest,” May said, adding that cabinet had held “a long, detailed and impassioned debate”. Cabinet sources said Esther McVey, the work and pensions secretary, made the most impassioned interventions against the draft agreement and warned of chaos should the government lose a meaningful vote in parliament. May twice refused a request from McVey to hold a vote in the room. One cabinet source said that McVey was “shouted down” by the cabinet secretary, Sir Mark Sedwill.

Liz Truss, the chief secretary to the Treasury, said they were “caught between the devil and the deep blue sea”. Up to 11 cabinet ministers were said to have spoken out against the deal. Supportive voices came from the communities secretary, James Brokenshire, and the education secretary, Damian Hinds. [..] The documents confirmed one key concession that has enraged Brexiters: the UK will not be able to unilaterally exit the Irish backstop. Instead that decision would rest with a joint, independent arbitration committee with an equal number of British and EU representatives, as well as outside members. The EU and the UK “decide jointly within the joint committee that [the backstop] … is no longer necessary,” the draft agreement said.

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“..May said that her deal would give us back “control of our money, laws and borders”, while protecting business and jobs. None of that is true. ”

Theresa May’s Brexit Deal Solves Nothing: Open Warfare Is About To Begin (G.)

Now the arm-twisting, the bribery and the for-the-good-of-the-country cajoling of every last MP begins in earnest. Pinned to the wall, each must finally reveal their true colours; some will be principled, some not: Tories must reckon if the future is with Theresa May and her deal, or with Brextremists in their constituencies. Any Labour would-be defector must reckon whether their local party could ever forgive them for voting to keep this government in power. Meanwhile, Brexit mis-selling continues unabated. In her statement this evening, May said that her deal would give us back “control of our money, laws and borders”, while protecting business and jobs. None of that is true. Nowhere is there any evidence to be found in the lengthy withdrawal deal.

For the foreseeable, we are in a customs union we cannot leave without EU permission and our borders are open to EU citizens. We are paying £39bn, business has no certainty for future investment and as for jobs – well, let’s just cross our fingers and hope. May pretends that some distant sunlit trade deal, hazily sketched, will one day emerge from the political declaration that accompanies the deal. Will it be in two years, 10 years, sometime, never? No one knows. All the devilish dilemmas remain. All the impossibilities are as impossible as they were on referendum day – but now they are solemnly written down on paper.

We can’t have frictionless EU trade without a customs union, but that stops us buccaneering the globe for those exclusive deals with Mauritania or wherever else Liam Fox chooses to turn to. Ireland stands where it did: preserving an open border, made possible by the Good Friday agreement, means the UK must stay close to the EU forever. Scotland is righteously rebelling: David Mundell, with his crucial 13 Scottish Tory votes in parliament, will not countenance continued EU rights to fish in our waters; Scotland’s first minister, Nicola Sturgeon, protests at Scotland being denied Northern Ireland’s competitive advantage of effectively staying in the single market – a special status the DUP also objects to. Today takes us closer to fracturing the union.

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Your guess is as good as the IMF’s. Contact your local bookmaker.

IMF Says No-Deal Brexit To Cause 8% Hit To UK Economy (Ind.)

The UK economy could face a long-run hit of up to 8 per cent of GDP in the event of a no-deal Brexit, the International Monetary Fund has warned. That’s the equivalent of around £6,000 per British household. “A scenario in which future trade between the UK and the EU is governed by [World Trade Organisation] rules is estimated to bring about output losses of around 5 to 8 percent compared to a no-Brexit scenario in the long run (with an average of about 6 per cent),” the IMF said. However its economists also warned that this assumed a smooth transition to WTO rules and that the impact of a chaotic no-deal Brexit in the short-term next March could be more severe, leading to a “sharp fall in asset prices”, a “hit to consumer and business confidence” and another sterling depreciation.

“Directors emphasised the importance of a timely agreement with the EU, accompanied by an implementation period to avoid a cliff-edge exit in March 2019 and to allow firms and workers time to adjust to the new relationship”. Delivering its full annual health check on the UK on Wednesday, the Washington-based Fund also said that the British economy would be around 3 per cent weaker even if it successfully secured a “Canada-style” free trade deal with the rest of the European Union “due to lower trade, migration and productivity”.

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6% is very low historically, and lethal today.

The Race To 6% Mortgage Rates (WS)

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) and a 20% down-payment rose to 5.17% for the latest reporting week, according to the Mortgage Bankers Association (MBA) today. This is the highest average rate since September 2009 (chart via Investing.com): Many people with smaller down payments and/or lower credit ratings are already paying quite a bit more. Top-tier borrowers pay less. Thus, mortgage rates have moved a little closer to the next line in the sand, 6%, which is still historically low.

At that point, the interest rate would be back where it had been in December 2008, when the Fed was unleashing its program of interest rate repression even for long-dated maturities via QE that later included the purchase of mortgaged-backed securities (MBS), which helped push down mortgage rates further. Now the Fed is shedding Treasury securities and mortgage-backed securities, and we’re starting to see the impact on mortgage rates: The difference (spread) between the 10-year yield and the interest rate of the average 30-year fixed-rate mortgage has widened sharply.

Since the beginning of the year: The 30-year mortgage interest rate has risen 95 basis points, or nearly 1 percentage point (from 4.22% to 5.17%). The 10-year Treasury yield has risen 71 basis points (from 2.46% to 3.17%) The spread between the two has widened from 176 basis points on at the beginning of January to 200 basis points now. In other words, mortgage rates are climbing faster than the 10-year Treasury yield, now that the Fed has begun the shed mortgage-baked securities. This is expected. It’s part of the QE unwind – it’s part of the Fed exiting the mortgage market and pulling its support out from under it. But 6% is still low:

Home prices in many markets have risen far above the home prices back in 2008 and 2009, and far above even the local peaks during Housing Bubble 1 in those markets now that they have developed into a fully blooming Housing Bubble 2. Home prices as a whole averaged out across the US have surged 11.5% above the crazy peak of Housing Bubble 1:

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Good piece from Brandon Smith.

The Fed Will Continue Tightening Until Everything Breaks (Smith)

Fed propaganda asserts the lie that the bank is audited annually by the Government Accounting Office (GAO), but this is NOT an audit of Fed financial actions and policy initiatives. Rather, it is an audit of minor expenditures. Knowing how many pencils and desks the Fed purchases in a year does not help us to understand the bank’s influence over our economic security. All other audits of the Fed are done internally by the Fed’s own Board of Governors. This is hardly transparent or independent. The only time the public has gained access to even a partial government audit of Fed activities was during the audit of TARP. This alone exposed trillions of dollars in bailouts and overnight loans to various banks and corporations, many of which were foreign.

The GAO did nothing in terms of regulatory action against the Fed after it was revealed that they were funneling trillions in capital into foreign corporations. All they did was make a ledger of the transactions, and remained silent on the rest. I remind readers of this history and the conditions surrounding Fed actions because I want to drive the point home that, for now, the Fed and other central banks dictate the rules of the game. Some may say this has changed with the election of Donald Trump, but I disagree. If anything, as long as Trump is in office, the Fed will chase higher interest rates and steeper balance sheet cuts. They will not stop until markets break. And, the only solution (shutting down the Fed entirely) also comes with a set of extreme fiscal consequences.

There is a wall of cognitive dissonance when some in the public are confronted with this notion. They prefer to believe in a set of standard lies rather than accept that the Fed is a saboteur of our financial system.

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Big Tech’s ultimate power lies in their connections with US intelligence. Dangerous.

Amazon’s Long Game Is Clearer Than Ever (Taibbi)

The Washington Post seemed happy about Amazon’s decision to divide its new headquarters between New York and Crystal City, Virginia, outside of D.C., noting the amazing benefits both communities will receive by the arrival of the web-retail behemoth. The company expects to create 25,000 jobs in Northern Virginia by 2030, and generate $3.2 billion in tax revenue, in addition to investing $2.5 billion. Who better to trumpet the virtues of this job-creating, capital-investing deal than the richest person in modern history, Amazon CEO Jeff Bezos? He sounded pleased as heck to be part of all the wonderfulness.

“We are excited to build new headquarters in New York City and Northern Virginia,” Bezos told the Post — which he owns — adding: “The team did a great job selecting these sites, and we look forward to becoming an even bigger part of these communities.” Rather quickly after the “HQ2” announcement was made, MarketWatch ran a piece pointing out that moving to Northern Virginia might have other benefits for Amazon: HQ2 in the D.C. area could help Amazon snag a $10 billion Pentagon contract. Yes, the company has increased the odds that it will be awarded one of the all-time lucrative defense deals, the $10 billion Joint Enterprise Defense Infrastructure (JEDI) contract, providing cloud services and a platform for Department of Defense operations, instantly becoming one of the biggest federal contractors.

The deal has been a source of controversy for a while. In July, a pair of Republican members of Congress, Steve Womack of Arkansas and Tom Cole of Oklahoma, sent a letter to Glenn Fine, acting Inspector General of the Defense Department. In it, they claimed the contract was essentially pre-delivered to Amazon. Among other things, the JEDI award can only go to a provider that meets Defense Information Systems Agency Impact Level 6, a requirement that has to do with security/secrecy clearances. “The highest level of cloud security” is how one congressional source explained Level 6 to me. Although the lawmakers did not single out Amazon, they did say only one private provider meets that requirement, and numerous reports say that provider is Amazon Web Services.

Vanity Fair ran a piece this past summer noting other deal requirements — like a prerequisite of $2 billion in cloud revenue — ruled out all but a few competitors. “The deal appeared to be rigged in favor of a single provider,” the magazine wrote, adding that Amazon Web Services had ties to Trump Defense Secretary James Mattis. Amazon already had another recent win on the defense-contracting front with the passage of the so-called “Amazon Amendment,” which makes Amazon the go-to portal for the government’s online purchases. This was included in last year’s Defense Authorization Bill. That amendment will cover $53 billion in annual government purchases, enriching the firm even more.

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Why would anyone want one in their homes?

Amazon’s Alexa Might Be A Key Witness In A Murder Case (Vox)

Last week, a judge in New Hampshire ordered Amazon to hand over recordings of an Echo smart speaker found in the home where a double murder took place last year in Farmington. Authorities believe the recordings may provide information that could put the murderer behind bars. If Amazon does hand over the private data of its users to law enforcement, it won’t just involve the tech company in a murder case. It will also be the latest incident to raise serious questions about how much data tech companies collect about their customers with and without their knowledge, how that data can be used, and what it means for privacy.

Last January, Timothy Verrill was charged with first-degree murder by the New Hampshire attorney general in the deaths of two women, Christine Sullivan and Jenna Pellegrini. Police found the women’s bodies in the backyard of Sullivan’s boyfriend, Dean Smoronk, whom local New Hampshire media reported Verrill knew. Verrill was spotted on home surveillance video with both Sullivan and Pellegrini. He was also seen on video hours later buying cleaning supplies at a store and returning to the house. After Smoronk called 911 to report his girlfriend missing, police found the bodies and seized an Amazon Echo speaker in the kitchen, next to the spot where police believe Sullivan was killed.

According to AP, prosecutors believe the Echo might have useful information to make the case against Verrill, whose trial begins May 2019, including details about what happened during and after the murder, such as “possible removal of the body from the kitchen.” [..] While it’s entirely possible the Echo speaker will have nothing recorded that relates to the case, it also may very well have pertinent info. The speaker is initiated with four wake-up words — “Alexa”, “Echo,” “computer,” and “Amazon” — and records after hearing these words, even when it’s not being spoken to. These recordings are then stored on an Amazon server, accessible to the company, and to owners via the Alexa app.

There’s plenty of evidence that the devices record more than what Amazon says. After a woman in Portland found out that her Echo speaker had recorded a conversation she had with her husband and sent it to a random contact, Amazon admitted that its Alexa technology can misinterpret household noises like conversations, TV soundtracks, and music as wake-up calls and start recording. The speaker also starts recording a few seconds before a command is issued, meaning there’s likely more private information in the recordings than customers are aware of.

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US is preparing to sanction Turkey for not bying these boondoggles.

Lockheed Martin Awarded $22.7 Billion Pentagon Fighter Jet Contract (AFP)

The Pentagon on Wednesday announced it had awarded Lockheed Martin a $22.7 billion contract for 255 F-35 fighter jets. Of the aircraft, 106 are destined for the US military: 64 F-35As for the Air Force, 26 F-35Bs for the Marines, and 16 F-35Cs for the Navy, while the rest are destined for foreign customers, the department said in a statement. A major Pentagon supplier, Lockheed Martin will receive a $6 billion advance for the order, due to be completed in March 2023. Most of the work on the jets will be performed in the US, with some will be carried out in countries including Britain and Italy.

Launched in the early 1990s, the F-35 program is considered the most expensive weapons system in US history, with an estimated cost of some $400 billion and a goal to produce 2,500 aircraft in the coming years. Once servicing and maintenance costs for the F-35 are factored in over the aircraft’s lifespan through 2070, overall program costs are expected to rise to $1.5 trillion. According to Pentagon figures from early October, 320 F-35s have been delivered worldwide, including 245 in the US.

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Brilliant.

Japan Cyber Security Minister Admits He Has Never Used A Computer (AFP)

A Japanese minister in charge of cyber security has provoked astonishment by admitting he has never used a computer in his professional life, and appearing confused by the concept of a USB drive. Yoshitaka Sakurada, 68, is the deputy chief of the government’s cyber security strategy office and also the minister in charge of the Olympic and Paralympic Games that Tokyo will host in 2020. In parliament on Wednesday however, he admitted he doesn’t use computers. “Since the age of 25, I have instructed my employees and secretaries, so I don’t use computers myself,” he said in a response to an opposition question in a lower house session, local media reported.

He also appeared confused by the question when asked about whether USB drives were in use at Japanese nuclear facilities. His comments were met with incredulity by opposition lawmakers. “It’s unbelievable that someone who has not touched computers is responsible for cyber security policies,” said opposition lawmaker Masato Imai. And his comments provoked a firestorm online. [..] one Twitter user [..] joked that perhaps Sakurada was simply engaged in his own kind of cyber security. “If a hacker targets this Minister Sakurada, they wouldn’t be able to steal any information. Indeed it might be the strongest kind of security!”

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May 182017
 
 May 18, 2017  Posted by at 9:10 am Finance Tagged with: , , , , , , , , , ,  4 Responses »


Paul Klee Fire at Full Moon 1933

 

‘Bobby Three Sticks’ Mueller to Probe Russia-Trump imbroglio (R.)
Trump To Announce $350bn Saudi Arabia Arms Deal – One Of Largest Ever (Ind.)
America’s Reign of Terror: A Nation Reaps What It Sows (Whitehead)
Investors Supercharge Bet Amazon Will Destroy US Retail (BBG)
Fed’s Kashkari Says Don’t Use Rate Hikes To Fight Bubbles (R.)
US Banks Tighten Auto Lending as More Borrowers Fall Into Default (BBG)
Canadian Officials Say Housing Risks Are Contained (BBG)
Prosecutor To Label Deutsche Bank An International Criminal Association (BBG)
Germany Asks US For Classified Briefing On Lockheed’s F-35 Fighter (R.)
Brazil: Explosive Recordings Implicate President Michel Temer In Bribery (G.)
Get Ready For The Franco-German Revival (Pol.)
Greek Parliament Committee Finds Salary, Pension Cuts Unconstitutional (GR)
Deal On Greece Is Touch And Go (K.)
Traffickers, Smugglers Exploit Record Rise In Unaccompanied Child Refugees (G.)

 

 

The echo chamber expands. It’s ironic to see how everyone praises Mueller’s independence, yet many are sure he will be Trump’s undoing. What flack will he get when he doesn’t do what the MSM demand?

‘Bobby Three Sticks’ Mueller to Probe Russia-Trump imbroglio (R.)

Former FBI director and prosecutor Robert Mueller, known for his independence in high-profile government investigations, is taking on a new challenge in the midst of a crisis that threatens the presidency of the United States. Mueller, 72, was named on Wednesday by the Justice Department to probe alleged Russian efforts to sway November’s presidential election in favor of Donald Trump and to investigate whether there was any collusion between Trump’s campaign team and Moscow. President Trump said in a statement there was no collusion between his campaign and “any foreign entity.” Mueller is known by some as “Bobby Three Sticks” because of his full name – Robert Mueller III – a moniker that belies the formal bearing and no-nonsense style of the former Marine Corps officer who was decorated during the Vietnam War.

Democrats and Republicans alike praised his appointment and hailed his integrity and reputation. Mueller was named to the post by Deputy Attorney General Rod Rosenstein. His investigation will run in parallel to those being carried out by the FBI and the U.S. Congress. It would be difficult to fire Mueller, and past special counsel appointments have shown that the job comes with independence and autonomy. Chicago federal prosecutor Patrick Fitzgerald was appointed during the George W. Bush administration in 2003 to a similar role to investigate the leak of the identity of Valerie Plame, an undercover CIA officer whose husband had criticized Bush administration policies. Fitzgerald indicted I. Lewis “Scooter” Libby, a top aide to Vice President Dick Cheney. Bush granted Libby clemency from a prison sentence before he left office.

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If you want to protest Trump, protest this….

Trump To Announce $350bn Saudi Arabia Arms Deal – One Of Largest Ever (Ind.)

Donald Trump will use his upcoming Saudi Arabia trip to announce one of the largest arms sales deals in US history – somewhere in the neighbourhood of $98bn to $128bn worth of arms. That could add up to $350bn over ten years. The deal will be what the Washington Post said is a “cornerstone” of the proposal encouraging the Gulf states to form its own alliance like the NATO military alliance, dubbed “Arab Nato.” Nato is comprised of 28 countries including the US. Mr Trump been an outspoken critic of the organisation but after a face-to-face meeting with Nato Secretary General Jens Stollenberg, he said the alliance was “no longer obsolete.” The White House said the president will propose it as a template for an alliance that will fight terrorism and keep Iran in check.

Saudi Crown Prince Mohammed bin Salman began negotiations on this deal shortly after the 2016 US election when he sent a delegation to Trump Tower to meet with the president’s son-in-law Jared Kushner, who is serving as a senior advisor of sorts to Mr Trump. The idea of an Arab Nato is not new. There was talk in 2015 of a “response force” in Egypt, comprised of approximately 40,000 troops from Egypt, Jordan, Morocco, Saudi Arabia, Sudan, and a few other Gulf nations. The “response force” would have had a Nato-like command structure, with soldiers paid for by their own countries and the Gulf Cooperation Council made up of wealthy oil economies finance operations and management of the force.

President Barack Obama’s administration brokered more arms sales than any US administration since World War II – estimated at $200bn. They sold Saudi Arabia alone $60bn in arms, which sparked criticism by Democrats concerned with Saudi Arabia’s alleged human rights violations. Mr Trump benefits by bringing about a more “fair” deal; he has claimed several times that Nato is unfair to the US because of the amount of contributions and support provided by the US compared to countries like Germany. If Arab Nato succeeds, the White House official said the US could shift the responsibility for security to those in the region and create jobs at home through the arms sales.

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…because that Saudi arms deal is a further expansion of this long-term insanity. Military industrial complex.

America’s Reign of Terror: A Nation Reaps What It Sows (Whitehead)

Who designed the malware worm that is now wreaking havoc on tens of thousands of computers internationally by hackers demanding a king’s ransom? The US government. Who is the biggest black market buyer and stockpiler of cyberweapons (weaponized malware that can be used to hack into computer systems, spy on citizens, and destabilize vast computer networks)? The US government. What country has one the deadliest arsenals of weapons of mass destruction? The US government. Who is the largest weapons manufacturer and exporter in the world, such that they are literally arming the world? The US government. Which is the only country to ever use a nuclear weapon in wartime? The United States. How did Saddam Hussein build Iraq’s massive arsenal of tanks, planes, missiles, and chemical weapons during the 1980s? With help from the US government.

Who gave Osama bin Laden and al-Qaida “access to a fortune in covert funding and top-level combat weaponry”? The US government. What country has a pattern and practice of entrapment that involves targeting vulnerable individuals, feeding them with the propaganda, know-how and weapons intended to turn them into terrorists, and then arresting them as part of an elaborately orchestrated counterterrorism sting? The US government. Where did ISIS get many of their deadliest weapons, including assault rifles and tanks to anti-missile defenses? From the US government. Which country has a history of secretly testing out dangerous weapons and technologies on its own citizens? The US government. Are you getting the picture yet? The US government isn’t protecting us from terrorism. The US government is creating the terror. It is, in fact, the source of the terror.

Just think about it for a minute: almost every tyranny being perpetrated against the citizenry—purportedly to keep us safe and the nation secure—has come about as a result of some threat manufactured in one way or another by our own government. Cyberwarfare. Terrorism. Bio-chemical attacks. The nuclear arms race. Surveillance. The drug wars. In almost every instance, the US government has in its typical Machiavellian fashion sown the seeds of terror domestically and internationally in order to expand its own totalitarian powers.

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Let’s celebrate progress.

Investors Supercharge Bet Amazon Will Destroy US Retail (BBG)

Investors who think Amazon.com Inc. is about to destroy the retail industry as we know it have figured out a way to supercharge that bet – by buying the online giant’s stock and pairing it with a short position in the SPDR S&P Retail ETF, symbol XRT, a foundering fund that primarily holds bricks-and-mortar stores. “If you are long Amazon, wouldn’t it make sense to be short the stocks Amazon will look to decimate?” said Ihor Dusaniwsky, head of research for S3 Partners. “It’s going long the ‘best of the breed’ and shorting the ‘worst of the breed.’” Traders are building up short positions in anticipation of XRT dropping to $40 or $41, Dusaniwsky said. The fund, which is down more than 5% this year, closed at $41.74 on Tuesday.

XRT’s top holdings include furniture stores, supermarkets and groceries, electronics chains and media streaming, all areas where Amazon is spending heavily, Dusaniwsky said. “If Amazon succeeds, it will be at the expense of companies like Wayfair, Sprouts Farmers Market, Whole Foods, Best Buy and Netflix,” Dusaniwsky said. These five companies make up around 7% of XRT, which also holds $3.37 million of Amazon stock, making it 1.2% to the portfolio. So far Amazon is holding up its end of the bet. The world’s largest online retailer beat profit and revenue estimates in the first quarter and said sales may top projections in second quarter, according to an April 27 statement. The stock’s up 28% this year, as the company continues to add subscribers to its $99-a-year Prime program, locking in loyalty and building a moat against competitors.

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Is Kashkari denying the existence of bubbles?

Fed’s Kashkari Says Don’t Use Rate Hikes To Fight Bubbles (R.)

Minneapolis Federal Reserve Bank President Neel Kashkari on Wednesday warned against using interest-rate hikes to address unwanted asset bubbles, saying that bubbles are hard to identify and such hikes would likely do more harm than good. Kashkari is a voting member this year on the U.S. central bank’s policy committee, and in March was the lone dissenter on a Fed vote to raise rates for the third time since the Great Recession. He has previously said he opposed the rate hike because he felt keeping rates low would result in more jobs for Americans who want to work. Some Fed officials have worried that keeping rates too low for too long could create asset bubbles that could set the U.S. economy up for another recession.

But the main reason Fed chair Janet Yellen and others have given for raising rates is not to tamp down bubbles, but to keep a now nearly fully employed economy from going into overdrive. Kashkari’s latest essay argues that keeping a sharp eye out for potential bubbles and using supervisory powers to protect banks from failures are better options than raising rates. “Given the challenges of identifying bubbles with any confidence and the costs of making a policy mistake, I believe the odds of circumstances ever making sense to use monetary policy to try to slow asset prices down are very low,” he wrote. “I won’t say never but a whole lot of evidence would have to line up just right for it to be the prudent course of action.”

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Horse. Barn.

US Banks Tighten Auto Lending as More Borrowers Fall Into Default (BBG)

Lenders are tightening the spigot on new auto loans, making it harder for U.S. consumers with weak credit to buy a car, data from the Federal Reserve Bank of New York show. New car loans for subprime borrowers fell in the first quarter to $25.9 billion, the lowest in two years, according to the New York Fed’s quarterly report on household debt and credit. Drivers with credit scores below 620 now comprise less than 20% of new loans, down from almost 30% a decade ago. Borrowers with the highest credit scores – 760 or more – made up nearly a third of new auto loan originations in the first quarter as lenders target the safer deals. Banks including Fifth Third Bank have been trimming their loan books and cutting back on riskier credit as delinquent auto loan balances surge.

The share of auto debt more than 90 days overdue rose to 3.82% in the first quarter, the highest in four years. While caution may be good for banks’ balance sheets, it doesn’t offer much relief for automakers, who relied on cheap credit to fuel a seven-year stretch of booming sales. Now they’re boosting discounts and cutting production to address swelling inventory on dealer lots. Ford said Wednesday it’s cutting 1,400 jobs in North America and Asia to improve profits as the U.S. auto industry recorded a fourth straight drop in monthly sales in April, after eking out a record year in 2016. Tighter credit “is a big impediment to future strength in auto sales,” said Yelena Shulyatyeva, senior U.S. economist for Bloomberg Intelligence. “A lot of this demand was driven by loose lending standards.”

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Not helping.

Canadian Officials Say Housing Risks Are Contained (BBG)

Canadian government officials delivered a vote of confidence in the country’s housing sector and banking system, telling lawmakers that Vancouver and Toronto’s real estate markets are supported by fundamentals that leave risks well-contained. Senior officials from Canada’s Finance Department testified Wednesday evening to the Senate finance committee, fielding questions about the stability of the housing market, risks posed by high household debt levels in Canada and the recent downgrade of banks by Moody’s Investors Service Inc. The hearing came amid questions about the future of Home Capital and any knock-on effect that a potential failure there could have on Canada’s housing sector, particularly in Vancouver and Toronto.

The core message from the officials was Canada’s market was stable and, despite some risks, policy makers’ measures are taking effect. “We don’t think there’s any systemic risk across the country,” said Phil King, a director at the economic and fiscal policy branch at Finance Canada. “There are specific pockets of concern, which seem to have ameliorated somewhat in the very-near term but we’re keeping a very close eye on those.” Vancouver and Toronto have “very, very strong fundamentals” supporting prices including immigration, strong job creation, strong income gains and high wealth, he said. King described a national housing market with distinct regions — surging Toronto and Vancouver, soft markets in energy-producing regions such as Calgary, and other cities like Montreal and Ottawa where policy makers have “no concerns whatsoever.”

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As Goldman Sachs should be for its activities in Greece.

Prosecutor To Label Deutsche Bank An International Criminal Association (BBG)

Deutsche Bank, on trial in Milan for allegedly helping Banca Monte dei Paschi di Siena conceal losses, must face accusations that it was running an international criminal organization at the time. Prosecutors used internal Deutsche Bank documents and emails to persuade a three-judge panel to consider whether there were additional, aggravating circumstances to the charges the German lender already faces related to derivatives transactions. The material included a London trader’s “well done!” message to a banker who is now on trial, evidence seen by Bloomberg shows. Allowing prosecutors to argue that the alleged market manipulation crimes were committed by an organization operating in several countries could lead to higher penalties if they win a conviction.

Giuseppe Iannaccone, a lawyer for Deutsche Bank and some of the defendants, sought to block the move at Tuesday’s hearing, saying there wasn’t a clear connection between the original charge of market manipulation and the alleged aggravating circumstances. “The trial for Deutsche Bank managers becomes more problematic after the judge’s decision,” said Giampiero Biancolella, an attorney specializing in financial crime who isn’t involved in the case. “If proven, the aggravating circumstance may increase the eventual jail sentence for the market manipulation to a maximum of nine years.” The German bank and Nomura went on trial in Milan in December, accused of colluding with Monte Paschi to cover up losses that almost toppled the Italian lender before its current battle for survival. Thirteen former managers of Deutsche Bank, Nomura and Monte Paschi were charged for alleged false accounting and market manipulation.

Deutsche Bank and Nomura are accused of using complex derivative trades to hide losses at the Italian lender, leading to a misrepresentation of its finances between 2008 and 2012. After the deals came to light in a 2013 Bloomberg News report, Monte Paschi restated its accounts and tapped shareholders twice to replenish capital. Deutsche Bank and six current and former managers were indicted in Milan Oct. 1 for allegedly helping falsify the Siena-based lender’s accounts through a deal known as Santorini. The prosecution’s request to label Deutsche Bank an international criminal association hinged on events that occurred in other parts of the globe, including the possible manipulation of an index, which isn’t the subject of charges in the Milan case.

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History’s biggest ever financial boondoggle. And nobody dares stop it.

Germany Asks US For Classified Briefing On Lockheed’s F-35 Fighter (R.)

The German Air Force this month sent the U.S. military a written request for classified data on the Lockheed Martin F-35 fighter jet as it gears up to replace its current fleet of fighter jets from 2025 to 2035. The letter, sent by the Air Force’s planning command and seen by Reuters, makes clear that the German government has not yet authorized a procurement program and is not committed to any particular aircraft to replace its current warplanes. It said the defense ministry would carry out “an in-depth evaluation of market available solutions, including the F-35, later this year,” with a formal “letter of request” to be issued in coming months.

Germany’s interest in the F-35 – the Pentagon’s most advanced warplane and its costliest procurement program – may surprise some given that it is part of the four-nation consortium that developed the fourth-generation Eurofighter Typhoon, which continues to compete for new orders. The Eurofighter is built by Airbus as well as Britain’s BAE Systems and Leonardo of Italy. Germany will need to replace its current fleet of fourth-generation warplanes – Tornadoes in use since 1981 and Eurofighters – between 2025 and 2035. The F-35 is considered a fifth-generation fighter given stealth capabilities that allow it to evade enemy radars.

Berlin’s letter also comes amid growing tensions between the West and Russia over Moscow’s support for separatists in eastern Ukraine, with NATO officials saying that Russian naval activity now exceeds levels seen even during the Cold War. Britain, the Netherlands, Norway, Turkey and Italy – key NATO allies of Germany – are already buying the F-35 fighter jet to replace their current aircraft, and other European countries such as Switzerland, Belgium and Finland are also looking at purchasing the fifth-generation warplane. Germany’s gesture may be aimed at strengthening its hand in negotiations with its European partners over the scale and timing of development of a next generation of European fighters. Any moves to buy a U.S. built warplane could run into political resistance in Germany, which has strong labor unions.

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Just turn parliament into a prison building. Most effective solution.

Brazil: Explosive Recordings Implicate President Michel Temer In Bribery (G.)

Angry crowds and outraged members of Brazil’s congress have demanded the impeachment of President Michel Temer following reports he was secretly recorded discussing hush money pay-offs to a jailed associate. The tapes were presented to prosecutors as part of a plea bargain by Joesley and Wesley Batista, brothers who run the country’s biggest meat-packing firm JBS, according to O Globo newspaper. They are said to contain conversations that incriminate several leading politicians, including the former presidential candidate Aecio Neves and the former finance minister Guido Mantega. Temer is alleged to have talked with Joesley about cash payments to Eduardo Cunha, the former speaker of the House who has been jailed for his role in the sprawling Petrobras corruption scandal.

Cunha is in the same ruling Brazilian Democratic Movement party as Temer and initiated the impeachment of Dilma Rousseff that allowed him to take over the presidency. He has alluded to the many secrets he knows about his former colleagues. In covert recordings made during two conversations in March, Joesley tells Temer he is paying Cunha to keep him quiet, to which the president allegedly replies: “You have to keep it going, OK?” According to Globo, police also have audio and video evidence that Temer’s aide Rocha Loures negotiated bribes worth 500,000 reais (US$160,000) a week for 20 years in return for helping JBS overcome a problem with the fair trade office.

No audio or transcripts were released. The supreme court has refused to comment on the validity of the alleged leak – but the news has enraged the public. Shouts and pot-banging (a traditional form of protest in Latin America) could be heard when the allegations were aired on TV. Crowds also gathered outside the presidential palace chanting “Fora Temer” (Temer out). Two congressmen submitted impeachment motions in the lower house.

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Macron falls in line with what Berlin wants as much as Hollande did. Where’s the difference? Merkel and Schäuble like it, because now no-one will dare speak up anymore.

Get Ready For The Franco-German Revival (Pol.)

With none of the previous three presidents Merkel has sat across from in the past 12 years did the cautious chancellor achieve the deep mutual understanding and political serendipity that powered European integration in the eras of Konrad Adenauer and Charles de Gaulle, Helmut Schmidt and Valéry Giscard d’Estaing, or Helmut Kohl and François Mitterrand. Macron promised to be a “frank, direct and constructive partner” for Berlin. If he can convince Merkel to revive the frequent, unscripted, plain-speaking meetings between French and German leaders of the past, it will be a crucial step toward setting a joint agenda for Europe. July’s joint cabinet session — where both defense and the economy will be on the agenda — will be a first test of the promised Franco-German revival.

Macron has made it clear he intends to use France’s major contribution to European defense and security as a lever to help secure progress in the eurozone. But his influence in Berlin, as he acknowledged, will depend on his ability to break the rigidities in the French labor market and put the country’s young people to work. He will need to overcome deep-seated resistance to eurozone intervention in national budget policies. The last Socialist government was as defiant as its Gaullist predecessors when the European Commission repeatedly criticized France’s excessive deficits, high tax burden on business and employment, and generous welfare and pension systems. But Macron is committed to the right track. Honoring commitments to EU-supervised economic reforms are part of his vision for a more integrated eurozone, he said in Berlin.

[..] When it comes to the eurozone, Germany will have to end its resistance to further risk-sharing to complete the EU’s banking union. And here progress is likely to be difficult. Macron will need Berlin to lift its blockade on common deposit insurance and a joint fiscal backstop for the European bank resolution fund. Finance Minister Wolfgang Schäuble — who has expressed support for some of Macron’s ideas — will hold both steps hostage at least until after the German general election in September. Schäuble is holding out for a very different form of eurozone governance, in which an inter-governmental (i.e. German-controlled) European Monetary Fund, built on the existing European Stability Mechanism, would impose automatic debt restructuring and an austerity program on any eurozone country that needed assistance.

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Can Tsipras impose cuts when they violate his constitution? Can the Troika?

Greek Parliament Committee Finds Salary, Pension Cuts Unconstitutional (GR)

The Parliamentary Scientific Committee in its new report that accompanies the new omnibus bill expressed concern over the constitutionality of the provisions of Law 4387/2016 that calls for new cuts to pensions and special salaries. According to Professor and former SYRIZA lawmaker Alexis Mitropoulos, the report was posted on the parliament site shortly after midnight on Tuesday. Mitropoulos spoke on Ant1 television on Wednesday saying that, “After the recent Court of Audit decision, and following a long meeting, the committee found that the cuts in special wages, pensions and taxation were found to be unconstitutional.”

The new bill includes deep cuts in pensions and slashes in salaries of army and police personnel, sectors where special salary regulations apply. “The proposed reductions disrupt the balance that must exist between, on the one hand, the pension as a personal asset, which is protected by Article 1 and, on the other, of the public interest,” the report says regarding the pension cuts. As for cuts in special salaries, the report argues that, the cuts “are part of a wider fiscal adjustment program containing a package of measures to revive the Greek economy and consolidate public finances” but their implementation “is a necessary but not sufficient condition for the constitutionality of these cuts.”

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A child can tell that this is nonsense:

Growth predicted at “..2.1% this year and 2.5% in 2018, and continuing at a similar pace until 2060(!)..”. While the demanded budget surplus is 3.5% for the next 5 years. Which guarantees the growth predictions won’t be achieved.

Deal On Greece Is Touch And Go (K.)

A senior eurozone official put on Wednesday the chances of a complete agreement on Greece being reached at this Monday’s Eurogroup meeting at 50%, while many issues remain open and the negotiation battle at this stage is mainly between Berlin and the IMF. The official also reiterated that there will be no tranche disbursement without the IMF agreeing to participate in the Greek program. There are three scenarios on the negotiating table, according to two eurozone officials who took part in last Monday’s Euro Working Group. All three provide for the primary budget surplus to remain at 3.5% of GDP until 2022, showing that this is not negotiable anymore.

The main obstacle to an agreement among Greece’s creditors is that they disagree on the rate of Greek growth in the coming years, a key parameter for the extent of Greek debt easing. The first scenario provides for growth to match the European Commission’s estimates for 2.1% this year and 2.5% in 2018, and continuing at a similar pace until 2060. If there is a primary surplus of 2-2.6% of GDP, then the measures agreed last May will suffice to make the Greek debt sustainable. According to the second scenario, growth will be below even the IMF forecast and will not exceed 1% per year in the long term. That should take the primary surplus down to 1.5% of GDP from 2023, and more measures will be needed to render the debt sustainable. The third scenario is similar to the second, but the growth forecast is slightly higher, at 1.25%.

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Forget about hoping Brussels is looking for a solution NOT located in southern Libya. Just imagine what you would do if this was your child.

Traffickers, Smugglers Exploit Record Rise In Unaccompanied Child Refugees (G.)

A record increase in the number of refugee and migrant children travelling alone has left many exposed to sexual abuse and exploitation at the hands of traffickers and opportunists. At least 300,000 unaccompanied and separated children were recorded in 80 countries in 2015-16, a rise of almost 500% on the 66,000 documented in 2010-2011, according to a Unicef report published on Wednesday. The central Mediterranean passage is one of several migration routes identified as particularly dangerous for children. More than 75% of the 1,600 14- to 17-year-olds who arrived in Italy reported being held against their will or forced to work.

“One child moving alone is one too many and yet, today, there are a staggering number of children doing just that – we as adults are failing to protect them,” said Unicef’s deputy executive director, Justin Forsyth. “Ruthless smugglers and traffickers are exploiting their vulnerability for personal gain, helping children to cross borders, only to sell them into slavery and forced prostitution. It is unconscionable that we are not adequately defending children from these predators.” The sheer number of migrant and refugee arrivals has left states struggling to cope, with children often falling through the cracks.

Border closures, aggressive pushback measures, overcrowded shelters, makeshift camps and heavy-handed authorities have only served to exacerbate the risk of child exploitation, encouraging unaccompanied minors to take highly dangerous routes in a desperate bid to reach their destinations. One 17-year-old girl from Nigeria told Unicef that she was trapped in Libya for three months and sexually assaulted by her smuggler-turned-trafficker as she attempted to travel alone to Italy. “Everything [he] said – that we would be treated well and that we would be safe – it was all wrong. It was a lie,” she said of the man who offered to help her. “He said to me if I didn’t sleep with him, he would not bring me to Europe. He raped me.”

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