Jun 192019
 
 June 19, 2019  Posted by at 9:00 am Finance Tagged with: , , , , , , , , , , ,  


Pablo Picasso The circus 1933

 

The Fed Just Released a Damning Indictment of Capitalism (NYMag)
Russia to US: Drop Middle East Troop Plan And Stop Provoking Iran (R.)
Iran At The Center Of The Eurasian Riddle (Escobar)
The Sino-Russian Masterplan To End US Dominance In Middle East (Bodansky)
Russia, China, Block US Effort To Halt North Korea Fuel Deliveries (AFP)
US Lawmakers Call For Facebook To Pause Cryptocurrency Project (R.)
Japan Exports Slide For 6th Straight Month (R.)
Japanese Businesses See Economy Peaking Out, Want More Stimulus (R.)
The Truth vs Your Truth (Jim Kunstler)
Canada Approves Contentious Oil Pipeline Expansion (R.)
Koch-Oil Big Lies and Ecocide Writ Large in Canada (CP)
Canadian Permafrost Thaws 70 Years Early (R.)

 

 

“The fundamental challenge in combating inequality is that wealth begets more wealth.”

The Fed Just Released a Damning Indictment of Capitalism (NYMag)

In 2011, Michael Norton of Harvard Business School and Dan Ariely of Duke University published a study on Americans’ views of how wealth was distributed in their society, and how they felt it should be distributed. They found that, in the average American’s ideal world, the richest 20 percent would own 32 percent of national wealth. In reality, the top quintile owned 84 percent as of 2011. And that share has grown in the intervening years. Today, the one percent alone commands roughly 40 percent of all America’s wealth. Given all this, any politician who insists that American capitalism is “already great” is clearly a far-right extremist whose indifference to inequality puts him or her wildly out of step with ordinary people. But is it the case that Warren and Sanders would take things too far in the other direction?

Not remotely. I do not have the relevant data or skills to project precisely how the full implementation of either candidate’s agenda would influence America’s wealth distribution. But neither candidate is calling for a series of reforms that would place the United States far outside the Western European norm. In fact, both Warren and Sanders have cribbed their signature policies from European nations. As the 2018 World Inequality Report demonstrated, policy choices do matter — and income inequality is much lower in Western Europe than it is in the U.S.

But even Scandinavia’s social democracies feature far more inequitable distributions of wealth than Americans think to be fair, according to Ariely and Norton’s survey. What’s more, it will take a lot of redistribution just to prevent America’s current wealth gap from growing even larger. The fundamental challenge in combating inequality is that wealth begets more wealth. Those who can afford to invest in bonds get to collect annual interest payments; those who invest in stocks or real estate typically see their capital assets annually appreciate. Thus, most years, our nation’s collective capital stock directs loads of passive income to America’s wealthiest citizens.

Read more …

Things are shifting. And not a little bit.

Russia to US: Drop Middle East Troop Plan And Stop Provoking Iran (R.)

Russia told the United States on Tuesday to drop what it called provocative plans to deploy more troops to the Middle East and to cease actions that looked like a conscious attempt to provoke war with Iran. The comments, from Deputy Foreign Minister Sergei Ryabkov to Russian news agencies, followed an announcement from Acting U.S. Defense Secretary Patrick Shanahan a day earlier who said Washington planned to send around 1,000 more troops to the Middle East for defensive purposes. President Hassan Rouhani said on Tuesday that Iran would not wage war against any nation and the Kremlin called for restraint from all sides.


Ryabkov told reporters that Moscow had repeatedly warned Washington and its regional allies about what he called the “unthinking and reckless pumping up of tensions in an explosive region.” “Now what we see are unending and sustained U.S. attempts to crank up political, psychological, economic and yes military pressure on Iran in quite a provocative way. They (these actions) cannot be assessed as anything but a conscious course to provoke war,” Ryabkov was cited as saying. If Washington did not want war it had to show it, he said. “If that’s really how it is then the U.S. should step back from reinforcing its military presence,” said Ryabkov.

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“Xi was adamant; Beijing will keep developing ties with Tehran “no matter how the situation changes”.

Iran At The Center Of The Eurasian Riddle (Escobar)

With the dogs of war on full alert, something extraordinary happened at the 19th summit of the Shanghai Cooperation Organization (SCO) late last week in Bishkek, Kyrgyzstan. Virtually unknown across the West, the SCO is the foremost Eurasian political, economic and security alliance. It’s not a Eurasian NATO. It’s not planning any humanitarian imperialist adventures. A single picture in Bishkek tells a quite significant story, as we see China’s Xi, Russia’s Putin, India’s Modi and Pakistan’s Imran Khan aligned with the leaders of four Central Asian “stans”. These leaders represent the current eight members of the SCO. Then there are four observer states – Afghanistan, Belarus, Mongolia and, crucially, Iran – plus six dialogue partners: Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka and, crucially, Turkey.

The SCO is bound to significantly expand by 2020, with possible full membership for both Turkey and Iran. It will then feature all major players of Eurasia integration. Considering the current incandescence in the geopolitical chessboard, it’s hardly an accident a crucial protagonist in Bishkek was the ‘observer’ state Iran. Iranian President Hassan Rouhani played his cards masterfully. Rouhani speaking directly to Putin, Xi, Modi and Imran, at the same table, is something to be taken very seriously. He blasted the US under Trump as “a serious risk to stability in the region and the world”. Then he diplomatically offered preferential treatment for all companies and entrepreneurs from SCO member nations committed to investing in the Iranian market.

[..] Xi was adamant; Beijing will keep developing ties with Tehran “no matter how the situation changes”. Iran is a key node of the New Silk Roads, or Belt and Road Initiative (BRI). It’s clear for the leadership in Tehran that the way forward is full integration into the vast, Eurasia-wide economic ecosystem. European nations that signed the nuclear deal with Tehran – France, Britain and Germany – can’t save Iran economically.

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“..advance negotiations with all key oil producers – including Saudi Arabia, Iraq, and Iran – on substituting the petrodollar with a basket of currencies where the yuan, the euro and the ruble dominate.”

The Sino-Russian Masterplan To End US Dominance In Middle East (Bodansky)

Russian Pres. Vladimir Putin’s early June 2019 summit in Moscow with People’s Republic of China (PRC) Pres. Xi Jinping seems likely to have a disproportionate influence on the next phases of the crises unfolding in the greater Middle East, and therefore on the future of the region. The escalating confrontation between Iran and the US is both influencing and influenced by the mega-trends set by Russia and the PRC. Although the key meetings took place on June 5, 2019, the seeds of the new joint strategy were already planted during the May 13, 2019, summit in Sochi between Russian Foreign Minister Sergei Lavrov and Chinese State Councilor and Foreign Minister Wang Yi. They went over all the key topics in preparation for the Putin-Xi summit.

On June 5, 2019, Presidents Vladimir Putin and Xi Jinping met in Moscow and decided to not only markedly upgrade the bilateral relations and alliance of their countries, but to use the new relations in order to shape the long-term posture of the entire Eastern Hemisphere in their favor. Emphasis was to be put on the Eurasian Sphere (the Kremlin’s high priority) and the New Silk Road (the Forbidden City’s high priority), as well as the Korean Peninsula which is most important for both. One of the first major confrontations with the US by Russia and the PRC was to be over the greater Middle East. The main reason was the advance negotiations with all key oil producers – including Saudi Arabia, Iraq, and Iran – on substituting the petrodollar with a basket of currencies where the yuan, the euro and the ruble dominate.

Using the currency basket would enable the sellers and buyers to go around the US-imposed sanctions and quotas. Indeed, Beijing and Moscow were now enticing the oil producers with huge, long-term export deals which were both financially lucrative and politically tempting by offering guarantees for the well-being of the participating governments. The crux of the proposal is regional and includes flagrant disregard of the US sanctions on Iran. However, the key to the extent of the commitment of both Beijing and Moscow lies in the growing importance and centrality of the New Silk Road via Central Asia. Persia had a crucial rôle in the ancient Silk Road, and both the PRC and Russia now expect Iran to have a comparable key rôle in the New Silk Road.

The growing dominance of heritage-based dynamics throughout the developing world, including the greater Central Asia and the greater Middle East, makes it imperative for the PRC to rely on historic Persia/Iran as a western pole of the New Silk Road. It is this realization which led both Beijing and Moscow to give Tehran, in mid-May 2019, the original guarantees that Washington would be prevented from conducting a “regime change”.

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Hands off Iran. Hands off Korea.

Russia, China, Block US Effort To Halt North Korea Fuel Deliveries (AFP)

Russia and China on Tuesday blocked an American initiative that aimed to halt fuel deliveries to North Korea, which Washington accuses of exceeding its annual ceiling for 2019, diplomatic sources said. Moscow and Beijing said more time was needed to study the US request, which was backed by 25 UN members including Japan, France and Germany, according to the sources. A week ago, the United States, in a report, accused North Korea of breaching the United Nations-imposed ceiling on fuel imports by carrying out dozens of ship-to-ship transfers this year.


The cap on fuel imports is among a series of tough sanctions adopted by the UN Security Council in response to North Korea’s ballistic missile and nuclear tests. The United States insists that “maximum pressure” from the sanctions must remain on North Korea until it agrees to dismantle its weapons program. Washington had asked that a United Nations sanctions committee rule that the annual cap of 500,000 barrels had been exceeded and order all countries to halt fuel deliveries. Countries on the sanctions committee, including Russia and China, had until Tuesday to raise objections to the request to cut off fuel shipments to North Korea.

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They simply don’t understand.

US Lawmakers Call For Facebook To Pause Cryptocurrency Project (R.)

Maxine Waters, who chairs the House Financial Services Committee, said Facebook should halt development of the product, dubbed Libra, until Congress and regulators can review the issue, and called on company executives to testify before Congress. “Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data,” she said in a statement. “With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users.” Her comments came after Representative Patrick McHenry, the senior Republican on her panel, also sought a hearing on Facebook’s new initiative. A Facebook representative said the company looked forward to answering lawmakers’ questions.


Facebook’s announcement was met with immediate backlash from U.S. lawmakers and regulators across the globe, who are concerned that Facebook is already too massive and careless with users’ privacy. “Facebook is already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy. We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight,” said Senator Sherrod Brown, the top Democrat on the Senate Banking Committee, in a statement. [..] French Finance Minister Bruno Le Maire called for more regulation of tech companies. “This instrument for transactions will allow Facebook to collect millions and millions of data, which strengthens my conviction that there is a need to regulate the digital giants,” he said in an interview on Europe 1 radio.

Read more …

Meanwhile, Japan is sinking.

Japan Exports Slide For 6th Straight Month (R.)

Japan’s exports fell for a sixth straight month in May as China-bound shipments of semiconductor manufacturing equipment and car parts weakened, in a sign of a deteriorating outlook for growth as the trade-reliant economy faces persistent pressure from slowing external demand. Sluggish exports have been a source of concern among Japanese policymakers, especially as a bruising U.S.-China tariff war has upended supply chains and hit global growth, trade and investment.


“The business sentiment of Japanese firms, and in particular exporters, is falling depending on the extent of U.S.-China trade tensions, and that will suppress exporters’ capital expenditure,” said Hiroshi Miyazaki, senior economist at Mitsubishi UFJ Morgan Stanley Securities. “I think that will be a negative for Japan’s economy.” Ministry of Finance (MOF) data showed on Wednesday that exports declined 7.8% in May from a year earlier, down for the sixth straight month. The fall in shipments compared with a 7.7% annual decrease expected by economists in a Reuters poll, and followed a 2.4% year-on-year fall in April.

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But the BOJ already owns half the country…

Japanese Businesses See Economy Peaking Out, Want More Stimulus (R.)

Japan’s economy is likely to stop expanding this year and into next with the Sino-U.S. trade war and a planned sales tax hike expected to crimp activity, a Reuters poll of Japanese companies found, with most calling for fresh stimulus to prop up growth. The gloomy outlook suggests that Prime Minister Shinzo Abe’s reflationary policy mix, known as “Abenomics”, is sputtering. “A combination of the U.S.-China trade friction and the tax hike in October will almost certainly tip Japan into recession,” an electric machinery maker wrote in the monthly survey.The Corporate Survey found 42% of respondents see the economy contracting into next year, while 52% believe growth will remain stagnant.


Just 5% foresee it expanding, the June 4-13 poll showed. China and United States, the world’s two largest economies, have been locked in a tit-for-tat tariff war for nearly a year, which has curbed global trade and upended supply chains, pressuring Japan’s exports and factory output. Some 55% of Japanese firms said harsher U.S. punitive tariffs against China were affecting their business profits, with much higher proportions of transport machinery firms and chemicals makers taking a hit, the Reuters Corporate Survey showed. [..] To keep the economy from faltering, nearly two-thirds of companies called for fresh stimulus, with a quarter of respondents wanting an individual income tax cut and nearly as many demanding the government postpone the sales tax hike.

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“..America is too far gone intellectually to sort all this out.”

The Truth vs Your Truth (Jim Kunstler)

America’s relationship with authority is in grievous disrepair with Robert Mueller as exhibit-A — a would-be Moses-like figure, only with feet of clay and a head rotting like the proverbial fish of institutional corruption. He announced in his May 29th “news conference” — in which he refused to entertain questions — that he preferred not to testify in any further inquiries about his Special Counsel investigation. What a cheeky fellow! It was, perhaps, a message to Reps. Nadler, Schiff, and comrades on the various congressional committees to (hint hint) not even bother calling him. But Mr. Mueller was, after all, a mere employee of the US Department of Justice, not a herald of God Almighty.

I rather imagine that the Attorney General, Mr. Barr, has a few additional questions he would like to ask his “old friend.” Will Mr. Mueller, this Greta Garbo of jurisprudence, coyly demur? And on what basis, exactly? I don’t think he can get away with it. The complexities of RussiaGate make all previous government scandals look as simple as Pin the Tail on the Donkey. The Internet will prove to be both its doing and its undoing. The much abused and perverted official “truths” of the matter were amplified by the Internet. And, of course, these “truths” were enlisted in service of Mrs. Clinton and the rogue bureaucracy looking to defend her (and themselves) at all costs. The cost turns out to be the dismemberment of thinking itself in America.

It is now taken for granted that anyone who persists in thinking for him/her/zheself will be tossed out of the Internet’s large “social media” arenas in Mark Zuckerberg’s and Jack Dorsey’s quest to purify history. They will not succeed. But they have certainly succeeded in needlessly antagonizing Russia, shoving foreign policy debate into sequestered game rooms that are at once halls-of-mirrors and echo chambers, and making the world a much more dangerous place. There is also a pretty fair percentage chance that America is too far gone intellectually to sort all this out.

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Justin trying to lose the next election.

Canada Approves Contentious Oil Pipeline Expansion (R.)

Canada on Tuesday approved as expected a hotly contested proposal to expand the western Canadian crude oil pipeline it bought last year, providing hope for a depressed energy industry but angering environmental groups. Construction on the expansion of the Trans Mountain pipeline is scheduled to resume this year, Prime Minister Justin Trudeau told a news conference. A senior government official, speaking on condition of anonymity, said earlier that Ottawa expected legal challenges to the approval. The project would triple Trans Mountain’s capacity to carry 890,000 barrels per day from Alberta’s oil sands to British Columbia’s Pacific coast, alleviate congestion on existing pipelines and diversify exports away from the United States.


Trudeau, who faces a tough fight in a national election scheduled for October, has been under pressure both from western Canadian politicians who accuse him of doing too little for the oil industry, and from environmental groups, which see the oil sands as a highly polluting source of crude production. “This isn’t an either/or proposition. It is in Canada’s national interest to protect our environment and invest in tomorrow, while making sure people can feed their families today,” he said, adding he knew some people would be disappointed.

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Make Canada a colony again.

Koch-Oil Big Lies and Ecocide Writ Large in Canada (CP)

As we know, big lies can run free across borders with few joining the dots. For example, no media reports that China’s growing dispute with Canada is based on Canada’s enforcement of the Trump administration’s unilateral and illegal embargo against oil-competitor Iran. A cynical reply is that this is predictable. Canada attacks any designated US Enemy in junior partnership with global corporate command. But this time there is a new twist. Canada is attacking itself without knowing it. A US Big-Oil backed juggernaut of Conservative provincial governments and the federal Opposition are well advanced in a Canada campaign to reverse longstanding parliamentary decisions, environmental laws, climate action initiatives, Supreme Court directions, first-nations negotiations, and bring down the government of Canada.

Yet no-one in public or media circles has joined the dots. Canada’s vast tar-sands deposits are world famous as surpassing Saudi Arabia oil-field capacities in total barrels of potential yield. Great Canada! Yet few notice that over two-thirds of the entire tar-sands operations are owned by foreign entities sending their profits out of Canada, and almost all its raw product is controlled for refining and sale in the US. What is especially kept out of the daily news is the incendiary fact that the infamous, election-interfering and oft-EPA-convicted Koch brothers have a dominant stake in the toxic crude of the Alberta tar-sands seeking a massive BC-pipeline out to their US refineries.

Koch-owned industries have already extracted countless billions of their near $100-billion fortune from the tar-sands and deployed their well-known voter-manipulations to change the balance of power in Canada as they have done in the US. The objective is the same in both cases – ever more tax-free, publicly subsidized and state-enforced control by US Big Oil of Alberta’s massive oil resources with no government regulations or interferences in the way.

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Methane. Running around my brain.

Canadian Permafrost Thaws 70 Years Early (R.)

Permafrost at outposts in the Canadian Arctic is thawing 70 years earlier than predicted, an expedition has discovered, in the latest sign that the global climate crisis is accelerating even faster than scientists had feared. A team from the University of Alaska Fairbanks said they were astounded by how quickly a succession of unusually hot summers had destabilized the upper layers of giant subterranean ice blocks that had been frozen solid for millennia. “What we saw was amazing,” Vladimir E. Romanovsky, a professor of geophysics at the university, told Reuters by telephone. “It’s an indication that the climate is now warmer than at any time in the last 5,000 or more years.” With governments meeting in Bonn this week to try to ratchet up ambitions in United Nations climate negotiations, the team’s findings, published on June 10 in Geophysical Research Letters, offered a further sign of a growing climate emergency.

The paper was based on data Romanovsky and his colleagues had been analyzing since their last expedition to the area in 2016. The team used a modified propeller plane to visit exceptionally remote sites, including an abandoned Cold War-era radar base more than 300 km from the nearest human settlement. Diving through a lucky break in the clouds, Romanovsky and his colleagues said they were confronted with a landscape that was unrecognizable from the pristine Arctic terrain they had encountered during initial visits a decade or so earlier. The vista had dissolved into an undulating sea of hummocks – waist-high depressions and ponds known as thermokarst. Vegetation, once sparse, had begun to flourish in the shelter provided from the constant wind.

Read more …

 

God in his wisdom made the fly.
And then forgot to tell us why.

– Ogden Nash

 

 

 

 

Jun 062019
 
 June 6, 2019  Posted by at 9:54 am Finance Tagged with: , , , , , , , , , , ,  


Pablo Picasso Guitar 1925

 

The China Battle Has Just Started (Vague)
Beijing Warns US Farmers May Lose China Market For Good (SCMP)
Millennial Net Wealth Collapses (ZH)
Aftermath: Interview with James Rickards (Whalen)
Google, Facebook Have Tight Grip On Growing US Online Ad Market (R.)
For MMT (Mitchell/Fazi)
The Great Bilderberg Secret Of 2019 (Escobar)
Welsh Government Officially Switches To Campaign For Remain (TNE)
Fitch Downgrades Mexico And Moody’s Lowers Outlook (R.)
Fiat Chrysler Withdraws Merger Offer For Renault, Blames French Politics (R.)
Lavrov Says D-Day Memorials Are Part Of A ‘False’ History Of WWII (BI)
Russia to West: D-Day Wasn’t Decisive In Ending World War Two (R.)
People Eat At Least 50,000 Plastic Particles A Year (G.)

 

 

“It’s about wealth and power, not political systems or ideology.”

The China Battle Has Just Started (Vague)

Long-term, intense economic competition between China and the United States is inevitable. It’s simply a result of China’s new economic size. It’s about wealth and power, not political systems or ideology. Forget these two countries per se. Take any country that has been an uncontested economic leader for decades, add a rapidly rising country that is becoming an economic threat, and watch the battle for markets, trade, and intellectual property unfold. The current trade negotiations could get uglier and derail. But even if they don’t, both sides will likely feel they did not get what they needed, and future rounds could get worse. There’s almost never a situation where the two leaders in a market don’t get locked in a protracted, high-stakes struggle.

[..] It’s also worth noting the history of free trade. The United States was one of the most protectionist nations in history during most of the nineteenth and early twentieth centuries, the very period in which it rose to economic supremacy, with tariffs routinely as high as 50 percent. More politicians than not backed tariffs because they protected American industry. And supporters liked tariffs because they kept wages high. In addition, in the era before the income tax, tariffs were our chief source of revenue, and Washington relished the fact that they created a government surplus (and many a congressional debate of that era was about how to spend that surplus). The subject dominated the halls of Congress.

[..] Now that the United States has woken up, my best guess is that it is not going to sit idly and let China’s encroachment continue. Trump’s approach may be poorly conceived and ham-handed, but some kind of more assertive response was overdue. China’s raison d’être is its own wealth and preeminence, and it is not likely it will permanently stand down, even if it does so strategically from time to time. In fact, in discussing this trade negotiation, Xi is now invoking China’s almost mythic tale of heroic perseverance, the Long March. Absent a China implosion—a la Japan in the late 1990s—even occasional rapprochement won’t abate the ferocity of this competition. The only question is how polite or impolite, or even bellicose, it will be.

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Let China grow its own food. Nothing wrong with that.

Beijing Warns US Farmers May Lose China Market For Good (SCMP)

Farmers in the United States cannot afford to lose the Chinese market, but farmers in China will be able to withstand the impact of American tariffs, according to a top agriculture official in Beijing. Han Jun, vice-minister of agriculture and rural affairs, said China’s retaliatory tariffs on American products – the latest of which took effect on Saturday – now covered “virtually all US agricultural product exports to China”, warning that US farmers could lose the Chinese market for good. “If the US doesn’t lift all additional tariffs [levied on Chinese products], bilateral agricultural product trade between China and the US, including soybean trade, will never go back to normal,” Han told the official Xinhua news agency.

“If the US loses China’s market, it will be very difficult for the US to regain it.” Han, who is also a top policymaker as deputy head of the Office of the Central Leading Group for Rural Affairs, said the two rounds of aid offered by US President Donald Trump to American farmers would not be enough to cover their potential losses if they lost the Chinese market. But he said Chinese farmers would be able to weather the impact of American tariffs. In terms of the soybean trade, while China’s imports from the United States had plunged, it could find ways to diversify its sources, including encouraging Chinese farmers to grow more of the crop and buying more from other countries, Han said.

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Everybody gets poorer while the Fed pours trillions into the economy.

Millennial Net Wealth Collapses (ZH)

The net worth of millennials (18- to 35-year-old) has collapsed 34% since 1996, according to a new, shocking report from Deloitte. Millennials are financially worse off than any other generation before them. With student loans, auto and credit card debts, rising rents, and out of control, health-care costs have pushed their average net worth below $8,000. Deloitte told The Washington Post that their findings reveal that millennials are delaying home-buying and marriage because of massive debt loads and rising costs are making big ticketed items virtually unaffordable. “The narrative out there is that millennials are ruining everything, from breakfast cereal to weddings, but what matters to consumers today isn’t much different than it was 50 years ago,” chief retail officer Kasey Lobaugh told the Post.

“Generally speaking, there have not been dramatic changes in how consumers spend their money.” Lobaugh described the soaring wealth inequality gap as another reason why young adults have little or no net wealth. In a separate report, we highlighted in April that 60% of millennials don’t have $500 in savings. The Post said education expenses had climbed 65% in the past decade. Food prices have increased by 26%, health care costs are up 21%, housing jumped 16%, and transportation costs rose 11%. The study showed millennials had delayed the American dream of a house, family, and automobile because of their insurmountable debts. Since 2005, retail spending has increased by about 13%, to roughly $3 trillion per year, but Deloitte said much of that growth is due to population increase, not a robust consumer base.


In the past decade, the income growth of the top 10% of Americans jumped 1,305% more than the bottom 90% of Americans – which means millennials stuck in the gig-economy with multiple jobs and high debt loads will be trapped in a life of financial misery.

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“..the Fed has failed to distinguish between credit driven bubbles and mania driven bubbles..”

Aftermath: Interview with James Rickards (Whalen)

In the beginning of your book, you use the metaphor of The Odyssey to describe the choices facing the Federal Reserve Board going back to Alan Greenspan, who we knew as “Uncle Alan” in Washington years ago. You talk about how the Fed went from deflating bubbles before Greenspan, as with the “taking away the punch bowl” image, then to trying to maintain bubbles, and now overtly using monetary policy to stoke inflation and huge asset bubbles. Where does that leave us today?

Rickards: In the book I talk about how Greenspan defeated deflation in 2005 before he left office, but, this was a Pyrrhic victory. Low rates gave rise to the housing bubble and subprime debt crisis. Since 2008, we’ve had more of the same but a more extreme version of Greenspan’s anti-deflation medicine. If Greenspan’s three-year experiment with sub 2% rates gave rise to the Global Financial Crisis, what was the world to make of the Bernanke-Yellen policy of 0% for seven years? Bernanke’s Federal Reserve also engaged in a completely unprecedented money printing binge called quantitative easing.

[..] the Fed has failed to distinguish between credit driven bubbles and mania driven bubbles. The former are dangerous because they are connected with the credit system, the latter less so because people loose money but the crisis is not systemic. The 2000 dot.com bubble was speculative, but not credit driven so it did not turn into a systemic crisis when it popped. Of course 2008 was credit driven and it did metastasize throughout the system right up to the top of the food chain with large banks and the housing GSEs failing. When you are kicking around the idea of should I or should I not pop the bubble, this is a key distinction and the threshold question for policy.

[..] It’s one thing when loose monetary policy results in private credit extremes. The Fed can reign that in. But, what happens when public credit from the Fed is the source of the problem? The Bernanke choice of stoking asset price inflation via zero rates and QE is not something that can be reversed without a great deal of pain. Once you make that trade-off between promoting inflation and future market instability, you have no way out. You’re much better off taking the pain and accepting a lower level of economic growth in the short-run rather than deferring the pain but creating far larger asset bubbles down the road. There is no way out of the Bernanke policy choice without bigger bubbles and much larger market crash that results.

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Why they must be broken up.

Google, Facebook Have Tight Grip On Growing US Online Ad Market (R.)

The U.S. internet advertising industry is projected to hit $160 billion by 2023 from $107 billion last year, led by fast-growing categories like mobile video with Alphabet Inc’s Google and Facebook Inc firmly controlling the market, consultancy PwC said on Wednesday. The two tech giants together commanded nearly 60% of the U.S. internet advertising market in 2018, according to the report, up 3% from the previous year. Google’s YouTube dominates online video, while Facebook has been expanding its video product called Watch and adding advertising options. Google and Facebook are both currently under watch by U.S. regulators for possible antitrust concerns, as well as tech giants Apple Inc and Amazon.com Inc.


U.S. wireless carrier AT&T Inc despite spending $85 billion for media company Time Warner to transform into a media and advertising firm, has only managed to eke out single digit market share, according to PwC. Gaining market share is difficult because platforms must have features that are new and specific as well as some degree of emerging technology, said C.J. Bangah, a principal at PwC. An advantage the telecommunications companies like AT&T have over Google and Facebook is they will benefit from 5G, the next generation wireless network that is expected to bring technology like autonomous cars to reality.

Read more …

A discussion we will be having. Because what we have now has failed us.

For MMT (Mitchell/Fazi)

MMT is not a regime that you ‘apply’ or ‘switch to’ or ‘introduce’. Rather, it is a lens which allows us to see how our fiat monetary systems already work. How you decide to use that understanding depends on the value system or ideology you apply to it. It thus makes little sense to talk of ‘MMT-type prescription’ or an ‘MMT solution’. Indeed, governments already operate according to the framework offered by MMT, regardless of what they may claim in public (and the accounting smokescreens they may employ). Citizens are constantly told that the government cannot afford to invest more in education, healthcare, infrastructure, welfare and other public services.


Yet, there is never a lack of money when it comes tax cuts for the rich, bank bailouts, military activities and other programmes that benefit our political and economic elites. As of March 2006, approximately £4.5 billion had been spent by the UK in Iraq, enough to pay for the building of around 44 new hospitals and to fund the recruitment and retention of over 10,300 new teachers for ten years. Yet, there was never any debate about how the UK would ‘fund’ the war. Unfortunately, the mainstream macroeconomic narrative continues to plague large swathes of the left, particularly in Europe. Meadway’s article is representative. It concentrates ‘on the practical and political implications [of MMT], why they are wrong–and why Labour’s own economic programme makes more sense’. In that sense, he is really talking about a conception of the application of MMT according to a certain value set, rather than MMT itself.

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Pepe doesn’t convince me.

The Great Bilderberg Secret Of 2019 (Escobar)

The great Bilderberg secret of 2019 had to do with why, suddenly, the Trump administration has decided that it wants to talk to Iran “with no preconditions”. It all has to do with the Strait of Hormuz. Blocking the Strait could cut off oil and gas from Iraq, Kuwait, Bahrain, Qatar and Iran – 20% of the world’s oil. There has been some debate on whether this could occur – whether the US Fifth Fleet, which is stationed nearby, could stop Tehran doing this and if Iran, which has anti-ship missiles on its territory along the northern border of the Persian Gulf, would go that far. An American source said a series of studies hit President Trump’s desk and caused panic in Washington.

These showed that in the case of the Strait of Hormuz being shut down, whatever the reason, Iran has the power to hammer the world financial system, by causing global trade in derivatives to be blown apart. The Bank for International Settlements said last year that the “notional amount outstanding for derivatives contracts” was $542 trillion, although the gross market value was put at just $12.7 trillion. Others suggest it is $1.2 quadrillion or more. Tehran has not voiced this “nuclear option” openly. And yet General Qasem Soleimani, head of the Iranian Revolutionary Guards Corps’ Quds Force and a Pentagon bête noire, evoked it in internal Iranian discussions. The information was duly circulated to France, Britain and Germany, the EU-3 members of the Iran nuclear deal (or Joint Comprehensive Plan of Action), also causing a panic.

Oil derivative specialists know well that if the flow of energy in the Gulf is blocked it could lead to the price of oil reaching $200 a barrel, or much higher over an extended period. Crashing the derivatives market would create an unprecedented global depression. Trump’s former Goldman Sachs Treasury Secretary Steve Mnuchin should know as much. And Trump himself seems to have given the game away. He’s now on the record essentially saying that Iran has no strategic value to the US. According to the American source: “He really wants a face-saving way to get out of the problem his advisers Bolton and Pompeo got him into. Washington now needs a face-saving way out. Iran is not asking for meetings. The US is.”

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Quicksand. The entire country.

Welsh Government Officially Switches To Campaign For Remain (TNE)

Brexit minister Jeremy Miles said that efforts towards an acceptable Brexit had reached “the end of the road”. He said any Brexit deal must now be subject to a public vote, with remaining in the EU on the ballot paper. The Labour-led government, along with Plaid Cymru, had previously followed a 2017 policy outlined in the White Paper ‘Securing Wales’ Future’, that aimed to find “the least damaging kind of Brexit”, as Miles put it. But the government in Westminster have made this impossible, he said. “We as a government must recognise these realities and change course,” said Miles. “Parliament should now show the courage to admit it is deadlocked.” Although Wales voted to leave by 52%, public opinion has shifted towards Remain, said Miles.

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Strongarming?!

Fitch Downgrades Mexico And Moody’s Lowers Outlook (R.)

In a double blow for Mexico, credit ratings agency Fitch downgraded the nation’s sovereign debt rating on Wednesday, citing risks posed by heavily indebted oil company Pemex and trade tensions, while Moody’s lowered its outlook to negative. The Mexican peso weakened as much as 1.3% on the news. Cutting Mexico’s rating to BBB, nearing junk status, Fitch said the financial woes of state oil company Pemex were taking a toll on the nation’s prospects. Fitch said mounting trade tensions influenced its view, according to a statement issued shortly after the end of a meeting in the White House in which Mexican officials tried to stave off tariffs U.S. President Donald Trump has vowed to impose next week.


Following a surge in mostly Central American migrants arriving at the U.S. border, Trump threatened blanket tariffs on Mexican imports if it did not do more to stem the flow. “Growth continues to underperform, and downside risks are magnified by threats by U.S. President Trump,” Fitch said. Mexican President Andres Manuel Lopez Obrador took office in December with ambitious plans to build a $8 billion refinery, a decision ratings agencies and investors warned would divert funds from its more profitable production and exploration business. Lopez Obrador has said the ratings agencies were punishing Mexico for the “neo-liberal” policies of previous administrations. A Reuters analysis of Pemex accounts from the past decade shows debt increased by 75% during the term of Lopez Obrador’s predecessor, Enrique Pena Nieto, amid a landmark energy reform.

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The same governments that talk about going green own carmakers.

Fiat Chrysler Withdraws Merger Offer For Renault, Blames French Politics (R.)

Fiat Chrysler said it has abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world’s third-biggest automaker. A source close to the French carmaker’s board said Fiat Chrysler made the move after France sought to delay a decision on the deal in order to win the support of Nissan Motor Co, Renault’s Japanese alliance partner. French government officials had pushed for Nissan to support the merger. Nissan had said it would abstain. The French government, which owns a 15% stake in Renault, had also pushed Fiat Chrysler for guarantees that France would not lose jobs, and for a dividend to be paid to Renault shareholders, including the government, people familiar with the talks said.


Fiat Chrysler’s original proposal offered no special dividend to Renault shareholders. “It has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully,” Fiat Chrysler said in a statement issued early Thursday from London. Renault, in a separate statement, said its board was “unable to take a decision due to the request expressed by the representatives of the French state to postpone the vote to a later meeting.”

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Russia lost an entire generation of young men.

Lavrov Says D-Day Memorials Are Part Of A ‘False’ History Of WWII (BI)

Ahead of the 75th anniversary of the D-Day invasion of France, Russia’s foreign minister has written an article arguing that the commemorations of the event are part of a “false” history that belittles the contributions of the Soviet Union toward defeating Nazi Germany. Sergey Lavrov chastised Western powers in an article published in Russia’s International Affairs magazine on Tuesday, ahead of events in Europe to mark the D-Day landings on the Nazi-occupied Normandy coast. “False interpretations of history are being introduced into the Western education system with mystifications and pseudo-historical theories designed to belittle the feat of our ancestors,” Lavrov wrote.


“Young people are being told that the main credit in victory over Nazism and liberation of Europe goes not to the Soviet troops, but to the West due to the landing in Normandy, which took place less than a year before Nazism was defeated.” He added: “It was the peoples of the Soviet Union who broke the backbone of the Third Reich. That is a fact.” [..] Historians agree that the Soviets sustained the heaviest losses of all powers involved in World War II, placing the death toll for the Red Army at between 9 million and 11 million troops, part of an estimated 26 million Soviet citizens who died. Lavrov also wrote Russia had been falsely labeled as an aggressor in World War II. “Our detractors seek to diminish the role of the Soviet Union in World War II and portray it if not as the main culprit of the war, then at least as an aggressor, along with Nazi Germany,” he wrote.

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Quite the claim: “There was a wish to wait for the maximum weakening of Germany’s military power from its enormous losses in the east, while reducing losses in the west..”

Russia to West: D-Day Wasn’t Decisive In Ending World War Two (R.)

Russia told the West on Wednesday the Normandy landings on D-Day in 1944 did not play a decisive role in ending World War Two and that the Allied war effort should not be exaggerated. Moscow’s comments might irk war veterans in Britain where the 75th anniversary on Wednesday of the largest seaborne invasion in history was marked at a ceremony in Portsmouth attended by Queen Elizabeth and world leaders including Donald Trump and Angela Merkel. Speaking at a weekly news conference in Moscow, Foreign Ministry spokeswoman Maria Zakharova offered a tribute to those who died on the western front of World War Two and said Moscow appreciated the Allied war effort.

“It should of course not be exaggerated. And especially not at the same time as diminishing the Soviet Union’s titanic efforts, without which this victory simply would not have happened,” she said. The Soviet Union lost over 25 million lives in what it calls the Great Patriotic War, and Moscow under President Vladimir Putin has taken to marking victory in the war with a massive annual military parade on Red Square. “As historians note, the Normandy landing did not have a decisive impact on the outcome of World War Two and the Great Patriotic War. It had already been pre-determined as a result of the Red Army’s victories, mainly at Stalingrad (in late 1942) and Kursk (in mid-1943),” Zakharova told reporters.

More than 150,000 allied troops launched an air, sea and land attack on Normandy on June 6, 1944 that ultimately led to the liberation of western Europe from Nazi Germany. Moscow, which had been fighting German forces in the east for almost three years by the time of D-Day, and gradually pushing them back from early 1943, had been urging Britain’s Winston Churchill to open a second front as far back as August 1942. “There was a wish to wait for the maximum weakening of Germany’s military power from its enormous losses in the east, while reducing losses in the west,” she said.

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And we just keep making the stuff. And keep proclaiming we love our children.

People Eat At Least 50,000 Plastic Particles A Year (G.)

The average person eats at least 50,000 particles of microplastic a year and breathes in a similar quantity, according to the first study to estimate human ingestion of plastic pollution. The true number is likely to be many times higher, as only a small number of foods and drinks have been analysed for plastic contamination. The scientists reported that drinking a lot of bottled water drastically increased the particles consumed. The health impacts of ingesting microplastic are unknown, but they could release toxic substances. Some pieces are small enough to penetrate human tissues, where they could trigger immune reactions.

Microplastic pollution is mostly created by the disintegration of plastic litter and appears to be ubiquitous across the planet. Researchers find microplastics everywhere they look; in the air, soil, rivers and the deepest oceans around the world. [..] Most food and drink types have not been tested, however, meaning the study only assessed 15% of calorie intake. “We don’t know a huge amount. There are some major data gaps that need to get filled,” said Kieran Cox, at the University of Victoria in Canada, who led the research.

Other foods, such as bread, processed products, meat, dairy and vegetables, may well contain just as much plastic, he said. “It is really highly likely there is going to be large amounts of plastic particles in these. You could be heading into the hundreds of thousands.” Some of the best available data is on water, with bottled water containing 22 times more microplastic than tap water on average. A person who only drank bottled water would consume 130,000 particles per year from that source alone, the researchers said, compared with 4,000 from tap water.

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May 232019
 


Leonardo da Vinci The madonna of the carnation1478-80

 

Donald Trump, Nancy Pelosi Warfare Hits New Level (USA Today)
AG Barr Puts Former Intel Bosses Clapper, Brennan On Notice (Brock)
Trump To Declassify “Bucket 5” Russiagate Docs (ZH)
Avenatti Indicted For Defrauding Stormy Daniels, Extorting Nike (ABC)
Inside The Epic Fall Of Michael Avenatti (VF)
Credit-Card Charge-Offs Rise Across Banking System (WS)
The Corporate Maginot Line (Lebowitz)
The Truth About US Inequality (Colombo)
Xi Calls Trade War “New Long March” (R.)
Panasonic, Toshiba Join Firms Stepping Away From Huawei (AFP)
FAA Chief Has No Timetable For Boeing 737 MAX Approval (R.)
UK Government To Lodge Complaint Over UN’s Austerity Report (G.)
Facebook, Instagram and Twitter Are Parasites (Hawley)

 

 

Whoever you favor, it seems obvious that calling for impeaching Trump makes bipartisan work on issues impossible. Pelosi doesn’t do that, but most of her party does.

Donald Trump, Nancy Pelosi Warfare Hits New Level (USA Today)

President Donald Trump’s decision to storm out of an infrastructure meeting with Democrats left lawmakers scrambling to assess whether the fallout would reach other White House priorities, including a pending trade deal with Canada and Mexico that the president hopes will replace NAFTA. Fuming about longstanding Democratic investigations, Trump refused to shake hands with Democrats Wednesday and walked out of a meeting, prompting House Speaker Nancy Pelosi to accuse the president of throwing “a temper tantrum for us all to see.” Trump disputed the characterization in a tweet late Wednesday. “This is not true. I was purposely very polite and calm, much as I was minutes later with the press in the Rose Garden,” Trump wrote. “Can be easily proven. It is all such a lie!”


Trump has already indicated he’s prepared to push most of his legislative agenda off until after the 2020 election, a recognition that Democrats and Republicans were unlikely to reach consensus on much of anything as nearly two dozen Democratic presidential candidates barnstorm early primary states in the hunt for the nomination. Trump appeared to further close the door on bipartisan agreement with a hastily called statement Wednesday in the Rose Garden in which he indicated Washington could not be on an “investigations” track while also pursuing legislation. “Let them play their games. We’re going to go down one track at a time,” Trump said of Democrats. “Let them finish up. And we’ll be all set.”

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Kevin R. Brock, former assistant director of intelligence for the FBI, was an FBI special agent for 24 years and principal deputy director of the National Counterterrorism Center (NCTC).

AG Barr Puts Former Intel Bosses Clapper, Brennan On Notice (Brock)

Attorney General William Barr has signaled that his interest in examining the origins of the investigation into the Trump campaign extends beyond whether the FBI operated “by the book,” as former FBI Director James Comey asserts. Barr also wants to understand the role that the larger intelligence community, or IC, may have played in all of this. Barr has thrown punches that have left an interesting mix of characters with a standing eight count. Certain eyes around D.C. are a little glassy right now. Barr’s words and actions are telling. First, he raised the concern that the Trump campaign was “spied” upon. His use of the word “spying” appears more calculated than casual. The wailing and gnashing of teeth that followed is also telling.

“The FBI doesn’t spy” became the sputtering counter-refrain of those trying to mask their nervousness. It’s a fair point that’s beside the point. The FBI is charged with acting under strict legal restrictions and court orders. Spying is not a term traditionally associated with those activities. But it also misses the point Barr appears to be making. The IC does spy; that’s what they do. Barr may have been referring less to the FBI and more to the IC’s possible murky involvement. This seems to be validated by Barr’s second haymaker in as many weeks: his appointment of a surrogate investigator, U.S. Attorney John Durham.

Why would the attorney general add a third investigation to those under way by Department of Justice Inspector General Michael Horowitz and U.S. Attorney John Huber? Because those investigations are focused on the FBI. Durham’s assignment is not similarly constrained; his marching orders appear broader. Through Durham, Barr can start dusting for fingerprints across the government, not just the FBI. The squirming has begun.

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Wonder what will be kept secret.

Trump To Declassify “Bucket 5” Russiagate Docs (ZH)

As Congressional Democrats insist on conducting post-Mueller probes into President Trump and those around him, much of the recent infighting and backpedaling we’ve seen from former Obama intel chiefs is starting to make sense. Appearing with Fox News’s Sean Hannity Tuesday night, The Hill’s John Solomon revealed that according to his sources (and Hannity’s as well), President Trump will begin declassifying ‘Russiagate’ documents in the next 6-7 days. Among those will be the so-called “Bucket Five” – documents which were originally presented to the Gang of Eight in 2016, which included everything the FBI and DOJ used against Trump campaign aide Carter Page – including the FISA surveillance application and its underlying exculpatory intelligence documents which the FISA court may have never seen.

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The MSM’s favorite boy. What a story. He even forged Stormy Daniels’ signature. Tried to shake down Nike for $20 million. He could spend the rest of his life in jail.

Avenatti Indicted For Defrauding Stormy Daniels, Extorting Nike (ABC)

Federal prosecutors in New York charged Michael Avenatti with additional financial crimes Wednesday, including allegedly forging the signature of his former client Stormy Daniels and diverting nearly $300,000 owed to her for a book advance into his own account, according to court records filed on Wednesday. Prosecutors said that he then used money he took from Daniels to make monthly payments on his Ferrari, as well as to cover airfare, dry cleaning, hotels and restaurant bills, as well as payroll and insurance costs for his law firm’s employees. The new charges accuse Avenatti of misappropriating money that was supposed to be paid to Daniels when Avenatti was representing the adult film actress in her public battle against President Trump and his former attorney Michael Cohen.


“Avenatti used misrepresentations and a fraudulent document purporting to bear his client’s name and signature to convince his client’s literary agent to divert money owed to Avenatti’s client to an account controlled by Avenatti,” Manhattan U.S. Attorney Geoffrey Berman said in a statement. “Avenatti then spent the money principally for his own personal and business purposes.” Federal prosecutors in Manhattan – who have already accused Avenatti of extortion in a case involving Nike – also indicted him separately on extortion charges in the Nike case on Wednesday.

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Background at Vanity Fair.

Inside The Epic Fall Of Michael Avenatti (VF)

[..] federal prosecutors in Los Angeles filed a 197-page complaint accusing him of wire and bank fraud, in which the office detailed allegations of Avenatti misappropriating client settlement money for personal use (the receipts were gaudy: $216,720 to a Neiman Marcus, six figures to a Porsche dealership, and $68,500 at a luxury watch store). The complaint also claimed that Avenatti defrauded a bank by submitting false tax returns in order to obtain millions of dollars in loans. A few weeks later, on April 11, federal officials in California handed down a 36-count indictment, including 19 tax-related charges, 10 counts of wire fraud, 4 counts of bankruptcy fraud, and 2 bank-fraud charges. Avenatti had “[taken] money from one scheme and [used] it to lull clients, to string them along, to prevent them from going to authorities and [took] money from different pots as needed.”


One such client was a paraplegic man who had reached a $4 million agreement to settle a case related to his injuries but had not received the money. Avenatti allegedly deposited some of the settlement into a personal account associated with his car-racing team. Avenatti pleaded not guilty. He would not get into specifics about the case, but told me, “I look forward to all of the documents and all of the facts coming to light when it comes to the allegations set forth.” He noted: “The facts, in reality, are not as clear-cut as the government has made them out to be.”

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Are we about to see bank failures again?

Credit-Card Charge-Offs Rise Across Banking System (WS)

In the first quarter, the credit-card “charge-off” rate at the 4,650 or so smaller US commercial banks – all banks other than the largest 100 banks – ticked down to 7.37%, the sixth quarter in a row above 7%. During the peak of the Financial Crisis, the charge-off rate at these banks was above 7% only four quarters, but not in a row, topping out at 8.9%. These smaller banks have taken a lot of risk in their credit card strategies in recent years, going aggressively after subprime customers that had run out of luck at the largest banks. The credit-card charge off rate at the largest 100 banks rose to 3.78%, the highest since the first quarter of 2013. For all commercial banks combined, the charge-off rate rose to 3.83%, the highest since the fourth quarter 2012. The largest banks have learned a costly lesson during the Financial Crisis, when they got hammered with double-digit charge-off rates and have since focused on customers with lower risk profiles. And yet, slowly but surely, credit card charge-offs are rising across the board:

These data points that the Federal Reserve Board of Governors reported Tuesday afternoon are another warning in consumer land where serious auto-loan delinquencies, driven by subprime loans, have reached Q3 2009 levels. Credit cards have not yet reached this stage, but problems are beginning to pile up. A credit card loan is deemed “delinquent” when it is 30 days or more past due. Balances are removed from the delinquency basket when the customer cures the delinquency, or when the bank “charges off” the delinquent balance (net of whatever it was able to recover) against its loan loss reserves. The charge-off rate is figured as a percent of average credit-card balances, and is annualized.


The delinquency rate on credit-card loan balances at commercial banks other than the largest 100 banks declined to 5.43%, after having spiked to 6.2% in the third quarter. During peak-Financial Crisis, the delinquency rate at these smaller banks topped out at 5.9%. So these smaller banks got walloped last year, and they’re now scrambling to clean up, and tighten the lending standards.

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Remember AAA? Guess where your pension fund is invested today.

The Corporate Maginot Line (Lebowitz)

Since the post-financial crisis era began more than a decade ago, record low-interest rates and the Fed’s acquisition of $4 trillion of the highest quality fixed-income assets has led investors to scratch and claw for any asset, regardless of quality, offering returns above the rate of inflation. Financial media articles and Wall Street research discussing this dynamic are a dime-a-dozen. What we have not heard a peep about, however, are the inherent risks within the corporate bond market that have blossomed due to the way many corporate debt investors are managed and their somewhat unique strategies, objectives, and legal guidelines.

[..] Often overlooked, the bifurcation of investor limits and objectives makes an analysis of the corporate bond market different than that of the equity markets. The differences can be especially interesting if a large number of securities traverse the well-defined BBB-/BB+ “Maginot” line, a metaphor for expensive efforts offering a false line of security. The U.S. corporate bond market is approximately $6.4 trillion in size. Of that, over 80% is currently rated investment grade and 20% is junk-rated.This number does not include bank loans, derivatives, or other forms of debt on corporate balance sheets.

Since 2000, the corporate bond market has changed drastically in size and, importantly, in credit composition. Over this period, the corporate bond market has grown by 378%, greatly outstripping the 111% growth of GDP. The bar chart below shows how the credit composition of the corporate bond market shifted markedly with the surge in debt outstanding.

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Very long from my friend Jesse. Haven’t had time to read it yet, it’s a huge project. named Explaining Capitalism. Agree with most of what I have seen, but he has to be careful about terminology. Elizabeth Warren is not a far left politician for most people in the world, that’s at best a narrow US view.

Also: a 70% top-tax-rate is not by definition socialist; we know because the US in the 1950s-60s was not a socialist country.

As for wealth redistribution, I’m afraid you can’t escape it, because the whole edifice has gotten so out of whack. Even if you would turn back all the Fed’s failed policies today, you wouldn’t repair the consequences. Call that socialist if you want, but if you don’t do it, all hell will break loose.

The Truth About US Inequality (Colombo)

Rising economic inequality and how to address it has been one of the most important issues in the United States since the Great Recession ended in 2009. Rising inequality has spurred a powerful left-wing economic movement that kicked off with Occupy Wall Street in 2011, led to the 2016 presidential campaign of socialist Bernie Sanders (which was very popular with young Americans), and has now contributed to the rise and growing clout of far-left politicians including Elizabeth Warren and millennial socialist Alexandria Ocasio-Cortez, who are both calling for wealth redistribution policies. At the core of this left-wing economic movement is a growing disbelief and distrust in capitalism itself, as well as the belief that an excessive rich-poor gap is an inevitable outcome of capitalism.


As a result, young Americans now favor socialism over capitalism. Even 45% of Republican voters support Alexandria Ocasio-Cortez’s 70% top-tax-rate proposal, while “conservative” Fox News host Tucker Carlson threw in the towel on capitalism. The report you are reading – “The Truth About U.S. Inequality” – completely turns the conventional wisdom (i.e., the left-biased explanation) about growing U.S. wealth and income inequality on its head. Here’s the reality in a nutshell: growing U.S. economic inequality is not the fault of capitalism, but the byproduct of unbacked fiat (aka “paper”) currency, central banking/the Federal Reserve, and a massive wealth bubble that has been inflated by the Fed. Instituting free market capitalism and sound money is actually the only solution to America’s growing economic inequality.

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Still longing back to Mao.

Xi Calls Trade War “New Long March” (R.)

China must prepare for difficult times as the international situation is increasingly complex, President Xi Jinping said in comments carried by state media on Wednesday, as the U.S.-China trade war took a mounting toll on tech giant Huawei. The world’s two largest economies have escalated tariff increases on each other’s imports after talks broke down to resolve their dispute, and the acrimony has intensified since Washington last week blacklisted Chinese telecom equipment company Huawei. The listing, which curbs Huawei’s access to U.S.-made components, is a potentially devastating blow for the company that has rattled technology supply chains and investors, and saw several mobile carriers on Wednesday delay the launch of new Huawei smartphone handsets.


During a three-day trip this week to the southern province of Jiangxi, a cradle of China’s Communist revolution, Xi urged people to learn the lessons of the hardships of the past. “Today, on the new Long March, we must overcome various major risks and challenges from home and abroad,” state news agency Xinhua paraphrased Xi as saying, referring to the 1934-36 trek of Communist Party members fleeing a civil war to a remote rural base, from where they re-grouped and eventually took power in 1949. “Our country is still in a period of important strategic opportunities for development, but the international situation is increasingly complicated,” he said. “We must be conscious of the long-term and complex nature of various unfavorable factors at home and abroad, and appropriately prepare for various difficult situations.”

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Feels like this is going to take a long time.

Panasonic, Toshiba Join Firms Stepping Away From Huawei (AFP)

Japan’s Panasonic said Thursday it would stop supplying some components to Huawei, joining a growing list of firms distancing themselves from the Chinese telecoms giant after a US ban over security concerns. Japan’s Toshiba also announced it was temporarily halting shipments to Huawei to check whether US-made parts were involved, in order to comply with Washington’s new restrictions. The moves came a day after major Japanese and British mobile carriers said they would delay releasing new Huawei handsets, upping the pressure on the world’s second-largest smartphone manufacturer.


In an official statement emailed to AFP, Panasonic said it had announced in an “internal notification” that it would “suspend transactions with Huawei and its 68 affiliates that were banned by the US government”. It declined to comment on “other transactions that are not banned by the US”. Asked about its opinion about the news, Huawei pointed to a statement on Panasonic’s Chinese website that said the firm was supplying Huawei “normally” and doing so “strictly abiding by the relevant laws and regulations of countries and regions where Panasonic is present”.

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Loud calls for simulators. Which don’t exist. First one to be delivered by December. This ain’t over.

FAA Chief Has No Timetable For Boeing 737 MAX Approval (R.)

The acting head of the Federal Aviation Administration said on Wednesday he does not have a specific timetable to approve Boeing Co’s 737 MAX for flight after two fatal crashes since October prompted the plane to be grounded worldwide. The FAA is meeting with more than 30 international air regulators including China, the European Union, Brazil and Canada on Thursday to discuss a software fix and new pilot training that Boeing has been developing to ensure the jets are safe to fly. “It’s a constant give and take until it is exactly right,” Deputy FAA Administrator Dan Elwell told reporters of the discussions with Boeing. “It’s taking as long as it takes to be right,” he said, adding: “I’m not tied to a timetable.”

[..] Asked if it is realistic that the 737 MAX could be flying again by August, Elwell declined to be specific. “If you said October I wouldn’t even say that, only because we haven’t finished determining exactly what the training requirements will be,” Elwell said. “If it takes a year to find everything we need to give us the confidence to lift the (grounding) order so be it.” Elwell said he plans to share the FAA’s “safety analysis that will form the basis for our return to service decision process” on Thursday. But he said the agency is still waiting for Boeing to formally submit the software upgrade for approval, and emphasized the FAA has not decided on the revised training requirements, including whether to require simulator training.

Elwell rejected any idea that he was trying to win consensus with international regulators over the path to re-approving the MAX at the meeting. “We have to be the first to lift the order. We are the state of design,” he said. [..] Foreign regulators have signaled disagreements over measures to end the grounding, with Canadian Transport Minister Marc Garneau calling in April for pilots to receive simulator training for the MAX, rather than just computer courses. Canada and Europe said on Wednesday they would bring back the grounded aircraft on their own terms if their specific concerns are not addressed. “From our point of view, if we all work together and we all reach the same aim, fine. If we don’t, we’ll choose our own time to decide when the planes are safe to fly again,” Canada’s Garneau told Reuters in an interview.

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The Tories are set for historic losses in the EU elections this weekend. They feel the pressure. Getting rid of May won’t solve a thing.

UK Government To Lodge Complaint Over UN’s Austerity Report (G.)

The work and pensions secretary, Amber Rudd, plans to lodge a formal complaint with the UN about the damning report on austerity in Britain by its special rapporteur on extreme poverty, Philip Alston. Rudd will argue that Alston is politically biased and did not do enough research. The minister is seeking guidance from the Foreign Office on the best way to respond after Alston compared her department’s welfare policies to the creation of Victorian workhouses. Alston quoted the 17th-century philosopher Thomas Hobbes to warn that unless austerity was ended and welfare cuts were reversed, millions of poorer Britons faced lives that would be “solitary, poor, nasty, brutish and short”.

The 21-page report said the government appeared unwilling to debate the impact of its austerity policies since 2010, which it said were “in clear violation of the country’s human rights obligations”. Alston accused ministers of “window dressing to minimise political fallout” by insisting the country was enjoying record lows in absolute poverty, children in workless households and unemployment. The “endlessly repeated” mantra about rising employment overlooked that “close to 40% of children are predicted to be living in poverty two years from now, 16% of people over 65 live in relative poverty and millions of those who are in work are dependent upon various forms of charity to cope,” he said. The report will be formally presented to the UN Human Rights Council in Geneva on 27 June.

The government believes Alston, a New York-based human rights lawyer, could not credibly have reached his conclusions after only an 11-day trip to the UK. Last November he visited nine towns and cities in England, Scotland, Northern Ireland and Wales, holding town hall meetings and visiting poverty-related charities and organisations including food banks and youth programmes. Rudd is said to be particularly frustrated by Alston’s accusation that the government was responsible for the “systematic immiseration of a significant part of the British population”. She also believes Alston ventured off his beat by making criticisms about cuts to police numbers and legal aid. In a statement, the government said his report was “a barely believable documentation of Britain based on a tiny period of time spent here” and “a completely inaccurate picture of our approach to tackling poverty”.

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Sen. Josh Hawley, R-Missouri, is on the Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights. He wants Facebook, Instagram and Twitter to disappear completely.

Facebook, Instagram and Twitter Are Parasites (Hawley)

Social media consumers are getting wise to the joke that when the product is free, they’re the ones being sold. But despite the growing threat of consumer exploitation, Washington still shrinks from confronting our social media giants. Why? Because the social giants have convinced the chattering class that America simply can’t do without them. Confront the industry, we’re told, and you might accidentally kill it — and with it, all the innovation it has (supposedly) brought to our society. Maybe. But maybe social media’s innovations do our country more harm than good. Maybe social media is best understood as a parasite on productive investment, on meaningful relationships, on a healthy society.

Maybe we’d be better off if Facebook disappeared. Ask the social giants what it is that they produce for America and you’ll hear grand statements about new forms of human interaction. But ask where their money comes from and you’ll get the real truth. Advertising is what the social giants truly care about, and for an obvious reason. It’s how they turn a profit. And when it comes to making money, they’ve been great innovators. They’ve designed platforms that extract massive amounts of personal data without telling consumers, then sell that data without consumers’ permission.

And in order to guarantee an audience big enough to make their ads profitable, big tech has developed a business model designed to do one thing above all: addict. Facebook, Twitter, Instagram — they devote massive amounts of money and the best years of some of the nation’s brightest minds to developing new schemes to hijack their users’ neural circuitry. That’s because social media only works — to make money, anyway — if it consumes users’ time and attention, day after day. It needs to replace the various activities we enjoyed and did perfectly well before social media existed.

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May 172019
 
 May 17, 2019  Posted by at 9:47 am Finance Tagged with: , , , , , , , , , , , ,  


Carl Bloch The transfiguration c1865

 

Chelsea Manning Jailed Again For Refusing To Testify Against WikiLeaks (RT)
The Revelations of WikiLeaks: No. 3—The Most Extensive Classified Leak Ever
The Liberal Embrace of War (Matt Taibbi)
UK-US Row Over Iran Intel Unleashes Storm Of Behind The Scenes Infighting (ZH)
FBI-CIA Dispute Erupts Over Whether Comey Or Brennan Pushed Steele Dossier (ZH)
A World Aching For Peace & Stability Can No Longer Afford NATO (Wight)
Brexit Talks About To Fail As May’s Premiership Fades (R.)
How Much Was Pilot Error A Factor In The Boeing 737 MAX Crashes? (ST)
Boeing Faces a Possible Legal Nightmare With Airlines for 737 MAX (TPG)
US Must Break Up Facebook ‘Monopoly’ (FT Op-Ed)
Huawei’s Chip Maker Says It Has Long Been Preparing For US Ban Scenario (R.)
Greek Austerity Policy ‘Proven To Be Right,’ Says Merkel (K.)
Tower Of London Saved From Prophesy As First Ravens In 30 Years Hatch (Tel.)

 

 

“I would rather starve to death than to change my opinion in this regard.”

They have 60 days from Assange’s arrest to make her talk.

Chelsea Manning Jailed Again For Refusing To Testify Against WikiLeaks (RT)

A federal judge has ordered Chelsea Manning to be jailed again for refusing to testify in a grand jury probe of Julian Assange, threatening the whistleblower with fines if the defiance continues. Manning says she would rather die. “I would rather starve to death than to change my opinion in this regard. And when I say that, I mean that quite literally,” Manning said during a hearing at a federal courthouse in Virginia on Thursday. The US Army intelligence specialist has already spent seven years behind bars for handing over classified military and diplomatic files to WikiLeaks in 2010, and another 62 days in jail until last week for refusing to testify before another grand jury.

This time, Manning faces a fine of $500 a day if she continues to refuse cooperation after 30 days in jail. The fine will go up to $1,000 a day after two months. “I have never heard of jailing a witness for this long,” former FBI agent and whistleblower Colleen Rowley told RT. If the grand jury term goes on for 18 months, the fines could exceed half a million dollars, she added, calling it “draconian.” Rowley added that the jailing of Manning is either illegal retaliation by the Trump administration, “or the case against Julian Assange is just that weak that they absolutely need Chelsea Manning’s testimony in order to firm up these specious charges.”

[..] The new grand jury subpoena appears to be related to the US prosecution of WikiLeaks publisher Julian Assange, who was arrested last month and is currently awaiting his extradition hearing in the UK. Assange is officially accused of conspiring with Manning to hack into Pentagon computers, while acknowledging the hack never actually happened. “I’ve read the indictment and the affidavit that came with the indictment” against Assange, Manning said on Thursday, “and the case doesn’t make sense, it seems kind of bananas.” If there is already an indictment against Assange, what’s the purpose of another grand jury, Manning asked reporters.

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Where are they now? “WikiLeaks partnered with The New York Times, The Guardian, Der Spiegel, Al Jazeera and Le Monde ..”

The Revelations of WikiLeaks: No. 3—The Most Extensive Classified Leak Ever

For WikiLeaks, 2010 was an exceptionally eventful year. In April the transparency organization released “Collateral Murder,” the video of U.S. Army helicopters as they shot more than a dozen Iraqis in Baghdad. That proved a worldwide shock and put the 4-year-old publisher on the global media map. “Afghan War Diaries,” a cache of 75,000 documents, followed in July. Three months later, on Oct. 22, 2010, WikiLeaks released an even more explosive trove: 391,831 documents and videos it named “Iraq War Logs.” This superseded “Afghan War Diaries” as by far the most extensive leak of classified material in U.S. history. It shone a stark light on the U.S.–led coalition’s conduct in Iraq after its 2003 invasion, when the nation had erupted into a violent sectarian war.

Julian Assange, WikiLeaks founder, said the Logs “constituted the most comprehensive and detailed account of any war ever to have entered the public record.” The source for the “Iraq War Logs” was once again Chelsea Manning, who by then was in a military prison awaiting trial on charges connected to “Collateral Murder” that wound up including 22 counts of theft, assisting the publication of classified intelligence and aiding the enemy. With the publication of the “Iraq War Logs,” WikiLeaks disgorged an unprecedented profusion of documents, military reports and videos. The Logs cover the six-year period from Jan. 1, 2004, (a matter of months after the 2003 invasion) to Dec. 31, 2009.

WikiLeaks partnered with The New York Times, The Guardian, Der Spiegel, Al Jazeera and Le Monde to disseminate the Iraq Logs. Taken together, the Logs portray Iraq under allied occupation as the scene of lawless mayhem and violence. Codes of conduct were routinely ignored, shootings were often indiscriminate and torture of detainees was regularly treated as acceptable practice. Innocent civilians were under constant threat of U.S.-led coalition gunfire and arrest, interrogation, and mistreatment by allied military units and the Iraqi army and police.

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Americans who want peace have nobody left to talk to.

The Liberal Embrace of War (Matt Taibbi)

The United States has just suspended flights to Venezuela. Per the New York Times: “CARACAS — The United States banned all air transport with Venezuela on Wednesday over security concerns, further isolating the troubled South American nation…” A disinterested historian — Herodotus raised from the dead — would see this as just the latest volley in a siege tale. America has been trying for ages to topple the regime of President Nicholas Maduro, after trying for years to do the same to his predecessor, Hugo Chavez. The new play in the Trump era involves recognizing Juan Guaidó as president and starving and sanctioning the country. Maduro, encircled, has been resisting.

The American commercial news landscape, in schism on domestic issues, is in lockstep here. Every article is seen from one angle: Venezuelans under the heel of a dictator who caused the crisis, with the only hope a “humanitarian” intervention by the United States. There is no other perspective. Media watchdog FAIR just released results of a study of three months of American opinion pieces. Out of 76 editorials in the New York Times, Washington Post, the “big three Sunday morning talk shows” or PBS News Hour, zero came out against the removal of Maduro. They wrote: “Corporate news coverage of Venezuela can only be described as a full-scale marketing campaign for regime change.”

Allowable opinion on Venezuela ranges from support for military invasion to the extreme pacifist end of the spectrum, as expressed in a February op-ed by Dr. Francisco Rodriguez and Jeffrey Sachs called “An Urgent Call for Compromise in Venezuela”: “We strongly urge… a peaceful and negotiated transition of power rather than a winner-take-all game of chicken…” So we should either remove Maduro by force, or he should leave peaceably, via negotiation. These are the options. After the disaster of Vietnam eons ago, American thought leaders became convinced we “lost” in Indochina because of — get this — bad PR. The real lesson in Vietnam should have been that people would pay any price to overthrow a hated occupying force. American think-tankers and analysts however somehow became convinced (and amazingly still are) that the problem was Walter Cronkite and the networks giving up on the war effort.

[..] Earlier this month, onetime fierce Iraq war opponent Rachel Maddow went on TV to embrace John Bolton in a diatribe about how the poor National Security Adviser has been thwarted by Trump in efforts to topple Maduro. “Regardless of what you thought about John Bolton before this, his career, his track record,” Maddow said. “Just think about John Bolton as a human being.” The telecast was surreal. It was like watching Dick Cheney sing “Give Peace a Chance.”

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We already knew that. It’s called pattern recognition: “No – there’s been no increased threat from Iranian-backed forces in Iraq and Syria..”

UK-US Row Over Iran Intel Unleashes Storm Of Behind The Scenes Infighting (ZH)

A new report in Britain’s The Times says the UK’s Ministry of Defense (MoD) is standing by its senior officer in the US-led coalition in Iraq and Syria, who earlier this week publicly contracted the Pentagon and US administration by appearing to dismiss US intelligence claims over the heightened Iran threat. The awkward public exchange unfolded between the US military and its closest allied military coalition force during a Pentagon press conference on Tuesday wherein a top British commander in charge of anti-ISIS coalition forces rebuked White House claims on the heightened Iran threat.

“No – there’s been no increased threat from Iranian-backed forces in Iraq and Syria,” British Army Maj. Gen. Christopher Ghika, a deputy head of the US-led coalition, asserted confidently in a video link briefing from Baghdad to the Pentagon in response to a CNN question. Essentially this meant the powerful number two commander of “Operation Inherent Resolve” Combined Joint Task Force was questioning the entire basis on which the “imminent threats” and “high level of alert” shift in mission readiness decision was made. But now Britain’s Foreign and Commonwealth Office is said to be fuming over the handling of the situation. The public disagreement, quickly picked up in world headlines, and further weakening the White House’s stance on the “Iran threat”, has unleashed a storm of controversy among allies behind the scenes.

The Times report includes the following bombshell details: “Officials from the Foreign and Commonwealth Office are understood to be angry at the MoD’s handling of the situation. The row raises questions about the extent of intelligence that the US has shared with Britain about the alleged threat from Iran. Israeli media reported that the warnings were passed on by Mossad, the Israeli intelligence agency. The US State Department has ordered non-emergency employees to leave Iraq.”

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US intelligence agencies fighting over a fake document.

FBI-CIA Dispute Erupts Over Whether Comey Or Brennan Pushed Steele Dossier (ZH)

A dispute has erupted over whether former FBI Director James Comey or his CIA counterpart, John Brennan, promoted the unverified Steele dossier as the Obama-era intelligence community targeted the Trump campaign. According to Fox News, an email chain exists which indicates that Comey told bureau subordinates that Brennan insisted on the dossier’s inclusion in the intelligence community assessment (ICA) on Russian interference. Also interesting is that the dossier was referred to as “crown material” in the emails – a possible reference to the fact that Steele is a former British spy. In a statement to Fox, however, a former CIA official “put the blame squarely on Comey.”


“Former Director Brennan, along with former [Director of National Intelligence] James Clapper, are the ones who opposed James Comey’s recommendation that the Steele Dossier be included in the intelligence report,” said the official. “They opposed this because the dossier was in no way used to develop the ICA,” the official continued. “The intelligence analysts didn’t include it when they were doing their work because it wasn’t corroborated intelligence, therefore it wasn’t used and it wasn’t included. Brennan and Clapper prevented it from being added into the official assessment. James Comey then decided on his own to brief Trump about the document.”

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Start with ending Russophobia, and take it from there.

A World Aching For Peace & Stability Can No Longer Afford NATO (Wight)

NATO Secretary General Jens Stoltenberg calling for an end to the fighting in Libya is like an arsonist calling for the house he’s just burned to the ground to stop emitting smoke. For this reason it can only be an excess of black humor or wilful amnesia on the part of Mr Stoltenberg that explains his perverse call for this particular conflict to end in this particular country, eight years after it received a prolonged visit from a Western military alliance over which he currently presides. Along with recent NATO exercises in Estonia, involving 9,000 troops operating just 15km from Russia’s border, Jens Stoltenberg’s call for a peaceful resolution to the ongoing crisis in Libya suggests that the pride of place above the entrance to NATO headquarters in Brussels should be inscribed in bold letters with the Orwellian mantra of ‘War is peace. Freedom is slavery’.

Because ever since the demise of the Soviet Union, NATO has been engaged in a perennial quest for meaning and relevance, which means to say for opportunities to unleash its democracy missiles and drop its democracy bombs. It is a quest that has and continues to involve ideologues in the media, neocon think tanks, and governments going out of their way to convince people across Europe and the US that without NATO manning the ramparts of Western civilization, the barbarians located to the North, South, East and West of them will come and destroy everything they hold dear.

Stripped of obfuscation, what we have here is a tawdry and base exercise in scaremongering; its aim to inculcate the belief that Russia, Iran, China, North Korea, Venezuela (you can take your pick) is their enemy and a threat to their security. Thus it is that the extent to which people living in the West refuse to internalise the propaganda of their own ruling class and its functionaries is determined by their ability to see the world as it truly is, rather than continue to exist in the darkened room of Western exceptionalism.

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Tories see big losses in the polls. Boris to the rescue. But pushing through Brexit at this point is going to get real ugly.

Brexit Talks About To Fail As May’s Premiership Fades (R.)

Nearly three years after the United Kingdom unexpectedly voted in a referendum to leave the EU, it is still unclear how, when or if it will ever indeed quit the European club it joined in 1973. Brexit talks between May’s Conservatives and the opposition Labour Party are about to close without an agreement, the BBC said, hours after May agreed on Thursday to set out a timetable for her departure in early June. “If the talks are not going anywhere, from my point of view that leads to only one conclusion,” Hilary Benn, the chairman of parliament’s Brexit committee, told BBC radio. “There are only two ways out of the Brexit crisis that we’ve got: either parliament agrees a deal or we go back to the British people and ask them to make the choice.”


After the Brexit deal that May struck with Brussels was defeated a third time by parliament, she announced on April 2 that she would open talks with Labour. But the two parties have failed to agree on major issues such as the opposition party’s demand for a post-Brexit customs union. Labour leader Jeremy Corbyn, a veteran socialist who voted against membership of the EU in 1975, has said that May refused to budge on key demands. May’s hands have been tied, knowing that to make concessions to Labour would lead to fury in her divided party. Labour has feared that any compromises on issues such as workers’ rights would be torn up by May’s successor. The two party leaders will now move to a second phase, aimed at agreeing on a process for parliamentary votes designed to find a consensus, the BBC said.

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Boeing blames the pilots. Easy because they’re dead.

How Much Was Pilot Error A Factor In The Boeing 737 MAX Crashes? (ST)

In his opening statement Wednesday at the House Aviation subcommittee hearing on the 737 MAX in Washington, D.C., the lead Republican congressman blamed errors by the Indonesian and Ethiopian pilots for the two deadly MAX crashes in those countries. “Pilots trained in the United States would have successfully been able to handle” the emergencies on both jets, said Rep. Sam Graves of Missouri, ranking member of the House Transportation and Infrastructure Committee. He added that preliminary reports about the accident “compound my concerns about quality training standards in other countries.” Graves was repeating the main points in a report written by two pilots at a major U.S. airline that pointed to pilot error as “the most consequential factor” in both crashes.

Their report was commissioned and paid for by institutional investors with large holdings in Boeing stock. That case for pilot error as the major cause of the crashes seems close to a surrogate for what Boeing has only hinted at, and may be a key part of the manufacturer’s legal defense in liability lawsuits. Yet two flight-simulator sessions replicating the conditions on the doomed flights contradict Graves’ contention that better trained pilots would have escaped disaster. And some Western-trained pilots criticize the report as based on unverified assumptions and minimizing the intense stress Boeing’s runaway flight-control system imposed on the two flight crews.

“I’m disappointed with those who sit in their lofty chairs of judgment and say this wouldn’t have happened to U.S. pilots,” said a veteran captain with a major U.S. airline, who asked not to be named to avoid involving his employer. The flight crew on the March 10 Ethiopian flight faced a barrage of alerts in the flight that lasted just 6 minutes. Those alerts included a “stick shaker” that noisily vibrated the pilot’s yoke throughout the flight, warning the plane was in danger of a stall, which it wasn’t; repeated loud “DON’T SINK” warnings that the jet was too close to the ground; a “clacker” making a very loud clicking sound to signal the jet was going too fast; and multiple warning lights telling the crew the speed, altitude and other readings on their instruments were unreliable.

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Don’t forget: Boeing faces Ralph Nader. And his entire network.

Boeing Faces a Possible Legal Nightmare With Airlines for 737 MAX (TPG)

Boeing could be on the hook for enough to bankrupt a small country — but it the Chicago-based company were found not to bear any responsibility for the issues with the 737 MAX, then it could have to pay nothing, though whoever is found to be at fault would still be liable, of course. If Boeing were found liable, then the court would have to decide the appropriate award Boeing would have to pay out to the airlines — enough to compensate the plaintiff for the damage to its business from lost fares, sunk costs in the defective aircraft, etc.


If, in the least likely but most sensational possibility, Boeing officials are found to have actively covered up a problem with the aircraft in what amounts to a crime, then the plaintiffs would probably be awarded not just compensatory damages but punitive damages — typically three times the amount of the compensatory damages. None of this, however, addresses the likely wrongful-death lawsuits from the families of the passengers who perished in the 737 MAX crashes. In those cases, the airlines and Boeing will probably be sitting on the same side of the courtroom — as co-defendants. But Dedmon stressed that, as the 737 MAX crisis is still unfolding, it’s still hard to speculate where things will go, in the courtroom or outside it. “It’s the tip of the spear,” he said.

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But CIA wants it just the way it is.

US Must Break Up Facebook ‘Monopoly’ (FT Op-Ed)

Facebook’s chief executive Mark Zuckerberg recently called for the US government to be more proactive in regulating social media. His former dorm mate Chris Hughes went a step further last week. Mr Hughes wants to break up the social network he co-founded. The controversies surrounding Facebook point to a broader need for a new competition law. At a time when governments in Europe are already moving against Big Tech’s excesses, the US should take the chance to reform its own outdated rules. In his article, Mr Hughes excoriates Mr Zuckerberg for chasing profits over user security.

The Facebook co-founder is alarmed by Mr Zuckerberg’s ability to decide what millions of people read via the network. Mr Hughes goes on to criticise the US government for its relative inaction, emphasising that fining Facebook or instituting new privacy rules is insufficient. In calling for the company to be broken up, Mr Hughes rejects the school of competition law dominant in the US since the 1980s. This views pricing as the only metric for assessing competition. Such a narrow focus collapses when applied to Facebook and other Big Tech firms, which provide services for “free” in return for taking users’ data, rather than their cash.

Facebook epitomises the dangers of data oligopolies, with its plan to tie WhatsApp, Facebook and Instagram into a single encrypted messaging system. With control of three major platforms, it can use metadata such as contacts or external pages to provide useful data to advertisers and to train algorithms. New competitors without access to these data reservoirs will inevitably struggle to compete. In the past, Big Tech firms have simply acquired them and folded them into their business or copied their ideas at scale. The data rich get data richer, even though there is no apparent cost to consumers under current competition law.

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“HiSilicon has been secretly developing back-up products for years..”

Huawei’s Chip Maker Says It Has Long Been Preparing For US Ban Scenario (R.)

Huawei Technologies’ chip arm HiSilicon said on Friday it has long been prepared for the “extreme scenario” that it could be banned from purchasing U.S. chips and technology, and is able to ensure steady supply of most products. HiSilicon, which mainly designs chips for Huawei equipment, made the comments in a letter to staff attributed to President He Tingbo dated “the small hours of May 17”, shortly after the United States officially banned Huawei from buying U.S. technology without special approval. The ban has thrown into disarray prospects for sales at some of the largest tech companies and drew a sharp rebuke from Beijing, further ratcheting up tensions over trade.


Huawei confirmed authenticity of the letter seen by Reuters and published by Chinese media on Friday. HiSilicon has been secretly developing back-up products for years in anticipation of the unlikely scenario that Huawei may one day be unable to obtain advanced chips and technology from the United States, He said in the letter. HiSilicon’s efforts have ensured a steady supply and “strategic safety” of most products, He said, adding that Huawei will aim to be technologically self-sufficient. He described HiSilicon’s efforts as a “long march in the history of technology” that would now pay off with the United State’s “crazy decision” that brought this “extreme and dark moment”.

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The currency union is more important than the people. Some mutti. Some union.

Greek Austerity Policy ‘Proven To Be Right,’ Says Merkel (K.)

German Chancellor Angela Merkel has defended austerity policy in Greece and other debt-hit countries in the eurozone, however acknowledging that the people had to shoulder a “considerable” burden. “What counts is that the currency union and the euro were maintained,” Merkel said in an interview with Germany’s Suddeutsche Zeitung. Merkel, who is in her fourth and final term in office, said that reforms in Greece, Ireland, Portugal and Spain “have proven to be right, even if I don’t dispute that the burden for the population was considerable.” Speaking about Europe’s refugee crisis, Merkel said that the problem requires greater burden-sharing among EU members as well as efforts to tackle the roots of the problem.

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Pheww…. Saved by the bell.

Tower Of London Saved From Prophesy As First Ravens In 30 Years Hatch (Tel.)

The Tower of London will be protected from a prophesied demise for years to come, after the first ravens in 30 years were born inside its walls. At least six ravens have been kept at the fortress since the days of King Charles II, who feared the Tower and the kingdom would fall if they were ever allowed to leave. Ruination loomed large last year as the number of legal raven breeders continued to shrink across the UK, making it harder for the ancient quota to be honoured. A new aviary was eventually installed inside the London landmark, into which two breeding ravens – Huginn and Muninn – were brought at the end of last year.


Few expected the couple to be settled in time for the 2019 mating season, but, not without some sense of occasion, new life began emerging on April 23 – St George’s Day. All four chicks have now hatched, the first to do so at the Tower since 1989. They join seven other ravens in addition to the breeding couple and shore up the Tower’s safety for the foreseeable future. Chris Skaife, ravenmaster at the Tower of London, said: “My suspicions were first piqued that we might have a chance of baby chicks when the parents built a huge nest suddenly overnight and then almost immediately the female bird started to sit on it, then on the April 23 I noticed the birds going to the nest with food.”

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May 102019
 


James McNeill Whistler Symphony in White, No. 3 1867

 

US Hikes Tariffs On Chinese Goods, China Says To Strike Back (R.)
Historic Lawsuit Could “Wreak Havoc” On The Leveraged Loan Market (ZH)
The Real Muellergate Scandal (Craig Murray)
From Russiagate to Gunboat Diplomacy (Jacobin)
FBI’s Steele Story Falls Apart (Solomon)
Roger Stone Wins Right To Receive Unredacted Parts of Mueller Report (SC)
Chelsea Manning Released After 2 Months, Might Be Back In Jail In 6 Days (RT)
The Law Being Used to Prosecute Julian Assange Is Broken (Ekeland)
Swedish Prosecutor To Give Decision On Assange Rape Inquiry (G.)
The Revelations of WikiLeaks: No. 2 (Vos)
Facebook Co-Founder Calls For Breakup Of The Company (ZH)
UK Tories Could Come Sixth In European Elections (G.)
America, You Are Fired! (Dmitry Orlov)
Chernobyl Has Become A Refuge For Wildlife 33 Years Later (Conv.)
Ireland Second Country To Declare Climate, Biodiversity Emergency (RTE)

 

 

Keep talking!

US Hikes Tariffs On Chinese Goods, China Says To Strike Back (R.)

U.S. President Donald Trump’s tariff increase to 25% on $200 billion worth of Chinese goods took effect on Friday, and Beijing said it would strike back, ratcheting up tensions as the two sides pursue last-ditch talks to try salvaging a trade deal. China’s Commerce Ministry said it “deeply regrets” the U.S. decision, adding that it would take necessary countermeasures, without elaborating. The hike comes in the midst of two days of talks between top U.S. and Chinese negotiators to try to rescue a faltering deal aimed at ending a 10-month trade war between the world’s two largest economies. Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin talked for 90 minutes on Thursday and were expected to resume talks on Friday.


The Commerce Ministry said that negotiations were continuing, and that it “hopes the United States can meet China halfway, make joint efforts, and resolve the issue through cooperation and consultation”. With no action from the Trump administration to reverse the increase as negotiations moved into a second day, U.S. Customs and Border Protection imposed the new 25% duty on affected U.S.-bound cargoes leaving China after 12:01 a.m. EDT (0401 GMT) on Friday. Goods in the more than 5,700 affected product categories that left Chinese ports and airports before midnight will be subject to the original 10% duty rate, a CBP spokeswoman said.

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Don’t worry, Fed to the rescue.

Historic Lawsuit Could “Wreak Havoc” On The Leveraged Loan Market (ZH)

Ask any banker (or analyst) what the difference is between a junk bond and a loan, and you’ll most likely get a blank start in response: starting with the size of the loan market, which is now virtually identical to that of the high yield bond market, continuing through the standardization of loan terms, the growth of secondary trading, and all the way through to “protections” granted to loan investors, which in an age of exclusively covenant-lite issuance, no longer exist, and one can argue that at least superficially, a loan is effectively the same as a junk bond. And yet, there is one critical difference between the two: junk bonds are securities, while loans aren’t. That difference, however, may not be true for much longer.

As Bloomberg reports, a group suing JPMorgan Chase and other banks over a loan that went sour four years ago is alleging the underwriters engaged in securities fraud. If successful, the article contends correctly, the lawsuit will “radically transform the $1.2 trillion leveraged lending market” because should the plaintiff ultimately prevail in arguing that loans are de facto securities, it would dramatically alter how American companies raise debt, according to two industry groups that filed a brief supporting the defendants’ argument last week. “There are absolutely enormous market consequences if a court determines that leveraged loans are securities,” J. Paul Forrester, a partner at Mayer Brown told Bloomberg. “Leveraged loans and lenders would be potentially subject to the same offering and disclosure requirements as securities and would face the same regulatory oversight and enforcement consequences.”

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Well, whaddaya know, there are people who agree with me… The VIPS, Assange, it’s all I’ve been talking about. I said Mueller is a coward and a liar, Murray calls him deeply corrupt. Same difference.

The Real Muellergate Scandal (Craig Murray)

Robert Mueller is either a fool, or deeply corrupt. I do not think he is a fool. I did not comment instantly on the Mueller Report as I was so shocked by it, I have been waiting to see if any other facts come to light in justification. Nothing has. I limit myself here to that area of which I have personal knowledge – the leak of DNC and Podesta emails to Wikileaks. On the wider question of the corrupt Russian 1% having business dealings with the corrupt Western 1%, all I have to say is that if you believe that is limited in the USA by party political boundaries, you are a fool. On the DNC leak, Mueller started with the prejudice that it was “the Russians” and he deliberately and systematically excluded from evidence anything that contradicted that view.

Mueller, as a matter of determined policy, omitted key steps which any honest investigator would undertake. He did not commission any forensic examination of the DNC servers. He did not interview Bill Binney. He did not interview Julian Assange. His failure to do any of those obvious things renders his report worthless. There has never been, by any US law enforcement or security service body, a forensic examination of the DNC servers, despite the fact that the claim those servers were hacked is the very heart of the entire investigation. Instead, the security services simply accepted the “evidence” provided by the DNC’s own IT security consultants, Crowdstrike, a company which is politically aligned to the Clintons.

That is precisely the equivalent of the police receiving a phone call saying: “Hello? My husband has just been murdered. He had a knife in his back with the initials of the Russian man who lives next door engraved on it in Cyrillic script. I have employed a private detective who will send you photos of the body and the knife. No, you don’t need to see either of them.” There is no honest policeman in the world who would agree to that proposition, and neither would Mueller were he remotely an honest man.

[..] Mueller’s failure to examine the servers or take Binney’s evidence pales into insignificance compared to his attack on Julian Assange. Based on no conclusive evidence, Mueller accuses Assange of receiving the emails from Russia. Most crucially, he did not give Assange any opportunity to answer his accusations. For somebody with Mueller’s background in law enforcement, declaring somebody in effect guilty, without giving them any opportunity to tell their side of the story, is plain evidence of malice. Inexplicably, for example, the Mueller Report quotes a media report of Assange stating he had “physical proof” the material did not come from Russia, but Mueller simply dismisses this without having made any attempt at all to ask Assange himself.

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Where would US media be without Russia?

From Russiagate to Gunboat Diplomacy (Jacobin)

One of the things Russiagate skeptics found unsettling about the frenzy over supposed “collusion” was that it made war more likely. Not only did the now-debunked conspiracy theories and resulting political climate push officials into a more aggressive posture toward Russia, but once the Kremlin was returned to its status as the foreign policy elite’s Big Bad, it was easy to imagine a situation where the threat of a Russian bogeyman could be used to justify any number of unrelated foreign adventures. This appears to be exactly what’s happening with Venezuela right now. First there was Fareed Zakaria, who two months ago tried to goad Trump into attacking Venezuela by pointing to Russia’s support for Maduro.

“Putin’s efforts seem designed to taunt the United States,” he said (it might also have something to do with the billions of dollars Russia sank into the country), making reference to the Monroe Doctrine. He asked if Washington would “allow Moscow to make a mockery of another American red line,” warning that “if Washington does not back its words with deeds” the country could become another Syria. Zakaria concluded: “will Venezuela finally be the moment when Trump finally ends his appeasement?” More recently, Secretary of State Mike Pompeo charged that Russia had “invaded” Venezuela before claiming the Kremlin had dissuaded Maduro from fleeing the country at the last moment, something Pompeo has provided no evidence for but much of the media has treated as fact since.

National Security Advisor John Bolton has said that “this is our hemisphere” and “not where the Russians ought to be interfering.” Democratic Sen. Doug Jones echoed this sentiment on CNN, praising the Trump administration for saying “all options are on the table” to deal with Venezuela, something he suggested may have to be acted on “if there is some more intervention [by] Russia.” The national press, taking a break from warning about Trump being a dangerous authoritarian, has been demanding to know why he hasn’t been more aggressive toward the country over this. Particularly shameless was Florida Rep. Mario Díaz-Balart, who went on Tucker Carlson’s show to peddle half-baked innuendo as brazen as anything claimed in the lead up to the Iraq War. If Maduro’s government survived, he claimed, it would be “a green light, an open door for the Russians and for the Chinese and for others to increase their activity against our national security interest right here in our hemisphere.”

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John Solomon digs on. “She quoted Steele as saying, “Payments to those recruited are made out of the Russian Consulate in Miami..” [..] “It is important to note that there is no Russian consulate in Miami.”

FBI’s Steele Story Falls Apart (Solomon)

The FBI’s sworn story to a federal court about its asset, Christopher Steele, is fraying faster than a $5 souvenir T-shirt bought at a tourist trap. Newly unearthed memos show a high-ranking government official who met with Steele in October 2016 determined some of the Donald Trump dirt that Steele was simultaneously digging up for the FBI and for Hillary Clinton’s campaign was inaccurate, and likely leaked to the media. The concerns were flagged in a typed memo and in handwritten notes taken by Deputy Assistant Secretary of State Kathleen Kavalec on Oct. 11, 2016. Her observations were recorded exactly 10 days before the FBI used Steele and his infamous dossier to justify securing a Foreign Intelligence Surveillance Act (FISA) warrant to spy on Trump campaign adviser Carter Page and the campaign’s contacts with Russia in search of a now debunked collusion theory.

It is important to note that the FBI swore on Oct. 21, 2016, to the FISA judges that Steele’s “reporting has been corroborated and used in criminal proceedings” and the FBI has determined him to be “reliable” and was “unaware of any derogatory information pertaining” to their informant, who simultaneously worked for Fusion GPS, the firm paid by the Democratic National Committee (DNC) and the Clinton campaign to find Russian dirt on Trump. That’s a pretty remarkable declaration in Footnote 5 on Page 15 of the FISA application, since Kavalec apparently needed just a single encounter with Steele at State to find one of his key claims about Trump-Russia collusion was blatantly false.

In her typed summary, Kavalec wrote that Steele told her the Russians had constructed a “technical/human operation run out of Moscow targeting the election” that recruited emigres in the United States to “do hacking and recruiting.” She quoted Steele as saying, “Payments to those recruited are made out of the Russian Consulate in Miami,” according to a copy of her summary memo obtained under open records litigation by the conservative group Citizens United. Kavalec bluntly debunked that assertion in a bracketed comment: “It is important to note that there is no Russian consulate in Miami.”

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What if the relevant sections did get redacted?

Roger Stone Wins Right To Receive Unredacted Parts of Mueller Report (SC)

A federal judge in Washington ordered the Department of Justice to turn over any unredacted sections of Special Counsel Robert Mueller’s report on Russian activities during the 2016 presidential campaign that relate to Roger Stone. U.S. District Judge Amy Berman Jackson gave the prosecutors until Monday to “submit unredacted versions of those portions of the report that relate to defendant Stone and/or ‘the dissemination of hacked materials.” Judge Jackson would review the material in private to see if it is relevant to the case and to decide whether Stone and his defense team will have access to the material.

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Is this a game?

Chelsea Manning Released After 2 Months, Might Be Back In Jail In 6 Days (RT)

Whistleblower Chelsea Manning has been released from a Virginia prison where she spent the last 62 days for refusing to testify on her 2010 leak of classified military files before a grand jury. Manning was released from William G. Truesdale Adult Detention Center in Alexandria, Virginia, on Thursday after the term of the grand jury before which she was supposed to testify expired, her legal team said in a statement reported by the Sparrow Project. However, the WikiLeaks whistleblower and activist might soon be locked up again and has already been served with another subpoena, requesting that she testifies before a different set of jurors. “Unfortunately, even prior to her release, Chelsea was served with another subpoena.


This means she is expected to appear before a different grand jury, on Thursday, May 16, 2019, just one week from her release today,” her lawyers said. Despite having spent over two months behind bars, Manning has no intention to cave in to the demand and make herself available to a secret grand jury’s questioning, according to the statement. “Chelsea will continue to refuse to answer questions, and will use every available legal defense to prove to District Judge Trenga that she has just cause for her refusal to give testimony.” Manning insists that she already gave an “exhaustive testimony” on all the matters concerning her disclosure of military documents at a 2013 court martial. In an 8-page declaration filed to the Virginia court on May 6, Manning accused the US government of using the “corrupt and abusive tool” of grand jury to “harass and disrupt political opponents and activists.”

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Taking us back to Aaron Schwartz.

The Law Being Used to Prosecute Julian Assange Is Broken (Ekeland)

[..] the UK courts will evaluate the US’s request to send Assange to Virginia to stand trial in federal court for a single felony charge of conspiracy to commit unauthorized access to a government computer, a violation of the Computer Fraud and Abuse Act (CFAA). After Assange’s arrest, many reached out to ask me about the CFAA. For years, I’ve represented hackers in federal criminal cases nationally involving the CFAA, including Lauri Love, whom the US unsuccessfully tried to extradite from the UK. The US indicted Love in three separate federal courts in New York, New Jersey, and Virginia, for hacking of a number of government sites including NASA, the FBI, the United States Sentencing Commission, and the Bureau of Prisons.

This was part of #OpLastResort, in protest of the CFAA prosecution and death of computer science pioneer Aaron Swartz, whose suicide in 2013 was widely viewed as resulting from a draconian CFAA prosecution. Whether intended or not, the CFAA makes it easy for a prosecutor to bring felony computer crime charges even when there’s little or no harm. [..] The core problem with the Computer Fraud and Abuse Act is that it doesn’t clearly define one of the central things it prohibits: unauthorized access to a computer. The courts across the country aren’t any help on this front, issuing conflicting decisions both with other jurisdictions and often within their own. Under the CFAA, what is a felony in one jurisdiction is legal in another.

This lack of definitional clarity allows prosecutors to charge felonies even when the harms are minimal, questionable, or just political views that DOJ doesn’t like. This is a serious problem, given that much political speech and protest these days is done with computers. And DOJ has previously used the CFAA in a politically charged prosecution. In 2011, DOJ charged the politically outspoken Aaron Swartz under the CFAA for going into an open server closet at MIT, a mecca of modern American hacking, and downloading academic articles—many of which were publicly funded—for public distribution. Even though the extent of any harm was questionable—this was a mere copying of articles—DOJ charged him with felony unauthorized access to a computer, unauthorized damage to a protected computer, felony aiding and abetting of both, and wire fraud.

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All Swedes need to be deeply ashamed. Is it too much to ask of you to let your voices be heard? All I hear is silence.

Swedish Prosecutor To Give Decision On Assange Rape Inquiry (G.)

Sweden’s state prosecutor will announce on Monday whether she will reopen a preliminary investigation into a rape allegation against Julian Assange. The WikiLeaks founder is in prison in Britain after he was arrested last month after seven years holed up in the Ecuadorian embassy in London. The US wants to extradite him in a case relating to WikiLeaks’ massive release of sensitive military and diplomatic documents. Sweden’s legal tussle with the Australian Assange has dragged on for nearly a decade after he was accused by two Swedish women of sexual assault and rape in 2010.


The statute of limitations ran out on the sexual assault allegations in 2015 and the prosecutor dropped the investigation into the rape allegation in 2017 because Assange was in the Ecuadorian embassy, where he had taken refuge to avoid extradition. The prosecutor said at the time the investigation could be reopened if the situation changed. After Assange’s arrest last month, the lawyer representing the woman who accused Assange of rape asked for the investigation to be reopened. “At [a] press conference, the prosecutor will announce her decision, which will formally be made immediately before the press conference,” the Swedish prosecution authority said in a statement.

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Elizabeth Lea Vos is compiling a history of all WikiLeaks files.

The Revelations of WikiLeaks: No. 2 (Vos)

Three months after it published the “Collateral Murder” video, WikiLeaks on July 25, 2010 released a cache of secret U.S. documents on the war in Afghanistan. It revealed the suppression of civilian casualty figures, the existence of an elite U.S.-led death squad and the covert role of Pakistan in the conflict, among other revelations. The publication of the Afghan War Diaries helped set the U.S. government on a collision course with WikiLeaks founder Julian Assange that ultimately led to his arrest last month. The war diaries were leaked by then-Army-intelligence-analyst Chelsea Manning, who had legal access to the logs via her Top Secret clearance.

Manning only approached WikiLeaks, after studying the organization, following unsuccessful attempts to leak the files to The New York Times and The Washington Post. A major controversy surrounding the Diaries’ release were allegations that operational details were made public to the Taliban’s battlefield advantage and that U.S. coalition informants’ lives were put at risk by publishing their names. Despite a widely-held belief that WikiLeaks carelessly publishes un-redacted documents, only 75,000 from a total of more than 92,201 internal U.S. military files related to the Afghan War (between 2004 and 2010) were ultimately published.

WikiLeaks explained that it held back so many documents because Manning had insisted on it: “We have delayed the release of some 15,000 reports from the total archive as part of a harm minimization process demanded by our source.” Manning testified at her 2013 court-martial that the files were not “very sensitive” and did not report active military operations.

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Facebook: We’re Not A Monopoly, We’re “A Successful American Company”

Chris Hughes, Zuck’s former roommate, said in a NYT op-ed that Facebook should be split up. The reaction: no, we’re just successful, but we do need new laws, and Zuck himself has some great ideas for that.

Facebook Co-Founder Calls For Breakup Of The Company (ZH)

[..] would-be rivals can’t raise the money to take on Facebook. Nobody would finance them knowing that if they get too powerful, Facebook will run them out of business. Hughes doesn’t blame Zuckerberg for this; after all, he’s simply demonstrating the “virtuous hustle of a talented entrepreneur.” But this is exactly why the government should feel obligated to step in and “break up Facebook’s monopoly and regulate the company to make it more accountable to the American people.” Specifically, Hughes believes the FTC should work with the DoJ to undo the Instagram and Whatsapp acquisitions. There is some precedent for this, he says.

How would a breakup work? Facebook would have a brief period to spin off the Instagram and WhatsApp businesses, and the three would become distinct companies, most likely publicly traded. Facebook shareholders would initially hold stock in the new companies, although Mark and other executives would probably be required to divest their management shares. Until recently, WhatsApp and Instagram were administered as independent platforms inside the parent company, so that should make the process easier. But time is of the essence: Facebook is working quickly to integrate the three, which would make it harder for the F.T.C. to split them up. For what it’s worth, Hughes acknowledges his complicity in creating Facebook, and the fact that he didn’t speak out – or even question the company’s monopoly power – until after Cambridge Analytica.

But that’s the past: Already, support for breaking up big-tech monopolies is gaining traction among Democrats and Republicans alike. The fact that Hughes has decided to criticized his former co-founder (and one-time college buddy) in such a public forum might seem galling to some: After all, Hughes was transformed into a millionaire 500 times over largely because he had the good fortune of being assigned to the same dorm room as Zuckerberg at Harvard. But regardless, now that Hughes has broken the seal, will he inspire more of Facebook’s co-founders and former top employees speak out. It’s worth noting that in March, Chris Cox, one of Zuckerberg’s top deputies and a longtime FB executive, left the company. Cox’s decision to leave was reportedly due to ‘disagreement’s’ that were alluded to in a blog post.

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Torn between multiple lovers. The UK governed by a fringe party.

UK Tories Could Come Sixth In European Elections (G.)

Conservative officials fear the party could come sixth in the European elections, with their support plummeting to single digits. Candidates running in the election said the party was “almost in denial” that the poll was happening and continued to insist they would not need to take up their seats in the European parliament, despite fading prospects for a cross-party deal with Labour that would enable Brexit to happen before 2 July. The fears of a dismal performance have been stoked by the fact that the party plans to spend no money on candidate campaigning, will not publish a manifesto and is refusing to hold a launch.


One MEP said candidates were funding their campaigns out of their own pockets, unlike previous years when there was a central pot of funding available. They have been told they are allowed to have their own regional manifestos, but many are not bothering, and there will be no central party manifesto. “The thinking is that if we make no effort then we will have an excuse for having done so badly. But it is seriously embarrassing,” said one MEP. Another Conservative source said internal data showed the party could do worse than the Brexit party, Labour, the Lib Dems, Change UK and even potentially the Greens, with support at less than 10%. That would translate to only a handful of seats, down from the current 22.

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Nuclear is set to make a come back, because it is the only option to maintain our complex societies. He may have a point there. The ultimate desperation.

America, You Are Fired! (Dmitry Orlov)

Some ironies are just too precious to pass by. The 2016 US presidential elections gave us Donald Trump, a reality TV star whose famous tag line from his show “The Apprentice” was “You are fired!” Focus on this tag line; it is all that is important to this story. Some Trump Derangement Disorder sufferers might disagree. This is because they are laboring under certain misapprehensions: that the US is a democracy; or that it matters who is president. It isn’t and it doesn’t. By this point, the choice of president matters as much as the choice of conductor for the band that plays aboard a ship as it vanishes beneath the waves. I have made these points continuously since before Trump got into office. Whether or not you think that Trump was actually elected, he did get in somehow, and there are reasons to believe that this had something to do with his wonderfully refreshing “You are fired!” tag line.

[..] Financially ruinous and generally nonsensical schemes such as tar sands, shale oil and industrial-scale photovoltaics, wind generation and electric cars will only accelerate the process of sorting nations into energy haves and energy have-nots, with the have-nots wiping themselves out sooner rather than later. Leaving aside various fictional and notional schemes (nuclear fusion, space mirrors, etc.) and focusing just on the technologies that already exist, there is only one way to maintain industrial civilization, and that is nuclear, based on Uranium 235 (which is scarce) and Plutonium 239 produced from Uranium 238 (of which there is enough to last for thousands of years) using fast neutron reactors. If you don’t like this choice, then your other choice is to go completely agrarian, with significantly reduced population densities and no urban centers of any size.

And if you do like this choice, then you have few alternatives other than to go with the world’s main purveyor of nuclear technology (VVER-series light water reactors, BN-series fast neutron breeder reactors and closed nuclear fuel cycle technology) which happens to be Russia’s state-owned conglomerate Rosatom. It owns over a third of the world nuclear energy market and has a portfolio of international projects stretching far into the future that includes as much as 80% of the reactors that are going to be built. The US hasn’t been able to complete a nuclear reactor in decades, the Europeans managed to get just one new reactor on line (in China) while Japan’s nuclear program has been in disarray ever since Fukushima and Toshiba’s financially disastrous acquisition of Westinghouse. The only other contenders are South Korea and China. Again, if you don’t like nuclear—for whatever reason—then you can always just buy yourself some pasture and some hayfields and start breeding donkeys.

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Nuclear anyone?

Chernobyl Has Become A Refuge For Wildlife 33 Years Later (Conv.)

About 30 researchers from the United Kingdom, Ireland, France, Belgium, Norway, Spain and Ukraine presented the latest results of our work. These studies included work on big mammals, nesting birds, amphibians, fish, bumblebees, earthworms, bacteria and leaf litter decomposition. These studies showed that at present the area hosts great biodiversity. In addition, they confirmed the general lack of big negative effects of current radiation levels on the animal and plant populations living in Chernobyl. All the studied groups maintain stable and viable populations inside the exclusion zone. These studies showed that at present the area hosts great biodiversity.

In addition, they confirmed the general lack of big negative effects of current radiation levels on the animal and plant populations living in Chernobyl. All the studied groups maintain stable and viable populations inside the exclusion zone. A clear example of the diversity of wildlife in the area is given by the TREE project (TRansfer-Exposure-Effects, led by Nick Beresford of the UK’s Centre for Ecology and Hydrology). As part of this project, motion detection cameras were installed for several years in different areas of the exclusion zone. The photos recorded by these cameras reveal the presence of abundant fauna at all levels of radiation. These cameras recorded the first observation of brown bears and European bison inside the Ukrainian side of the zone, as well as the increase in the number of wolves and Przewalski horses.

Our own work with the amphibians of Chernobyl has also detected abundant populations across the exclusion zone, even on the more contaminated areas. Furthermore, we have also found signs that could represent adaptive responses to life with radiation. For instance, frogs within the exclusion zone are darker than frogs living outside it, which is a possible defence against radiation. Studies have also detected some negative effects of radiation at an individual level. For example, some insects seem to have a shorter lifespan and are more affected by parasites in areas of high radiation. Some birds also have higher levels of albinism, as well as physiological and genetic alterations when living in highly contaminated localities. But these effects don’t seem to affect the maintenance of wildlife population in the area.


European bison (Bison bonasus), boreal lynx (Lynx lynx), moose (Alces alces) and brown bear (Ursus arctos) in Chernobyl Exclusion Zone (Ukraine). Proyecto TREE/Sergey Gaschack

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Wondering what practical measures they have in mind. Renewables?

Ireland Second Country To Declare Climate, Biodiversity Emergency (RTE)

Ireland has become only the second country in the world to declare a climate and biodiversity emergency. The development came after a Fianna Fáil amendment to the Oireachtas report on Climate Action was accepted by both the Government and Opposition parties without a vote. Chair of the Climate Action Committee, Fine Gael’s Hildegarde Naughton, welcomed the outcome as “an important statement” but added “now we need action.” She said Minister for Climate Action Richard Bruton would speedily return to the Dáil with new proposals, and she looked forward to working “with all parties and none” to scrutinise them.


Green Party leader Eamon Ryan also welcomed the development, but warned that “declaring an emergency means absolutely nothing unless there is action to back it up. That means the Government having to do things they don’t want to do”. Deputy Bríd Smith, of Solidarity/People Before Profit, said she was “delighted” with the declaration, but added it will be “interesting to see” if the Government will support her Climate Emergency Measures Bill next month, which seeks to to limit oil and gas exploration.

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May 052019
 


Giovanni Bellini The transfiguration c1490

 

Pelosi: Trump Could Contest 2020 Election Results – Be Prepared (Carter)
Joe Biden Says He ‘Doesn’t Have Time’ To Lay Out His Healthcare Plan (Ind.)
Trump Criticizes Social Media Bans Of Right-Wing Extremists (PA)
Trump Fires Off Tweetstorm on Social Media Censorship of Conservatives (GP)
Orwellian Cloud Hovers Over Russiagate (McGovern)
Fed To Give Banks A $36 Billion Taxpayer-Funded Subsidy (Middleton)
May Urges Corbyn To Agree A Brexit Deal (R.)
Anger Grows At May-Corbyn Bid To Stitch Up Brexit Deal (G.)
Austerity, Not ‘Failure’ Of Brexit, Behind Tories’ Election Wipeout (G.)
American Farmers Go Bankrupt (ZH)
US Trucking Skids into Downturn after Phenomenal Boom (WS)
Urban Greening Can Save Species, Cool Warming Cities, Make Us Happy (Conv.)

 

 

The Democrats, as personified by Pelosi, Schumer, Hillary, Biden etc., have no identity other than being against everything Trump. There are people in the party who do have ideas and an identity, like Tulsi Gabbard, AOC, and I’m not saying they’re all great ideas, but at least they have some. But they’re being sidelined.

And it’s of course funny to see Pelosi “pre-accusing” Trump of doing what she has done for 2+ years now. Accuse your opponent of what you yourself have done. Classic.

Pelosi: Trump Could Contest 2020 Election Results – Be Prepared (Carter)

In a New York Times interview on Saturday, Nancy Pelosi (D-Cal), shared her concerned that President Trump would not voluntarily step down unless Democrats win by a “big” enough margin in 2020. The Democratic Speaker of the House of Representative, expressed her concern over a possible scenario where Trump would not accept the election results if he were to lose re-election by a slim margin, the NY Times reported. “We have to inoculate against that, we have to be prepared for that,” Pelosi told the newspaper Wednesday.


“If we win by four seats, by a thousand votes each, he’s not going to respect the election,” said Ms. Pelosi, recalling her thinking in the run-up to the 2018 elections. “He would poison the public mind. He would challenge each of the races; he would say you can’t seat these people,” she added. “We had to win. Imagine if we hadn’t won — oh, don’t even imagine. So, as we go forward, we have to have the same approach.” In recent weeks Ms. Pelosi has told associates that she does not automatically trust the president to respect the results of any election short of an overwhelming defeat.

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Biden literally has nothing at all. Other than scolding Trump.

Joe Biden Says He ‘Doesn’t Have Time’ To Lay Out His Healthcare Plan (Ind.)

As Joe Biden storms through Iowa and prepares for his first visit as a presidential candidate in South Carolina, the Democratic front-runner has said he doesn’t “have the time” to lay out the details of his healthcare plan. “I don’t have time; I don’t want to keep you standing any longer,” Mr Biden said recently in Iowa City, declining to lay out his vision for America’s healthcare future to the assembled crowd, according to POLITICO. Likewise Mr Biden has been less than exhaustive when it comes to his other plans, be it foreign policy, or how to tackle climate change. The approach — one in which the former vice president has focused on the values needed in an American president, instead of on specifics of policy — stands in contrast to some of his stiffest competition from fellow Democrats hoping to shake up Democratic politics as we know it.


For months now, his closest competitor in the polls, Bernie Sanders, has been plugging his universal healthcare plan on the campaign trail, which he has dubbed Medicare for All. It’s a policy the Vermont senator has introduced repeatedly in Congress, and ran on in 2016, too. But Mr Sanders isn’t alone in pushing policy in the race. Elizabeth Warren has become known for doing so, offering up plans on issues ranging from healthcare – increase consumer subsidies, force insurers to accept tougher rules, and make insurance cheaper in the US — to improving accountability for private companies in charge of military housing.

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Two different takes on the same topic. First, the Press Association, which labels Paul Joseph Watson and James Woods as “Right-Wing Extremists”. A bit much, perhaps? Other labels I see flash by are far-right, alt-right, extremist conservatives. Isn’t it the labeling itself that is extremist?

Trump Criticizes Social Media Bans Of Right-Wing Extremists (PA)

US president Donald Trump has criticised social media companies after Facebook banned a number of extremist figures and has declared he was “monitoring and watching, closely!!” Mr Trump, who tweeted and retweeted complaints on Friday and Saturday, said he would “monitor the censorship of AMERICAN CITIZENS on social media platforms”. He has previously claimed social media companies are biased against conservatives, something the companies have rejected as untrue. His comments came after Facebook this week banned Louis Farrakhan, Alex Jones and other extremists, saying they violated its ban on “dangerous individuals”.


The company also removed right-wing personalities Paul Nehlen, Milo Yiannopoulos, Paul Joseph Watson and Laura Loomer, along with Mr Jones’s site, Infowars, which often posts conspiracy theories. The latest bans apply to Facebook’s main service and to Instagram, and extend to fan pages and other related accounts. Facebook’s move signalled new effort by the social media giant to remove people and groups promoting objectionable material such as hate, racism and anti-Semitism. The company said it has “always banned” people or groups that proclaim a violent or hateful mission or are engaged in acts of hate or violence, regardless of political ideology. On Twitter, Mr Trump cited a number of individuals he said were being unfairly treated by social media companies, including Mr Watson and actor James Woods. He insisted it was “getting worse and worse for Conservatives on social media!”

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But here’s how Cristina Laila at Gateway Pundit, the site known for Cassandra Fairbanks’ reporting on Julian Assange, phrases the issue. Whole different vocabulary.

Still, there’s a much bigger issue here. As I wrote in the comments the other day: What Facebook and Google are doing is very dangerous for the fabric of society. They’re turning us into China. It’s equal to saying: you cannot have a car, or gas, or a phone, a home. Because you grow a beard, or you have a crappy old car, or whatever.

Or it’s like saying you cannot drive on a certain road, maybe that’s a better example. At some point infrastructure must be available to everyone. You can’t say: this is private, go build your own road, or put up your own telephone poles, because your skin is black and we don’t like that around here.

“Facebook is a private company” is dead before you hit the water (for the same reason as AT&T). Problem is, no politician wants to burn their hands on the issue, which they don’t understand to begin with, until it’s too late. It’s much easier to say: look over there, those guys don’t do anything either.”

So, should Facebook be able to throw people out that haven’t been accused of anything criminal?

Trump Fires Off Tweetstorm on Social Media Censorship of Conservatives (GP)

The tech tyrants at Facebook went into overdrive this week and banned Milo Yiannopoulos, Laura Loomer, Paul Joseph Watson and Alex Jones — without any explanation, the conservative journalists were labeled “dangerous” by Facebook. President Trump fired off a tweetstorm Friday evening on the social media censorship of conservatives and named James Woods and Paul Joseph Watson. “I am continuing to monitor the censorship of AMERICAN CITIZENS on social media platforms. This is the United States of America — and we have what’s known as FREEDOM OF SPEECH! We are monitoring and watching, closely!!” Trump tweeted. “We’re looking into it,” Trump said as he defended his friends Diamond and Silk.

“So surprised to see Conservative thinkers like James Woods banned from Twitter, and Paul Watson banned from Facebook!” Trump said linking to a Breitbart article on Twitter’s silencing of James Woods. Paul Joseph Watson works for Infowars and has been employed by Alex Jones for several years. On Thursday Paul Joseph Watson was banned from Facebook for being associated with Infowars and Alex Jones. Paul Joseph Watson has NEVER broken Facebook rules… But he associates with Alex Jones. Facebook is now banning anyone who is linked to Infowars or has shared too many stories from the conservative Infowars page. But it’s even worse… It is now a violation of Facebook policy to speak positively ANYWHERE about people they don’t like.

Twitter also banned conservative actor James Woods last weekend for paraphrasing American essayist, poet and philosopher Ralph Waldo Emerson, for “abusive behavior.” James Woods tweeted, “If you try to kill the King, you better not miss.” #HangThemAll – similar to a quote from an essay Emerson wrote on Plato:“When you strike at a king, you must kill him.”

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If Americans were interested in the truth, they’d insist on their politicians and media and intelligence talking to the VIPS and Julian Assange. The fact that they haven’t, tells you all you need to know.

Orwellian Cloud Hovers Over Russiagate (McGovern)

George Orwell would have been in stitches Wednesday watching Attorney General William Barr and members of the Senate Judiciary Committee spar on Russia-gate. The hearing had the hallmarks of the intentionally or naively blind leading the blind with political shamelessness. From time to time the discussion turned to the absence of a legal “predicate” to investigate President Donald Trump for colluding with Russia. That is, of course, important; and we can expect to hear a lot more about that in coming months. More important: what remains unacknowledged is the absence of an evidence-based major premise that should have been in place to anchor the rhetoric and accusations about Russia-gate over the past three years. With a lack of evidence sufficient to support a major premise, any syllogism falls of its own weight.


The major premise that Russia hacked into the Democratic National Committee and gave WikiLeaks highly embarrassing emails cannot bear close scrutiny. Yes, former CIA Director John Brennan has told Congress he does not “do evidence.” In the same odd vein, Brennan’s former FBI counterpart James Comey chose not to “do evidence” when he failed to seize and inspect the DNC computers that a contractor-of-ill-repute working for the DNC claimed were hacked by Russia. Call us old fashioned, but we Veteran Intelligence Professionals for Sanity (VIPS) still “do evidence” — and, in the case at hand, forensic investigation. For those who “can handle the truth,” the two former NSA technical directors in VIPS can readily explain how the DNC emails were not hacked — by Russia or anyone else — but rather were copied and leaked by someone with physical access to the DNC computers.

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The Fed is a socialist organization.

Fed To Give Banks A $36 Billion Taxpayer-Funded Subsidy (Middleton)

Before 2009, the Fed did not pay interest on banks’ excess reserves held at the Fed. This practice was introduced as a taxpayer-funded subsidy to the banks during the crisis (taxpayer-funded because the Fed turns over any profit at the end of the year to the Treasury). After beginning this practice, the Fed’s chief trader, Simon Potter, realized it could be used to raise interest rates without expelling excess reserves from the Fed, by sucking liquidity out of the short-term markets. In fall 2015, it began raising the interest rate on excess reserves, with the anticipated effect. At a current rate of about $36 billion a year, this is a cost to the Treasury that is indefensible. This amount is about half the budget for food stamps, for example, which politicians want to cut. There is no provision for these funds ever to be paid back. It is welfare for the bankers.

If the banks had been required to take excess reserves back onto their books it would have required financial disclosure of their quality, which is probably toxic for many. However, with the Financial Accounting Standards Board recently promulgating Financial Accounting Statements 56 and, previously, 157, the “extend and pretend” statement, it would seem they feel less and less need for financial disclosure of any kind. FAS 56 states that the government does not have to disclose what it spends taxpayers’ money on because of national security concerns.

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Lose big and do a deal. It would be voted down.

May Urges Corbyn To Agree A Brexit Deal (R.)

British Prime Minister Theresa May has stepped up calls on Labour Party leader Jeremy Corbyn to agree a cross-party deal to leave the European Union, following poor results for both parties in local elections on Thursday. May’s Conservatives lost more than a thousand seats on English local councils that were up for re-election, and Labour – which would typically aim to gain hundreds of seats in a mid-term vote – instead lost 81. Both parties have been locked in talks for the past few weeks to try to broker a Brexit deal that can get a majority in Parliament, after May’s minority government suffered three heavy defeats on her preferred deal earlier this year.

Senior Conservatives said on Saturday there was an increased need for compromise after the local election results, and the leader of the Scottish branch of the Conservative Party said a deal with Labour could be done within days. May added her voice to these calls in an essay published in a Sunday newspaper. “To the Leader of the Opposition I say this: Let’s listen to what the voters said in the local elections and put our differences aside for a moment. Let’s do a deal,” she wrote in the Mail on Sunday. The Sunday Times reported that the Conservatives would offer new concessions to Labour when talks restart on Tuesday, including a temporary customs union with the European Union, which would last until a national election due in June 2022.

“At that point Labour could use their manifesto to argue for a softer Brexit if they wanted to and a new Conservative prime minister could argue for a harder Brexit,” a source cited by the Sunday Times said.

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There is no solution. the sooner everyone understands that the better. Even a national government is now out of the question.

Anger Grows At May-Corbyn Bid To Stitch Up Brexit Deal (G.)

Last-ditch efforts by Theresa May and Jeremy Corbyn to strike a compromise on Brexit looked doomed on Saturday as the party leaders faced mounting revolts from their own MPs and activists. Following Thursday’s local elections, in which both the Conservatives and Labour were punished severely by voters for failing to break the political deadlock, May and Corbyn have insisted their parties must now urgently agree a way forward in cross-party talks which will resume on Tuesday. On Saturday the prime minister reiterated her appeal, saying: “We have to find a way to break the deadlock. I believe the results of the local elections give fresh urgency to this.”

But opposition MPs and Tory Brexiters warned any deal the leadership teams stitch up behind the scenes would face inevitable defeat in parliament and cause more acrimony in the parties. The Observer can reveal that 104 opposition MPs, mainly from Labour but also SNP, Change UK, Green and Plaid Cymru, have written to May and Corbyn insisting they will not back a “Westminster stitch-up” unless there is a firm guarantee that any deal is then put to a confirmatory referendum. The MPs say: “The very worst thing we could do at this time is a Westminster stitch-up whether over the PM’s deal or another deal. This risks alienating both those who voted leave in 2016 and those who voted remain.”

They say that, “whatever the deal” is, it must be the subject of another referendum so voters can have the “final say”. Separately, senior Tory MPs insisted that any deal struck with Labour that involved anything close to a customs union – Corbyn’s central demand in the talks – would be rejected by more than 100 of the party’s MPs, who would see it as a betrayal of May’s promises on Brexit.

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No, both.

Austerity, Not ‘Failure’ Of Brexit, Behind Tories’ Election Wipeout (G.)

In my book Mr Osborne’s Economic Experiment (2015), I pointed out that the “age of austerity” experienced during the post-1945 Attlee government was unavoidable as a debilitated UK adapted from a wartime economy to peacetime. Resources were strictly limited, and production had to be channelled away from armaments towards the normal needs of the population. Spending power was restricted because goods and food were in short supply. The austerity policy imposed by the Cameron-Osborne administration in 2010-15 – in coalition, let us not forget, with the Lib Dems – was a policy choice. George Osborne, in particular, seized the opportunity of the financial crisis of 2007-09 to cut back on public spending, or at least restrain its rate of growth.


The most obvious victims were local authorities and the electors they serve. Cuts varying between 30% and 40% were imposed on central government grants to local authorities, and the consequences were cumulative. Hardly a day goes by without sad reports of the impact the cuts are having on public services, one of the most recent being the way teachers in overstretched state schools are having to dip into their own pockets to provide textbooks. There are countless other examples. We were told by Theresa May and Philip Hammond, the chancellor, that austerity was coming to an end. But there is precious little sign of it. Which brings us back – I know you have been waiting for it – to the way that Brexit would compound the deleterious effects of austerity, a conclusion reached by every forecast I have examined.

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Big Ag wants it all. But YOU can still go look for a farmers’ market.

American Farmers Go Bankrupt (ZH)

The collapse of multi-generational family farms has sent bankruptcies in the Midwest to ten-year highs. “Bankruptcies in three regions covering major farm states last year rose to the highest level in at least 10 years. The Seventh Circuit Court of Appeals, which includes Illinois, Indiana and Wisconsin, had double the bankruptcies in 2018 compared with 2008. In the Eighth Circuit, which includes states from North Dakota to Arkansas, bankruptcies swelled 96%. The 10th Circuit, which covers Kansas and other states, last year had 59% more bankruptcies than a decade earlier,” reported WSJ. Steffes Group, a top auction firm in the upper Midwest, has seen auction activity rise 40% in 2019. “Up until now, there wasn’t a lot of motivation to exit farming,” said auctioneer Scott Steffes. “Now, what I’m hearing from folks is, ‘It’s no longer fun to farm.’”

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There are far too many trucks anyway.

US Trucking Skids into Downturn after Phenomenal Boom (WS)

Orders for Class-8 trucks – the heavy trucks that haul consumer goods, equipment, commodities, and supplies across the US to feed the goods-based economy – plunged 52% in April compared to April last year, to 16,400 orders, according to FTR Transportation Intelligence on Friday. It was the lowest April since 2016 when the industry cycled through its last transportation recession. This comes after orders had already plunged 67% year-over-year in March, 58% in February and January, and 43% in December. The collapse in orders is on the scale of the last transportation recession in 2015 and 2016. The chart shows the percent change of orders for each month compared to a year earlier:

The industry is very cyclical with big swings in both directions. Trucking companies get exuberant when capacity tightens and freight rates shoot up as they did in late 2017 and 2018, and they’re inclined to order when business is booming, but it takes a while to get these trucks built, and order backlogs at truck manufacturers piled up to reach close a year at the peak in 2018. Fear of not getting the equipment when they need it can cause industry-wide bouts of over-ordering at the peak of the cycle, which was summer 2018. But as capacity rises, and the cyclical freight business backs off from its blistering growth phase and ticks down a little as it has been since late 2018, trucking companies adjust by reducing their orders, and when push comes to shove, if they can still do it, by cancelling their orders. And that’s what is happening here.

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I think perhaps everyone intuitively understands how to re-design cities. Cars must go first.

Urban Greening Can Save Species, Cool Warming Cities, Make Us Happy (Conv.)

The current climate and ecological crisis demands a radical redesign of how we live and organise our societies. Yet these urgent changes, though complex, are far from impossible. Some of them are simple, beautiful, and beneficial to all. By greening our cities with street trees, urban parks, and community and rooftop gardens, we can keep ourselves cool amid rising temperatures, reverse the steady erosion of the rich tapestry of life on Earth, and foster happiness and social connection in the process. It is widely known that greenery in urban spaces helps improve city microclimates.

Thanks to heat generated by traffic and industrial activity, as well as the spread of heat-trapping concrete buildings that have steadily replaced plant life, urban air temperature is often higher than in rural environments. Hotter cities compel urban denizens to opt for air conditioners in order to stay cool, which further strains energy demands and worsens the urban heat island effect. Plants can help cool cities through the water that evaporates from their leaves when exposed to the sun’s rays, and by shading surfaces that otherwise might have absorbed heat. Research has found that on a sunny day, a single healthy tree can have the cooling power of more than ten air-conditioning units.

Plants also help keep harmful pollutants such as microscopic particulate matter at bay through a complex process known as dry deposition, whereby particles penetrate and become trapped in the wax or cuticles of leaves. Although banning or at least restricting vehicle use in city centres is crucial, mass greening can further reduce pollution and keep cities cool in the increasingly scorching summers that lie ahead.

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Millions long for immortality who don’t know what to do with themselves on a rainy Sunday afternoon
– Susan Ertz

 

 

May 032019
 


Paul Klee In angel’s care (In Engelshut) 1931

 

Day of the Long Knives (Kassam)
Is The Media Driving America Insane? (LN)
How The News Took Over Reality (G.)
Assange or Khashoggi: Whither Journalistic Standards? (Aziz)
Democrats Rage At Empty Chair As Barr Misses Mueller Hearing (ZH)
How President Trump’s Legal Team Outfoxed Mueller (Chamberlain)
Ukrainian Embassy Confirms DNC Contractor Solicited Trump Dirt In 2016 (Hill)
April US Auto Sales Crash 6.1%, Worst Slide In 8 Years (ZH)
Global Foreign Direct Investment Flows Collapse (DQ)
Hippie-Punching MMT (Edward Harrison)

 

 

“If all these peoples’ ideas were not relevant, or popular, they would not need to be banned.”

It’s World Press Freedom Day today. Painfully ironic. We can’t let Facebook police our world. Or, rather, be police, judge and henchman all in one. We need laws for this and we need to apply them.

I don’t do Facebook anymore since they froze our account, what is it, 3 years ago?! I see Paul Joseph Watson every now and then on Twitter and though I don’t see myself becoming his best friend, he is an intelligent and articulate guy who has never violated Facebook’s regulations. Other than he has a link to Alex Jones. It’s easy to say Good Riddance, but you are next.

Day of the Long Knives (Kassam)

Alex Jones, Paul Joseph Watson, Laura Loomer and Milo Yiannopoulos have been unpersonned by the digital tech giant Facebook and its subsidiary Instagram. They’re coming for you, next. Or more likely, for us. Human Events stands shoulder-to-shoulder with those being routinely targeted by the would-be ‘Masters of the Universe’, no matter if we agree with them or not. Also banned was Louis Farrakhan, the anti-Semitic leader of the repugnant Nation of Islam group. But Farrakhan, like the others, should not have his fate decided by some little nerd in Silicon Valley who has decided his or her feelings are hurt. His fate should be decided in the court of public opinion, with sunlight acting as the greatest disinfectant.

Unfortunately, recent precedent has informed Big Tech that its methods to some extent work. The removal of people like Laura Loomer, Milo, and Tommy Robinson has directly impacted their livelihoods, their work, and their fundamental freedoms. And while Farrakhan is far from someone we would be seen dead around, it is only intellectually consistent if the rules apply both ways. For the psychopaths of Silicon Valley however, intellectual considerations come a distinct last to power, profit, and pandering. The likelihood is Farrakhan’s inclusion on the list is simply a sop to make the decision seem less of a one way street. If I were him, I’d be especially pissed off at being the fall guy in this regard.

But Jones, Loomer, Milo, and Watson have a claim to massive anger too, given they are being lumped in with a man who has said “white people deserve to die”, and who has said to Jewish people, “…don’t you forget, when it’s God who puts you in the ovens, it’s forever!” Tommy now struggles to gain traction – albeit with a smile on his face – and a plan to drive a bus around the country with a big screen on it, to highlight the censorship he faces. Milo – and he will probably hate me for saying this – faces total financial ruin. Alex Jones has had a massive business ripped out from under him. And Laura Loomer has been relegated to staging protests on the front lawns of those who needlessly aggress her.

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If they can make a buck from it, they certainly will.

Is The Media Driving America Insane? (LN)

Now that more of us are consuming news media more often than ever, a higher number of Americans are being fed a steady mental diet of outrage, fear, and hostility wrapped in clickbait headlines designed to make us even more contemptuous of those whose political beliefs clash with our own. Many media outlets have transformed emotionally charged, but ultimately irrelevant, stories into their bread and butter, manipulating their audiences into giving them their precious clicks in exchange for a dose of anger and panic. Otherwise unimportant stories are catapulted into the mainstream simply because the press knows Americans will tune in and boost their ratings.


The Covington kids fiasco is a prime example. What should have been a local matter was morphed into an issue of national importance by a left-wing media apparatus that wanted to further their “MAGA Hat-wearing white people are the spawn of Satan” narrative. In the end, what is accomplished? For the press, it is higher ratings and more clicks. But for the American public, it is a heightened sense of fear, hatred, and stress – a toxic brew rending the social fabric. It is no wonder that many are predicting another civil war. It would be easy to dismiss such claims as pure alarmism, but given how the Fourth Estate wields their influence, this reality is not hard to imagine. Is it possible to reverse course? Sure, but it won’t be easy. The media is in this game for two reasons: To earn a profit, and to achieve their political objectives. They have no incentive to inform rather than persuade. If the trend persists, things are sure to get uglier before they get better.

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Such a piece coming from the Guardian is pretty priceless. Even if it makes some valid points, it’s publications like that which seek to alter reality. Don’t report the news, but manufacture it.

How The News Took Over Reality (G.)

In recent years, there has been enormous concern about the time we spend on our web-connected devices and what that might be doing to our brains. But a related psychological shift has gone largely unremarked: the way that, for a certain segment of the population, the news has come to fill up more and more time – and, more subtly, to occupy centre stage in our subjective sense of reality, so that the world of national politics and international crises can feel more important, even more truly real, than the concrete immediacy of our families, neighbourhoods and workplaces. It’s not simply that we spend too many hours glued to screens. It’s that for some of us, at least, they have altered our way of being in the world such that the news is no longer one aspect of the backdrop to our lives, but the main drama. The way that journalists and television producers have always experienced the news is now the way millions of others experience it, too.


From a British or American standpoint, the overwhelmingly dominant features of this changed mental landscape are Brexit and the presidency of Donald Trump. But the sheer outrageousness of them both risks blinding us to how strange and recent a phenomenon it is for the news – any news – to assume such a central position in people’s daily lives. In a now familiar refrain, the New York Times columnist Nicholas Kristof bemoans his social circle’s “addiction to Trump” – “at cocktail parties, on cable television, at the dinner table, at the water cooler, all we talk about these days is Trump.” But Trump’s eclipse of all other news is not the only precondition for this addiction. The other is the eclipse of the rest of life by the dramas of the news.

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Excellent point. But there’s more: how does Assange’s freedom relate to that of the people who got banned from Facebook yesterday? Most of us will initially react to that question with something about what and who we like, but that’s not good enough.

Assange or Khashoggi: Whither Journalistic Standards? (Aziz)

Did international media and free press advocates who once celebrated Assange, utilized his revelations and heaped awards on Wikileaks, collectively agreed to abandon their erstwhile hero? And why the turnaround? (It’s not easy to explain although one observer suggests former associates actually conspired to depose him.) Increased silence from within Assange’s refuge presaged his recent ‘capture’. Then, when he suddenly appeared, subdued by dozens of guards, how shamelessly international media rushed to cheer his arrest. They seemed to delight in highlighting scant, salacious details of his condition at the time of his arrest. Reprehensible. Dismaying. Will those gloating journalists care what his captors do to Assange in detention?


This for the man whose political analyses and Wikileaks revelations had been daily headlines not long ago. This for a journalist and publisher who introduced a profound strategy to expose a government’s sinister diplomatic schemes, excesses and crimes documented by their own internal reports. This for an organization gathering evidence of government wrongdoing at a critical time, starting in 2006 when U.S. wars in Iraq and Afghanistan were being reevaluated by a sobering public. Rumors of military crimes, cover-ups, torture, black-site prisons, etc. had gradually, although belatedly, gained credibility and, following the Abu Graib Prison revelations, Wikileaks provided irrefutable evidence of how U.S.A. and its allies conducted their wars.

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From the WSJ Editorial Board yesterday: “Mr. Barr has since released the full Mueller report with minor redactions, as he promised, and with the “context” intact. Keep in mind Mr. Barr was under no legal obligation to release anything at all. Mr. Mueller reports only to Mr. Barr, not to the country or Congress.

Mr. Barr has also made nearly all of the redactions in the report available to senior Members of Congress to inspect at Justice. Yet as of this writing, only three Members have bothered—Senate Judiciary Chairman Lindsey Graham, Senate Majority Leader Mitch McConnell and ranking House Republican on Judiciary Doug Collins. Not one Democrat howling about Mr. Barr’s lack of transparency has examined the outrages they claim are hidden.”

Doug Collins’ tirade is a good listen. No need to agree with him.

Democrats Rage At Empty Chair As Barr Misses Mueller Hearing (ZH)

Refusing to allow the fact that AG Barr chose not to attend today’s Mueller Report hearing, angry Democrats took full advantage of the photo-op to conjure images of a terrified attorney general cowering from the truth and protecting a clearly guilty-of-something president. Despite Barr’s decision last night not to attend, because he objected to Democratic demands that their staff counsel be able to question him, Democrats went forward with the theater of the hearing anyway, setting up an empty chair for the absent attorney general. As The Hill reports, Rep. Steve Cohen (D-Tenn.) brought a bucket of Kentucky Fried Chicken to the morning event, and accused Barr of being a coward after it ended. House Judiciary Chairman Jerrold Nadler (D-N.Y.) tore into Barr, accusing him of failing to check President Trump’s “worst instincts” and misrepresenting Mueller’s findings.

“He has failed the men and women of the Department by placing the needs of the President over the fair administration of justice,” Nadler said. “He has even failed to show up today.” Republicans did not take it lying down with Rep. Matt Gaetz (R-Fla.) noted vociferously that “Judiciary Democrats say AG Barr is “terrified.” Yesterday he testified for over five hours in an open hearing. Today, they cut off my microphone.” And, Rep. Doug Collins (R-Ga.) accused Nadler of staging a “circus political stunt” and said the Democratic chairman wanted the hearing to look like an impeachment hearing. “That is the reason. The reason Bill Barr is not here today is because the Democrats decided they didn’t want him here today. That’s the reason he’s not here,” Collins said. “Not hearing from him is a travesty to this committee today.”

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Excellent read. Mueller wanted to make Trump’s firing of Comey to be obstruction. But that would have taken some hoops to jump through.

How President Trump’s Legal Team Outfoxed Mueller (Chamberlain)

When the Mueller Report was released on April 18th, most commentators focused on the “explosive” factual allegations. But other than the shocking revelation that the President once used an expletive in private, very few of those facts were novel; most were leaked long ago. At the end of Volume II of the Mueller Report, however, there were 20 pages of genuinely new material. There, the former FBI director turned Special Counsel Robert Mueller defended his “Application of Obstruction-Of-Justice Statutes To The President.” These overlooked 20 pages were dedicated to defending Mueller’s interpretation of a single subsection of a single obstruction-of-justice statute: 18 U.S.C. § 1512(c)(2).

That’s quite strange, but you know what’s stranger still? In June 2018, Bill Barr, then in private practice at Kirkland & Ellis, wrote a detailed legal memorandum to Deputy Attorney General Rod Rosenstein. This memo came to light in December, when Barr was nominated for Attorney General. The subject was Mueller’s interpretation of the aforementioned 18 U.S.C. § 1512(c)(2). [..] Reading Barr’s June 2018 memo alongside the last twenty pages of the Mueller Report is a curious experience. Together, they read like dueling legal briefs on the meaning of 18 U.S.C. § 1512(c)(2); the type of material one would expect to see from adversarial appellate litigators.

So-why did Robert Mueller dedicate 20 pages of his report to a seemingly obscure question of statutory interpretation? Why did Bill Barr write a detailed legal memorandum to Rod Rosenstein about that very same statute? And how, exactly, did Bill Barr know that that § 1512(c)(2) was central to Mueller’s obstruction theory – in June 2018, when he was still in private practice at Kirkland? [..] why, exactly, was the interpretation of 18 U.S.C. § 1512(c)(2) so contested? Let’s start by looking the statute, excerpted here: (c) Whoever corruptly— (1) alters, destroys, mutilates, or conceals a record, document, or other object, or attempts to do so, with the intent to impair the object’s integrity or availability for use in an official proceeding; or (2) otherwise obstructs, influences or impedes any official proceeding, or attempts to do so [is guilty of the crime of obstruction].

Why was this so important to Mueller? Because most of the obstruction statutes couldn’t possibly apply to President Trump’s behavior, as they require that a defendant obstruct a “pending proceeding” before an agency or tribunal. It is settled law that an FBI investigation does not constitute such a proceeding. But § 1512(c) applies to acts of obstruction done with the intent of impairing evidence for a future, potential proceeding. That made it potentially usable against the President.

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Ukraine is central. Even without Biden.

Ukrainian Embassy Confirms DNC Contractor Solicited Trump Dirt In 2016 (Hill)

The boomerang from the Democratic Party’s failed attempt to connect Donald Trump to Russia’s 2016 election meddling is picking up speed, and its flight path crosses right through Moscow’s pesky neighbor, Ukraine. That is where there is growing evidence a foreign power was asked, and in some cases tried, to help Hillary Clinton. In its most detailed account yet, Ukraine’s embassy in Washington says a Democratic National Committee insider during the 2016 election solicited dirt on Donald Trump’s campaign chairman and even tried to enlist the country’s president to help.


In written answers to questions, Ambassador Valeriy Chaly’s office says DNC contractor Alexandra Chalupa sought information from the Ukrainian government on Paul Manafort’s dealings inside the country, in hopes of forcing the issue before Congress. Chalupa later tried to arrange for Ukrainian President Petro Poroshenko to comment on Manafort’s Russian ties on a U.S. visit during the 2016 campaign, the ambassador said. Chaly says that, at the time of the contacts in 2016, the embassy knew Chalupa primarily as a Ukrainian-American activist, and learned only later of her ties to the DNC. He says the embassy considered her requests an inappropriate solicitation of interference in the U.S. election.

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Am I still the only one who thinks this is good news?

April US Auto Sales Crash 6.1%, Worst Slide In 8 Years (ZH)

It was yet another dismal month for US auto sales in April, continuing a recessionary trend that has been in place not only in the US, but globally, for the better part of the last 12 months and certainly since the beginning of 2019. The nonsense-excuse-du jour for this month’s disappointing numbers is being placed on the weather on seasonality on rising car prices, which easily pushed away an overextended, broke and debt-laden U.S. consumer. In a nutshell, US auto sales in April tumbled by 6.1% – the biggest monthly drop since May 2011 – to just 16.4 million units, the lowest since October 2014.

Aside for an incentive-boost driven rebound in March, every month of 2019 has seen a decline in the number of annualized auto sales. Furthermore, as David Rosenberg notes, the -4.3% Y/Y trend is the weakest it has been for the past 8 years. Adding “fuel to the fire”, the average price of a new car in April came in at $36,720, the highest ASP so far this year, according to The Detroit News. It comes at a time where interest rates remain above 6% on average, further pressuring sales.

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Mostly US funds flowing back home.

Global Foreign Direct Investment Flows Collapse (DQ)

Global foreign direct investment flows plunged by another 27% in 2018 — after having already plunged 16% in 2017 — to just $1.1 trillion, the equivalent of 1.3% of global GDP, the lowest ratio since 1999, according to new data released by the OECD. It was the third consecutive annual plunge in global FDI flows, as more and more companies either choose not to invest in businesses or assets in other countries or are prevented from doing so. At the peak in 2015, before the trade wars began, before the Brexit vote happened, and before China began cracking down on the capital outflows that had fueled big-ticket purchases of strategic companies across the globe as well as surging asset prices in multiple jurisdictions, global FDI flows totaled $1.92 trillion and represented around 2.5% of global GDP. FDI has since collapsed by 43%.

The OECD apportions much of the blame for the latest fall in FDI flows on the US tax reform in 2017, which prompted many US companies to repatriate large amounts of earnings held with foreign affiliates in countries such as Ireland and Switzerland, which both suffered a massive reduction in inward foreign investment last year. The U.S. is traditionally the world’s biggest source of FDI, but last year it recorded negative outflows for the first time since 2005, as the movement of funds from U.S. investors into global businesses and assets reversed and flowed back toward the U.S., at least on paper. The total sum of outflows last year was -$48 billion, compared to $316 billion in 2017.

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Time to reserve some space for MMT. Harrison has some valid views.

Hippie-Punching MMT (Edward Harrison)

A lot of people like to argue that the central bank and the central government are independent and autonomous powers. And the argument goes that because of this autonomy, central governments like the US aren’t really all-powerful because the central bank can simply refuse to create more IOUs. I think this is a ridiculous argument, though. The central bank is the central government’s agent. And it exists only as a vehicle for executing banking and monetary policies in the government’s interest. The independence it enjoys is entirely at the central government’s discretion – mostly to create the appearance of non-politically motivated policy which would create inflation and debase the currency. If push came to shove, the central government would do whatever it took to issue IOUs to promise to pay the bearer of its money the required sum of fiat currency.

Notice, though, that Euro Zone governments don’t have the same power because they cannot create euros. Sure, they can enforce tax in euros with the coercive power of the penalty of prison as an incentive. But, when their euro taxes fall short, they can’t create euros to make up the shortfall. The euro is not their IOU. They are just like any other debtor in the eurozone. And the MMT crowd were onto this right from the start. In fact, one of the MMT forefathers, Wynne Godley, predicted the European Sovereign Debt Crisis when the euro was first conceived in 1992. On the other hand, most mainstream economists were caught flat-footed by the crisis. They were operating under the assumption that the bond vigilantes had the same power over all debtors including sovereigns.

They said the bond vigilantes just gave sovereigns more leeway. And that’s still their position today despite all evidence to the contrary. How do you trade that? For me, I trade that by saying Germany is the de facto ‘sovereign’ in the euro zone because of its size and fiscal rectitude. The euro would have to cease to exist before German sovereign debt came under attack from bond vigilantes. Now, if Deutsche Bank went bankrupt and Germany bailed it out at great cost and went on a deficit binge to boot and government debt to GDP ended up ballooning to 120% of GDP, things would be different.

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Apr 252019
 
 April 25, 2019  Posted by at 9:03 am Finance Tagged with: , , , , , , , , , , , , ,  


Giovanni Bellini Pietà 1505

 

There Will Be No Soft Brexit Now. It’s No Deal, Revoke Or Another Vote (G.)
More British Families Than Ever Depend On Food Banks (Ind.)
Curbing Pensioner Benefits Could Help The Young (G.)
Deutsche Bank Handing Over Trump Loan Documents To NY Officials (AFP)
Former AG Mukasey Shreds CNN For Misleading Russia Conspiracy Theories (RT)
She Wrote The Patriot Act. Her Next Job Is With Facebook (ZH)
Iceland Court Orders Valitor (Formerly VISA) to Pay WikiLeaks $10 Million (GP)
Global Grounding Of 737 Max Will Cost Boeing More Than $1 Billion (G.)
Tesla Reports Another Doozie (WS)
Belt and Road Forum: China’s ‘Project Of The Century’ Hits Tough Times (G.)
Past Role and Current Risks from China – Anne-Stevenson Yang (HF)
Declare Capitalism Dead – Before It Takes Us All Down With It (Monbiot)
‘Death By A Thousand Cuts’: Vast Expanse Of Rainforest Lost In 2018 (G.)

 

 

There’s sweet poetic justice in the European elections playing a decisive role in what Brexit means.

There Will Be No Soft Brexit Now. It’s No Deal, Revoke Or Another Vote (G.)

Until recently, my view could have been summarised as follows: Brexit remains a lamentable event I will always oppose; but, in the absence of public permission to overturn it, a softer version would be less bad than a hard one, and could provide the fragile basis for an eventual form of reintegration with Europe down the line. At times in the past five months, ever since the UK and the EU struck the withdrawal agreement, a pragmatic compromise of this kind has seemed tantalisingly viable. Desperately though they tried through the winter, the hard Brexiteers failed to harden the original deal or take down May in the way they wanted. That left a space in the political centre.

So, when May finally made an opening to Labour in early April, there was a possibility that a Brexit compromise was on the cards – even at the eleventh hour and in spite of the immense party political difficulties it might entail for both. But it hasn’t happened. The talks between the government and Labour continue. But they are not going anywhere. This week both May and Jeremy Corbyn accused the other of dragging their feet. That could be a cunning joint deception, preparing their respective parties for a surprise deal. But it isn’t the case – believe me. There is an increasing air of unreality about the whole thing. On both sides of the table, the participants are looking over their shoulders at their own colleagues, not negotiating in earnest.

There are three big issues on the table in these talks. But there is no agreement on any of them. The first is over the terms of a future customs union and on single market alignment. The second, on which the two sides have had the biggest arguments, is on “future-proofing” any agreement against the next Conservative leader. The third is over the role, if any, of a confirmatory second vote. On each of these, May is unwilling to make concessions – or even to put options on the table – that would further divide the Tories, while Corbyn remains deeply reluctant to become co-owner of a joint agreement that might end in the overturning of Brexit.

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Parliament’s too busy with Brexit.

More British Families Than Ever Depend On Food Banks (Ind.)

Food bank use has soared to record levels, with the number of emergency supplies distributed across the UK having risen by nearly a fifth in one year, new figures show. Campaigners said it was “shameful” that a growing number of Britons were unable to feed themselves after data published by the Trussell Trust, the UK’s largest food bank provider, revealed 1,583,668 three-day emergency food supplies were distributed in the year to March 2019 – a 19 per cent rise on the previous year. More than half a million of these (577,618) went to children, fuelling concerns about rising child poverty, after government figures last month revealed that the number of youngsters living in absolute poverty had increased by 200,000 in a year – to a total of 3.7 million.


The figures have also prompted renewed criticism of the government’s flagship welfare reform, universal credit, as the Trussell Trust said issues with moving onto the new system were a “key driver” of increasing need, primarily due people having to wait five weeks for payment under the new system. Labour’s shadow work and pensions secretary Margaret Greenwood branded the sharp rise “shocking” and said the “need for emergency food parcels in one of the richest countries of the world” was “shameful”. “Nobody in our society should be forced to turn to food banks to survive. Despite ministers’ attempts to explain away food bank use, the Trussell Trust is very clear that cuts to social security and the five-week wait for universal credit payments are key reasons for the rise,” she added.

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Free TV licenses? What century is this? But seriously, this is why I think a UBI is inevitable. Taking from the old to give to the young is not an answer.

Curbing Pensioner Benefits Could Help The Young (G.)

Free TV licences for over-75s should be scrapped, the age threshold for free bus passes raised and the triple-lock on pensions abolished to close the widening gap between young and old in Britain, according to a Lords report. The House of Lords committee on intergenerational fairness and provision said it was time to rebalance government policy in favour of the young, to remove the risk of the social bonds between generations fraying further. For reasons of fairness and because many pensioner households across the UK have become better off on average than many working-age families, it called on ministers to curb several benefits targeted at older Britons.


The report said the triple-lock – which raises state pension payments in line with the highest of consumer price inflation, average earnings growth, or 2.5% – should be removed. The increase in annual pension payments should instead track average earnings, it said. Free TV licences based on age should be phased out but could be offered based on household income instead. The age when older people can apply for a free bus pass and receive winter fuel payments should also rise to at least five years after a person becomes eligible for the state pension, said the report. It added that this could be phased in to coincide with the state pension age rising to 67 from 2026.

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And there we go again.

NB: Deutsche just announced the death of the merger with Commerzbank.

Deutsche Bank Handing Over Trump Loan Documents To NY Officials (AFP)

Deutsche Bank has begun to provide documents on financing for some of President Donald Trump’s projects to New York State authorities, a source familiar with the matter told AFP on Wednesday. In mid-March, New York Attorney General Letitia James subpoenaed the German bank, demanding records related to loans and lines of credit granted to the Trump Organization. The money was intended to finance projects such as Trump hotels in Washington, DC, Miami and Chicago, another source told AFP last month on the condition of anonymity. It was unclear whether Deutsche Bank had provided all the documents requested.


“We remain committed to cooperating with authorized investigations,” a bank spokesman told AFP, while declining to comment on a CNN report that the company was handing over the documents. James’ office also declined to comment on the status of the documents regarding financing for the Trump Organization, the holding company that has been run by Trump’s sons Eric and Donald Trump Jr since he entered the White House. New York authorities also wanted records related to the Trump Organization’s failed attempt in 2014 to buy the Buffalo Bills football team, the source said on condition of anonymity.

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On CNN, no less: “In essence, panels of people sitting around a table inhaling their own exhaust, and getting high on it.”

Former AG Mukasey Shreds CNN For Misleading Russia Conspiracy Theories (RT)

Retired US Attorney General Michael Mukasey slammed CNN on its own network for what he said was flawed coverage of the special counsel investigation into US President Donald Trump. Appearing for a one-on-one interview on Cuomo Prime Time on Tuesday, Mukasey said CNN was “misleading a lot of people” in its coverage of the investigation, which sought to determine whether then-candidate Trump conspired with Moscow to win the 2016 presidential election. “You have a big audience – getting smaller by the minute now,” he said to host Chris Cuomo, who laughed nervously. Mukasey served as attorney general from 2007 to 2009 under the George W. Bush administration.


While the special counsel’s final report did not find evidence of a criminal conspiracy with Russia, the report was for weeks the subject of intense speculation in the media. Mukasey was not impressed with CNN’s performance in the lead-up to the report’s publication, as the network insisted on the collusion narrative. “Your network was devoting days of people sitting around and talking about a report whose contents they didn’t know – that they hadn’t seen,” Mukasey said. “In essence, panels of people sitting around a table inhaling their own exhaust, and getting high on it.” He added that CNN helped to whip the country into “a state of absolute hysteria” over the investigation. “Consider this,” he said, “[Trump is] being investigated for a crime that didn’t happen, and that he certainly didn’t commit.”

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Facebook = CIA.

She Wrote The Patriot Act. Her Next Job Is With Facebook (ZH)

Facebook announced Monday that Jennifer Newstead, a Trump appointee who served in the Department of Justice (DoJ) under President Bush, will join the social media company as General Counsel, supervising its global legal functions. Newstead replaces Colin Stretch, who announced in 3Q18 that he will exit. Stretch will remain with Facebook through the transition phase, expected to be completed in the coming months. “Jennifer is a seasoned leader whose global perspective and experience will help us fulfill our mission,” said Sheryl Sandberg, Facebook’s Chief Operating Officer. “We are also truly grateful to Colin for his dedicated leadership and wise counsel over the past nine years. He has played a crucial role in some of our most important projects and has created a strong foundation for Jennifer to build upon.”

Newstead brings a terrifying history of lobbying and legislating for an Orwellian style of mass electronic surveillance of Americans. The Hill explains she was credited with writing the controversial 2001 Patriot Act, a piece of legislation that stripped Americans of their First and Fourth Amendments in the name of fighting the War on Terror. In a 2002 statement, Assistant Attorney General Viet Dinh described Newstead’s role in drafting the Patriot Act: “Her enhanced leadership duties and her excellent service on a range of issues — including helping craft the new U.S.A. Patriot Act to protect the United States against terror — have earned her this important distinction. She is first among equals.”


Congress enacted the Patriot Act in the wake of September 11, 2001 attacks, the Act expanded the scope of the government’s surveillance powers to investigate terrorism, organized crime, and drug trafficking. It allowed government investigators to use roving wiretaps and the ability to collect telephone records from US carriers.

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That means Assange defense.

Iceland Court Orders Valitor (Formerly VISA) to Pay WikiLeaks $10 Million (GP)

The Icelandic court has ordered Valitor, formerly VISA Iceland, to pay WikiLeaks $10 million in damages over the 2011 banking blockade. Valitor had been ordered to process card payments for WikiLeaks in 2013 by the same court, and was told they would face daily penalties if they refused to comply. By not reinstating services, the company was fined $204,900 per month or $2,494,604 per year for continuing the blockade. On Wednesday, Icelandic media reported that the company has now been ordered to pay up. Valitor has stated that they are likely to appeal, according to WikiLeaks. WikiLeaks had launched a case against Valitor in Reykjavik back in June of 2012 over the unlawful suspension of financial services against Wikileaks.


Ten days after WikiLeaks published Cablegate, they were blockaded by Bank of America, VISA, MasterCard, PayPal and Western Union. The political effort to defund the organization lead to a wave of hacks and cyber attacks against the companies by transparency activists. “The blockade is outside of any accountable, public process. It is without democratic oversight or transparency. The US government itself found that there were no lawful grounds to add WikiLeaks to a US financial blockade. But the blockade of WikiLeaks by politicized US finance companies continues regardless,” WikiLeaks said in a statement at the time.

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Appears to be a real low amount. They lose a billion a month from not building 52 but 42 planes.

Global Grounding Of 737 Max Will Cost Boeing More Than $1 Billion (G.)

The global grounding of Boeing’s 737 Max jets will cost the company more than $1bn, the company said on Wednesday. In its first quarterly earnings report since the Lion Air and Ethiopian Airlines disasters, Boeing announced it had abandoned its 2019 financial outlook and halted share buy-backs in mid-March as it deals with the crisis. Dennis Muilenburg, Boeing’s chairman and chief executive officer, said: “We have great sorrow for the families affected. This weighs heavily on us.” He said the company’s first priority was to get the 737 Max back in the air and that the company was working closely with the Federal Aviation Administration (FAA) and other regulators to end the aircraft grounding.


The announcement was a sharp reversal from Boeing’s last earnings report in January, when executives unveiled plans to deliver more than 900 jetliners this year alongside higher sales and profits. The world’s largest plane-maker reported first-quarter revenue and cashflow below sharply lowered Wall Street estimates, largely due to stopping deliveries of the 737 Max jets, which were grounded in March after the two crashes. [..] Boeing cut production of the jets following the crashes to 42 aircraft per month, down from 52, and its operating cash flow in the first quarter was about $350m lower than a year earlier.

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Musk’s business models are all based on subsidies.

Tesla Reports Another Doozie (WS)

It would be a joke for a small niche automaker, specialized in luxury cars, with a global market share of less than 1% to get this kind of global attention. But Tesla is unique because of its extraordinarily ludicrous stock price. Though that price has come down by about 32% from its peak in June 2017, it’s still ludicrously high. More on that in a moment. We’re going to skip over all the glossy stuff and go straight to the financial statement, more specifically to the bottom line of the income statement, where Tesla reported a zinger of a net loss of $702 million, its third-worst quarterly net loss ever. We note here that part of Tesla’s business model is to sell taxpayer-funded pollution credits to other companies, but they’re not fully disclosed until Tesla files its 10-Q at a later date:

These pollution credits are pure profit. For Q1, Tesla disclosed only $15 million of these credits. For the full disclosure we have to wait until Tesla files its 10-Q report for Q1 at a later date, when no one pays attention. For example, in the miraculous third quarter last year, Tesla reported a profit of $311 million on October 24, and all the world was left speculating and digging into how it accomplished this. At the time, it disclosed $52 million in “regulatory credits,” as it calls them. But then on November 2, Tesla filed its 10-Q for that quarter, disclosing that $189.5 million of its $311 million in profits had come from the sale of those “regulatory credits,” a much larger amount than typical.


[..] at the price of $258.66 a share at the close today, Tesla has a market capitalization of $44.7 billion. By comparison, GM – and I’m no fan of GM at this price – which made $48 billion in net income over the past four years and whose revenues of $147 billion in 2018 were seven times the size of Tesla’s, has a market cap of $56.6 billion. And at peak Tesla nuttiness, there were long periods when the market cap of Tesla exceeded that of GM. So to have some fun, I created this chart to show the difference in market cap (GM minus Tesla) in billion dollars.

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“debt trap diplomacy”

Belt and Road Forum: China’s ‘Project Of The Century’ Hits Tough Times (G.)

As China fetes its Belt and Road initiative at a summit this week, Chinese officials will be working hard to defend the flagship project from growing international criticism. The three-day forum starting on Thursday is meant to promote Chinese leader Xi Jinping’s “project of the century”, a foreign policy initiative launched in 2013 to revive ancient trading routes between Asia and Europe, as well as build new links in the Middle East, Africa, and South America. But in contrast to its first summit two years ago, the Belt and Road Initiative (BRI) takes place in a much less welcoming environment. Critics say the initiative is an effort to cement Chinese influence around the world by financially binding countries to Beijing by way of “debt trap diplomacy”.


“The ‘Belt and Road initiative’ (BRI) is not a geopolitical tool but a platform for cooperation,” Chinese foreign minister Wang Yi said last week, ahead of the forum “We welcome all parties to take part in it.” This week’s event is especially important for Beijing, which uses the forum as a way to convince the international community, as well as its own citizens, of the success of the project. Beijing is likely to laud the memoranda of understanding signed at the event, which will conclude with a joint communique. [..] The event is to be attended by 37 leaders, including Russian president Vladimir Putin, Italian prime minister Giuseppe Conte, UK chancellor Philip Hammond, Pakistan’s prime minister Imran Khan and the heads of state of the 10 Asean (Association of South-east Asian Nation) states.

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“In this week’s episode of Hidden Forces, Demetri Kofinas speaks with China expert Anne Stevenson-Yang about the imminent dangers facing global financial markets in the event of a break in the renminbi-dollar peg.”

“I really have never seen a listed company in China that did not have material and significant fraud.” – Anne Stevenson-Yang”

Past Role and Current Risks from China – Anne-Stevenson Yang (HF)

The problem is that China generated a tremendous amount of money and credit since the GFC, in particular, and therefore risks a major devaluation in the value of the RMB should the country no longer be able to get the foreign exchange reserves it needs through a sustainable current account surplus. They are, at the moment, running a negative current account, a negative fiscal balance (of roughly 9% of GDP), their foreign exchange reserves are declining for the first time ever, while the country’s external debt has doubled in the last five years, increasing by an average of $70 billion per quarter since the beginning of 2017. More than half of this debt is short-term, which means it needs to be constantly rolled over.


Up until the Fed paused it’s tightening cycle, the rising interest rates coupled with new tariffs on Chinese goods were creating a pincer-like effect on China’s economy and on its ability to maintain its peg, forcing it to fund more of its dollar needs through borrowing at ever higher interest rates. China cannot maintain a credible peg between the RMB and the USD when its money supply is growing, by some calculations at more than 10x that of the United States over the last 10 years. This is a fundamental problem of accounting. If China were completely self-sufficient – if it had access to sufficient energy, food, base metals, etc. within its own borders – then its inability to obtain dollars would not be an issue. The problem is that it is desperately short these commodities as inputs for its manufacturing and domestic consumption.

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Not a Monbiot fan, but surely a discussion point. Unlike him, do come with an alternative.

Thunberg: ‘That future was sold so that a small number of people could make unimaginable amounts of money. It was stolen from us every time you said that the sky was the limit, and that you only live once.’

Declare Capitalism Dead – Before It Takes Us All Down With It (Monbiot)

Capitalism’s failures arise from two of its defining elements. The first is perpetual growth. Economic growth is the aggregate effect of the quest to accumulate capital and extract profit. Capitalism collapses without growth, yet perpetual growth on a finite planet leads inexorably to environmental calamity. Those who defend capitalism argue that, as consumption switches from goods to services, economic growth can be decoupled from the use of material resources. Last week a paper in the journal New Political Economy, by Jason Hickel and Giorgos Kallis, examined this premise. They found that while some relative decoupling took place in the 20th century (material resource consumption grew, but not as quickly as economic growth), in the 21st century there has been a recoupling: rising resource consumption has so far matched or exceeded the rate of economic growth.

The absolute decoupling needed to avert environmental catastrophe (a reduction in material resource use) has never been achieved, and appears impossible while economic growth continues. Green growth is an illusion. A system based on perpetual growth cannot function without peripheries and externalities. There must always be an extraction zone – from which materials are taken without full payment – and a disposal zone, where costs are dumped in the form of waste and pollution. As the scale of economic activity increases until capitalism affects everything, from the atmosphere to the deep ocean floor, the entire planet becomes a sacrifice zone: we all inhabit the periphery of the profit-making machine.

[..] The second defining element is the bizarre assumption that a person is entitled to as great a share of the world’s natural wealth as their money can buy. This seizure of common goods causes three further dislocations. First, the scramble for exclusive control of non-reproducible assets, which implies either violence or legislative truncations of other people’s rights. Second, the immiseration of other people by an economy based on looting across both space and time. Third, the translation of economic power into political power, as control over essential resources leads to control over the social relations that surround them.

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The only thing we’re acutally good at is destruction.

‘Death By A Thousand Cuts’: Vast Expanse Of Rainforest Lost In 2018 (G.)

Millions of hectares of pristine tropical rainforest were destroyed in 2018, according to satellite analysis, with beef, chocolate and palm oil among the main causes. The forests store huge amounts of carbon and are teeming with wildlife, making their protection critical to stopping runaway climate change and halting a sixth mass extinction. But deforestation is still on an upward trend, the researchers said. Although 2018 losses were lower than in 2016 and 2017, when dry conditions led to large fires, last year was the next worst since 2002, when such records began. Clearcutting of primary forest by loggers and cattle ranchers in Brazil dominated the destruction, including invasions into indigenous lands where uncontacted tribes live.

Losses were also high in the Democratic Republic of the Congo (DRC) and Indonesia. Indonesia is the only major country where government protections appear to be significantly reducing the losses. Ghana and Ivory Coast recorded the biggest percentage rises in rainforest destruction, driven by gold mining and cocoa farming. “We are nowhere near winning this battle,” said Frances Seymour from the World Resources Institute, part of the Global Forest Watch (GFW) network, which produced the analysis. “It is really tempting to celebrate a second year of decline since peak tree cover loss in 2016 but, if you look back over the last 18 years, it is clear that the overall trend is still upwards.”

“The world’s forests are now in the emergency room – it is death by a thousand cuts,” she said. “Band-Aid responses are not enough. For every hectare lost, we are one step closer to the scary scenario of runaway climate change.” There are many government and corporate efforts to combat deforestation, but they are not proving to be enough, Seymour said.

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Apr 082019
 


Pablo Picasso Young girl throwing a rock 1931

 

British Voters Say Give Us A Strong Leader Willing To Break The Rules (R.)
May Faces Intense Cabinet Pressure Over Prospect Of Lengthy Brexit Delay (G.)
Labour Jewish Members Declare Party’s Leadership ‘Antisemitic’ (Ind.)
Sorry Is The Easiest Word – But Should Democrats Stop Their Apology Tour? (G.)
Mulvaney Says Democrats Will ‘Never’ See Trump Tax Returns (AFP)
US Urges Immediate Halt To Military Operations In Libya (R.)
Gold Is Moving Back Into The Center Of The Financial System – Rubino (USAW)
Facebook Are ‘Morally Bankrupt Liars’ – New Zealand Privacy Commissioner (G.)
Chelsea Manning’s ‘Don’t Tread on Me’ Moment (Kiriakou)
Midwest Floods Hammer US Ethanol Industry (R.)
Greek Pensioners Have Become The Biggest Single Group Of Taxpayers (K.)
Pain-Care Specialist Agrees To Testify Against Purdue (R.)
Drinks Bottles Now Biggest Plastic Menace For Waterways (G.)

 

 

History rhymes.

British Voters Say Give Us A Strong Leader Willing To Break The Rules (R.)

British voters want a strong leader who is willing to break the rules and force through wide scale reform after three years of Brexit crisis pushed confidence in the political system to a 15-year low. The 2016 referendum revealed a United Kingdom divided over much more than EU membership, and has sparked impassioned debate about everything from secession and immigration to capitalism, empire and what it means to be British. Yet more than a week since the United Kingdom was originally supposed to leave the EU on March 29, nothing is resolved: it remains uncertain how, when or if it ever will.


Research by the Hansard Society found that 54 percent of voters want a strong leader who is willing to break the rules while 72 percent said the system needs “quite a lot” or “a great deal” of improvement. Confidence in the system at the lowest level in the 15-year history of the survey, lower even than after the 2009 expense scandal when lawmakers were shown to have charged taxpayers for everything from an ornamental duck house to cleaning out a moat. [..] “People are pessimistic about the country’s problems and their possible solution, with sizeable numbers willing to entertain radical political changes.” Just a quarter of people had confidence in lawmakers’ handling of Brexit.

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They had people vote for something, and then spent 3 years haggling over what that something was. At the very least that’s the wrong way around.

May Faces Intense Cabinet Pressure Over Prospect Of Lengthy Brexit Delay (G.)

Theresa May is facing intense cabinet pressure to avoid the prospect of a long Brexit delay, amid increasing expectations that last ditch cross-party talks on a compromise departure plan will not produce anything concrete. Before a crucial EU summit later this week, the prime minister is facing a fast-diminishing range of options that could split the Conservative party and prompt a mass cabinet walkout, or could result in the UK crashing out of the EU without a deal on Friday. May’s only response on Sunday was a homespun video that called for a compromise solution, but while praised for its conversational style, it lacked any fresh detail on proposals to break the Brexit impasse.

With Labour reiterating it had yet to learn even the basics of concessions May might offer after her dramatic call last week for consensus, the timetable looked tight to agree anything before the European council gathering on Wednesday evening. Under the terms of the previous brief extension agreed with the EU, if Brussels does not agree another delay, a no-deal Brexit will happen on Friday. May has requested a pause until 30 June, but Brussels is keen on a wait of up to a year, which could be broken earlier if a solution is found. On Monday, the EU’s chief Brexit negotiator, Michel Barnier, will hold talks with the Irish Taoiseach, Leo Varadkar.

At the weekend, Varadkar said his own preference was for a longer extension than 30 June. Also on Monday, Jeremy Corbyn is due to hold meetings with Sinn Fein’s leaders in London. The party’s president, Mary Lou McDonald, is expected to tell Corbyn that Irish interests must be protected whatever the outcome of his Brexit negotiations with Theresa May.

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Corbyn talks to May and very predictably this drivel comes out again. Corbyn’s no anti-semite, but he defends Palestinians. That’s why there’s this.

But at the same time, he’s the one who allows this to happen. The Labour Party should be talking about what’s happening to Julian Assange in the heart of London, not be in some nonsense war on alleged anti-semitism.

Labour Jewish Members Declare Party’s Leadership ‘Antisemitic’ (Ind.)

Jewish Labour members have branded the party leadership as antisemitic in a fresh blow to Jeremy Corbyn. The Jewish Labour Movement (JLM) passed the damning motion at its annual general meeting on Sunday, accusing Mr Corbyn of having “condoned antisemitism and antisemites”. The group said the Labour leader was “unfit to be prime minister” and that a government he led “would not be in the interests of British Jews”. JLM is Labour’s only official Jewish affiliate and has been part of the party for almost 100 years. One source at the meeting told The Independent the decision to approve the motion of no confidence in Mr Corbyn was “almost unanimous”.


It reads: “The leadership of the Labour Party have demonstrated that they are antisemitic, and have presided over a culture of antisemitism in which they have failed to use their personal and positional power to tackle antisemitism, and have instead used their influence to protect and defend antisemites. “Jeremy Corbyn is directly responsible, whether through his own actions, where he appears to have condoned antisemitism and antisemites, or through his inaction to tackle the wider problem within the party.” The motion said JLM “has no confidence in Jeremy Corbyn’s ability to understand, respond to or solve the problem” and claimed “his leadership of the Labour Party combined with his past actions and associations shows a complete disregard for the Jewish community in Britain”.

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Why the Democrats are toast: long article on tons of apologies, but not a word about what they really should apologize for: Russiagate.

Sorry Is The Easiest Word – But Should Democrats Stop Their Apology Tour? (G.)

For Joe Biden, it was his discomfiting touching of women. For Pete Buttigieg, his use of the phrase “all lives matter”. For Tulsi Gabbard, her comments about homosexuality. For Kirsten Gillibrand, her positions on immigration. For Kamala Harris, her record on criminal justice. For Beto O’Rourke, his jokes about his wife and children. For Bernie Sanders, his staff perpetrating sexual harassment in the last campaign. For Elizabeth Warren, her claim to Native American ancestry. Democrats running for president in 2020 are on an “apology tour”, seeking to atone for past political sins. Some voters welcome it as an antidote to Donald Trump, an overdue attempt to set the social and political bar higher for the 21st century. Others are anxious that the candidates’ supporters will try to tear each other down with “wokeness” tests that could leave the party hopelessly divided.

[..] In February, comedian Bill Maher urged viewers of his HBO show: “No more swiping left on presidential candidates. Let’s give them a chance. Let’s not eat our own the way we nitpicked Hillary [Clinton] to death over her emails and other bullshit.” Maher added: “Kamala Harris has already had to play defence because it’s come out, when she was a prosecutor, she prosecuted people. Not very progressive. She should have found a way to apply more forgiveness, and the fact that she didn’t is unforgivable. Elizabeth Warren claimed to be Native American – so what? Trump claimed to be human.”

Republicans sense an opportunity to frame Democrats as consumed by identity politics and virtue signalling. Rich Lowry, editor of the National Review, wrote in February: Democrats are about to ≠embark on the first woke primary, a gantlet of political correctness that will routinely wring abject apologies out of candidates and find fault in even the most sure-footed. The passage of time will be no defense. Nor the best of intentions. Nor anything else.

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“If the Democrats want to know “if the IRS is doing its job auditing the president, they could ask the IRS..”

Mulvaney Says Democrats Will ‘Never’ See Trump Tax Returns (AFP)

A formal request from a Democratic committee chairman to see six years of Donald Trump’s tax returns was forcibly rejected Sunday by a top presidential aide, who said Democrats would “never” see the documents. Trump is the first US president since Richard Nixon to refuse to divulge his tax information. Representative Richard Neal, chairman of the House Ways and Means Committee, sparked a contentious battle on Wednesday when he made the request using a little-known provision in the tax code, saying, “It is critical to ensure the accountability of our government and elected officials.” But when Trump’s acting chief of staff, Mick Mulvaney, was asked Sunday whether Democrats would ever see the returns, he was unequivocal. “Never,” he said on “Fox News Sunday.” “Nor should they.”

Mulvaney asserted that since voters knew ahead of the 2016 election that Trump would not reveal his returns and then elected him anyway, the matter was “already litigated.” He said that while there are legal provisions for the Internal Revenue Service to turn tax papers over to the Ways and Means Committee – the chief tax-writing committee in the House – a “political” attack is not a valid reason. Separately, Jay Sekulow, a private attorney for Trump, argued that the Democratic-controlled House was trying to move beyond its constitutionally mandated role of oversight into the realm of law enforcement. If the Democrats want to know “if the IRS is doing its job auditing the president, they could ask the IRS,” he said on ABC’s “This Week.”

“A Ways and Means hearing about IRS enforcement as a way to get to the president’s private individual and business tax returns makes no sense, both constitutionally and statutorily,” Sekulow said. But Dan Kildee, a Democratic member of Ways and Means, took strong exception. “We’re looking very carefully as to whether or not the IRS is properly auditing and enforcing tax law on the president of the United States, and we’re considering legislative changes toward that end,” he said on ABC.

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Thank you, Hillary and Obama.

US Urges Immediate Halt To Military Operations In Libya (R.)

The United States called on Sunday for an immediate halt to military operations in Libya as the Libyan National Army headed by Khalifa Haftar advanced on the capital, Tripoli. Secretary of State Mike Pompeo said in a statement that Washington was “deeply concerned about fighting near Tripoli” and urged talks to end the fighting. “We have made clear that we oppose the military offensive by Khalifa Haftar’s forces and urge the immediate halt to these military operations against the Libyan capital,” Pompeo said in urging de-escalation. Eleven people were killed and 23 wounded in clashes in southern Tripoli, the Health Ministry of the U.N.-backed Libyan government of National Accord said late on Sunday.


The ministry gave no details of whether the casualties were civilians or fighters. Lawless since 2011 when Muammar Gaddafi was toppled by rebels backed by NATO air strikes, Libya has become the transit point for hundreds of thousands of migrants trekking across the Sahara in hopes of crossing the Mediterranean Sea to reach Europe. Haftar, 75, who casts himself as a foe of Islamist extremism but is viewed by opponents as a new dictator in the mold of Gaddafi, enjoys the backing of Egypt and the United Arab Emirates, which see him as a bulwark against Islamists and have supported him militarily, according to U.N. reports.

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“.. in the next recession, we will be taking on huge amounts of new debt at an accelerating rate.”

Gold Is Moving Back Into The Center Of The Financial System – Rubino (USAW)

The end part of this story is how good all this is for gold. . . . The next thing from the Fed will be a rate cut, and it will increase and not decrease its balance sheet. . . . We are going to go preemptively to monetary easing, and that’s really new. This is very, very new. You normally don’t do this. You wait until you see a bear market and a slowdown in the economy that gets people laid off before you start aggressively easing. Apparently, we are going to do that stuff before that stuff starts happening. Who knows what the impact of that will be? If it works the way they want, more people will get hired, wages will pick up and we’ll have inflation in the 4% or 5% range before you know it.”

So, with near record low yields on bonds and near record high prices for stocks, Rubino has just one question. Rubino says, “What’s cheap? Gold and silver. What is down and what is cheap relative to the fundamentals. It’s not just the price of gold and silver, it’s how much gold and silver exists relative to how much paper wealth is in the world. The amount of gold and silver that we are bringing out of the ground is growing at 1% or 2% per year. The amount of paper wealth in the world is growing exponentially. . . .Gold is moving back into the center of the global financial system.”

Another big factor to consider is debt. Rubino says, “Every big country is running deficits that are dramatically bigger than they were five years ago. In the U.S., we are back to $1 trillion a year deficits, which is Obama Administration post Great Recession kind of numbers, and we are doing it 10 years into an expansion. . . . So, in the next recession, we will be taking on huge amounts of new debt at an accelerating rate.

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Now we’re talking.

Facebook Are ‘Morally Bankrupt Liars’ – New Zealand Privacy Commissioner (G.)

New Zealand’s privacy commissioner has lashed out at social media giant Facebook in the wake of the Christchurch attacks, calling the company “morally bankrupt pathological liars”. The commissioner used his personal Twitter page to lambast the social network, which has also drawn the ire of prime minister Jacinda Ardern for hosting a livestream of the attacks that left 50 dead, which was then copied and shared all over the internet. “Facebook cannot be trusted,” wrote Edwards. “They are morally bankrupt pathological liars who enable genocide (Myanmar), facilitate foreign undermining of democratic institutions.


“[They] allow the live streaming of suicides, rapes, and murders, continue to host and publish the mosque attack video, allow advertisers to target ‘Jew haters’ and other hateful market segments, and refuse to accept any responsibility for any content or harm. “They #dontgiveazuck” wrote Edwards. He later deleted the tweets, saying they had prompted “toxic and misinformed traffic”. Edwards was responding to an interview given by Facebook co-founder Mark Zuckerberg to America’s ABC network, in which he failed to commit to any changes to the Facebook live technology, including a time delay on livestreams. Zuckerberg said incidents like the live streaming of the Christchurch mosque attacks were the result of “bad actors”; not bad technology and a time delay would disrupt the enjoyment of users who broadcast events like birthday parties or group hangouts.

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Pete Seeger did in the 1950’s what Chelsea is doing today.

Chelsea Manning’s ‘Don’t Tread on Me’ Moment (Kiriakou)

Contrary to popular belief, President Obama did not pardon Manning in the final days of his administration. Instead, he commuted her sentence, simply releasing her from prison. The conviction still stands and Manning is still in legal jeopardy. Prosecutors could still decide to charge her with crimes related to the original charges. With that said, was Manning’s subpoena a ham-fisted attempt to get her to contradict herself in new testimony, thus inviting another felony charge for perjury or making a false statement? Were prosecutors trying to get Manning to implicate herself in some process felony? Or were they simply trying to force her to turn rat on Julian Assange?

Again, Manning could have simply answered each question with “I don’t recall.” She would have been home in time for dinner. Instead, she made a political point—one that all of us should want to emulate. That point is “Don’t tread on me.” That point is “I’m willing to jeopardize my freedom to protect yours.” I say often that in my time at the CIA, I learned that CIA culture is such that employees are taught that everything in life is a shade of gray. But that is simply not true. Some things are black and white, right or wrong. This is one of those things. It’s the government that’s the enemy here, not Manning or Assange.

Remember, the American people own the information that Manning and Assange are accused of releasing. We have a right to know what our government is doing in our name. We have a right to know whether the government is covering up crimes. We have a right to know when—and why—those Americans who commit war crimes or crimes against humanity are not being prosecuted. The mainstream media doesn’t tell us. But Wikileaks does. We wouldn’t know about some of the most egregious war crimes of the past two decades without Chelsea Manning and Julian Assange. You don’t have to like them. You don’t have to share their politics. You don’t have to want to go out and have a beer with them. But you do have to respect what they’ve done.

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Stupid industry anyway.

Midwest Floods Hammer US Ethanol Industry (R.)

The March floods that punished the U.S. Midwest have roiled the ethanol industry, hammering prices and trapping barrels in the country’s interior while the U.S. coasts suffer from shortages of the biofuel. The historic March floods have dealt a series of blows to large swaths of an ethanol industry that was already struggling with high inventories and sluggish domestic demand growth. And the ethanol shortages are one factor pushing gasoline prices in Los Angeles and Southern California to the highest in the nation and they could top $4 a gallon for the first time since 2014, according to tracking firm GasBuddy.


Benchmark price for ethanol used in most supply contracts initially jumped on news of the floods but has been hobbled by rising waters around the Chicago hub that have halted barges and sales. That stands in contrast to prices on the coasts, which rose dramatically – drawing in heavy imports from Brazil, the main U.S. ethanol competitor. The floods inflicted billions of dollars in damage to crops and homes in the U.S. Midwest, and knocked out roughly 13% of ethanol capacity. U.S. ethanol is made from corn and required by the government to be blended into the nation’s fuel supply to reduce emissions. While some ethanol plants were flooded, the primary effect of the rising waters was to shut rail lines that serve as the main arteries for corn and ethanol deliveries.

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Q: how long can you keep an economy running that has more pensioners than workers?

Greek Pensioners Have Become The Biggest Single Group Of Taxpayers (K.)

Pensioners constitute the biggest single group of taxpayers in Greece, confirming the ominous predictions about the impact of an aging population on growth and state finances. The number of pensioners expanded since the starts of the financial crisis more than any other group, coming to outnumber even salaried workers. The relevant data from the Independent Authority for Public Revenue are impressive, showing that in nine out of the country’s 13 regions, pensioners make up the biggest group of taxpayers, ahead of salaried workers, farmers and freelance professionals. In certain regions both the number of pensioners and their declared incomes are above those of the other groups.

For instance, in the region of Western Greece, pensioners account for 40.1% of taxpayers and 40% of the total declared income. Statistical data processing reveals that since end-2014 the number of pensioners in Greece has shot up by 233,000. Going back to the outbreak of the crisis at the start of the decade, there is an additional 588,360: From 1,667,428 pensioners in 2010 there are now 2,255,788. The active population is therefore declining at a rapid rate: Before the economic crisis broke out, pensioners accounted for 29% of taxpayers, while today their share has climbed to 35.4%. However, the same data also reveal the dramatic shrinking of pensioners’ incomes during the crisis: Back in 2010 their declared annual income amounted to 27 billion euros, as each one of them declared an average 16,228 euros per year; today the yearly declared income of pensioners comes to just 11,175 euros, reduced by 31.13%.

The regional data are quite astonishing in terms of the growing dominance of pensioners among taxpayers: In Attica, by far the country’s most populated region, salaried workers come to 935,955 and pensioners are 804,755. The annual income of pensioners is 10.3 billion euros, according to 2018 figures, while that of salaried workers is 15.2 billion. In Western Greece, the region that includes Patra – Greece’s third city – pensioners dwarf salaried workers, as there are 153,452 of the former against just 111,979 of the latter.

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Well, actually he’s a company shill trying to stay out of jail.

Pain-Care Specialist Agrees To Testify Against Purdue (R.)

A physician ally of Purdue Pharma LP whose views helped drive the explosive growth in the use of addictive pain relievers for common aches and pains in the United States has agreed to testify against the OxyContin maker and other drug companies, newly disclosed court records show. Dr. Russell Portenoy, a professor at the Albert Einstein College of Medicine, was an early advocate for the use of opioids for chronic pain, a position he shared in medical journal articles, with regulators, at physician conferences and in other forums. He also was named as a defendant in some of the lawsuits filed by cities, counties and states seeking to hold opioid makers – including Endo and Mallinckrodt Plc – and their distributors liable for the cost of the U.S. opioid epidemic.


But Portenoy began talking to plaintiffs’ lawyers as early as January 2018 and later struck a deal with the plaintiffs to serve as a cooperating witness, the records show. In exchange for his dismissal from the suits, Portenoy provided the plaintiffs with documentation of opioid makers’ payments to him over the years, as well as a 36-page declaration that lays out what he would say on the witness stand. Portenoy’s previously confidential cooperation agreement and declaration were made public Friday as a part of a discovery ruling by David Cohen, a special master in the federal court in Cleveland, Ohio, where hundreds of the opioid lawsuits have been consolidated. In an email, Cohen said it was possible the records should have been filed under seal out of public view.

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Is it bad enough yet to call it hopeless?

Drinks Bottles Now Biggest Plastic Menace For Waterways (G.)

Plastic bottles, the detritus of our throwaway water and soft drinks habits, are the most prevalent form of plastic pollution in European waterways, according to a new report. Food wrappers, including crisp and sweet packets, were the second biggest form of plastic pollution in rivers, followed by cigarette butts. All of these forms of litter can cause problems for wildlife and fish, and are hard to clean up once they have found their way into the water. Plastic bags were found to make up only 1% of plastic rubbish in freshwater, reflecting years of efforts to reduce their use, including charges on them in the UK and many other European countries.

Consumers should be more aware of what they can do to prevent the fouling of waterways, from using cotton buds with paper sticks to binning wet wipes instead of flushing them, and bringing their own receptacles for food takeaways, according to the Plastic Rivers report from Earthwatch Europe and Plastic Oceans UK. “The products we buy every day are contributing to the problem of ocean plastic,” said Jo Ruxton, chief executive of Plastic Oceans UK. “Our discarded plastic enters rivers from litter generated by our on-the-go lifestyle and items we flush down toilets. This throwaway approach is having much more serious consequences and the report shows really simple ways to avoid this problem and stop plastic pollution.”

Although most attention on the plastic scourge has focused on the plight of oceans, about 80% of plastic rubbish flows into them from rivers. Many experts believe that focusing on the clean-up of rivers is the best way to choke off the flow of existing rubbish into seas, while the ultimate source of the problem – our dependence on throwaway plastic products – is tackled.

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Apr 062019
 


Raphael The school of Athens 1509-11

 

Allow me to start with a question: Has anyone seen any of the main newspapers and networks who went after Donald Trump for 3 years accusing him of colluding with “the Russians”, apologize to either Trump, or to their readers and viewers, for spreading all that fake news now that Robert Mueller said none of that stuff was real, that they all just made it up?

I’ve seen only one such apology, albeit a very good and thorough one, from Sharyl Attkisson for The Hill. But one is a very meager harvest of course. With over 500,000 articles on collusion published on the topic, as Axios said -leading to 245 million social media ‘interactions’, shouldn’t there be more apologies, if only so people can hold on to their faith in US media for a while longer?

 

Apologies to President Trump

With the conclusions of special counsel Robert Mueller’s probe now known to a significant degree, it seems apologies are in order. However, judging by the recent past, apologies are not likely forthcoming from the responsible parties. In this context, it matters not whether one is a supporter or a critic of President Trump. Whatever his supposed flaws, the rampant accusations and speculation that shrouded Trump’s presidency, even before it began, ultimately have proven unfounded. Just as Trump said all along. Yet, each time Trump said so, some of us in the media lampooned him.

We treated any words he spoke in his own defense as if they were automatically to be disbelieved because he had uttered them. Some even declared his words to be “lies,” although they had no evidence to back up their claims.We in the media allowed unproven charges and false accusations to dominate the news landscape for more than two years, in a way that was wildly unbalanced and disproportionate to the evidence. We did a poor job of tracking down leaks of false information. We failed to reasonably weigh the motives of anonymous sources and those claiming to have secret, special evidence of Trump’s “treason.”

As such, we reported a tremendous amount of false information, always to Trump’s detriment. And when we corrected our mistakes, we often doubled down more than we apologized. We may have been technically wrong on that tiny point, we would acknowledge. But, in the same breath, we would insist that Trump was so obviously guilty of being Russian President Vladimir Putin’s puppet that the technical details hardly mattered. So, a round of apologies seem in order.

 

It’s a shame Attkisson refrains from labeling the whole decrepit circus as “fake news”, even if she says it’s just that, in different words. It’s a shame because the term “fake news” can this way remain connected to Trump, something the mainstream media really like. Because it allows for the media to cast doubts on the Mueller report, and for the Democrats to cast doubt on AG Bill Barr.

But they, the MSM, CNN and the NYT, are the ones who, as Robert Mueller has proven, have been spreading fake news all that time, not Trump. And if you would suggest they apologize, they’ll tell you that you’re too early, wait for the report to be released, or that Bill Barr is holding tons of stuff back, or that Mueller didn’t have access to elementary info, or that Trump is a really bad person or or or.

Their reputations would be lost forever if they issue a mea culpa, and apologizing constitutes a mea culpa, so that’s not going to happen. And they all think their credibility remains sound and alive, because they live in echo chambers where they don’t have to listen to anyone prepared to cast any doubt on their credibility.

I first said it years ago: in the new -digital, social- media age, the mainstream media have only one chance of survival: report the naked truth, and be relentless about that. There are a billion voices who can write up rumors, slander, smear and other falsities, but none have the organizations to find out the truth.

Well, it looks like they gave up on that one chance. Russiagate has made it crystal clear that the MSM would rather make a quick buck than investigate, that money and political views trump veracity any day where they operate. So stick a fork in them and turn them over; they’re done.

 

April 1 was the perfect moment to add it all up, and the Babylon Bee did exactly that:

 

CNN Publishes Real News Story For April Fools’ Day

Fooling thousands of readers in a prank that the cable news organization said was “just for fun,” CNN published a real news story for April Fools’ Day this year. The story simply contained a list of facts, with no embellishment, editorializing, or invented details. The story also didn’t cite shaky “anonymous sources” and only quoted firsthand witnesses to the event. It was completely factual without any errors whatsoever. Baffled CNN fans immediately knew something was up.


“I was reading this story, and I was like, ‘Wait, what is this?'” said one man in New York who relies on CNN for his fake news every morning. “They really got me good. Then I looked up at the calendar and I realized I’d been duped. A classic gag!” “Those little rascals!” he added, shaking his head and laughing goodnaturedly. “As long as they return to their regularly scheduled fake news tomorrow, we’re good. We’re good.”

 

We could stop right there. What’s to add? It sums up America to the core. Then again, perhaps not quite yet. How about we add this from the BBC?

 

Is Facebook Winning The Fake News War?

For the people contracted by Facebook to clamp down on fake news and misinformation, doubt hangs over them every day. Is it working? “Are we changing minds?” wondered one fact-checker, based in Latin America, speaking to the BBC. “Is it having an impact? Is our work being read? I don’t think it is hard to keep track of this. But it’s not a priority for Facebook. “We want to understand better what we are doing, but we aren’t able to.”


[..] While there are efforts from fact-checking organisations to debunk dangerous rumours within the likes of WhatsApp, Facebook has yet to provide a tool – though it is experimenting with some ideas to help users report concerns.

 

Right, Facebook Fights Fake News. Right. 533,074 web articles on Trump-Russia collusion pre-Mueller report according to Axios, and 245 million ‘interactions’ -including likes, comments and shares- on Twitter and Facebook. Let’s say 100 million on Facebook.

How much did they catch as fake news in their valiant efforts? Not “the Russians” spreading fake news, but the New York Times? How about none? How many times did Facebook shut down the New York Times? Rachel Maddow? None. But Robert Mueller says all those articles about collusion were fake news.

Those reputations are gone forever. Nobody serious will ever again believe anything these people say. Oh, their own subscribers will, but they don’t count as serious people. They swallowed all the nonsense for all of that time. Get real.

 

Talking about reputations: I decided to try and follow the trails of the Steele dossier earlier, because I think if you figure out the road that dossier has traveled, who has been pushing it etc., you can get a long way towards finding out how how Russiagate came about.

I turned to Wikipedia first, where “Steele dossier” automatically becomes “Trump-Russia dossier”. I read the intro, and it was already so clear where Wikipedia stands on this: not on Trump’s side. Impartiality does not count as a virtue there either. And I know that this stuff is written by third parties, but does Jimmy Wales really want to devalue his life’s work for party politics?

Right below the intro of the very long entry, a familiar name pops up: Luke Harding, and I’m thinking HAHAHAHA!

Luke Harding, after making a mint with his book Collusion, which Robert Mueller has singlehandedly moved into the Fiction section of the bookstore, and co-writing Manafort Held Secret Talks With Assange In Ecuadorian Embassy last November, which Mueller fully discredited, is presented as a source for an entry about collusion? Oh boy.

A few paragraphs down I come upon the name Victoria Nuland, and again of course I think HAHAHAHA, what kind of source is she? Nuland became notorious for colluding with John McCain on Maidan Square in Kiyv, and she has less credibility than Harding, if such a thing is possible. A Nuland quote from the Wikipedia article:

 

“In the middle of July [2016], when he [Steele] was doing this other work and became concerned, he passed two to four pages of short points of what he was finding and our immediate reaction to that was, ‘This is not in our purview’.” “This needs to go to the FBI if there is any concern here that one candidate or the election as a whole might be influenced by the Russian Federation. That’s something for the FBI to investigate.”

The entry continues:

 

It has remained unclear as to who exactly at the FBI was aware of Steele’s report through July and August, and what was done with it, but they did not immediately request additional material until late August or early September, when the FBI asked Steele for “all information in his possession and for him to explain how the material had been gathered and to identify his sources. The former spy forwarded to the bureau several memos — some of which referred to members of Trump’s inner circle. After that point, he continued to share information with the FBI.”[57][56]

According to Nancy LeTourneau, political writer for the Washington Monthly, the report “was languishing in the FBI’s New York field office” for two months, and “was finally sent to the counterintelligence team investigating Russia at FBI headquarters in Washington, D.C.”, in September 2016.[65]

Meanwhile, in the July to September time frame, according to The Washington Post, CIA Director John Brennan had started an investigation with a secret task force “composed of several dozen analysts and officers from the CIA, the NSA and the FBI”. At the same time, he was busy creating his own dossier of material documenting that “Russia was not only attempting to interfere in the 2016 election, they were doing so in order to elect Donald Trump … [T]he entire intelligence community was on alert about this situation at least two months before [the dossier] became part of the investigation.”

 

Ergo: the fully deranged Nuland, then Assistant Secretary of State for European and Eurasian Affairs, gets the dossier to the FBI, where nothing happens with it despite Nuland’s insistence that it shows terrible things going on, until someone (McCain?!) gets it to Brennan, and then the ball gets rolling.

There’s all these people in the Hillary sphere of influence who pick it up, in the media, the House, and the FBI and CIA. Because the campaign decides a story about prostitutes peeing on a bed where Obama once slept can a be a winner, and by July 2016 a few nerves had started twitching. The entire machinery shifted into gear right then and there.

The index to the entry contains some 350 links to articles, almost all by the usual suspects and with the usual angles. It all oozes collusion. An exception is Bob Woodward in January 2017:

 

‘Garbage Document’: Woodward Says US Intel Should Apologize Over Trump Dossier

Woodward said on “Fox News Sunday” the dossier was a “garbage document” and that Trump’s point of view on the matter is being “under-reported.”Woodward said the dossier should never have been presented at an intelligence briefing and it was a mistake for U.S. intelligence officials to do so. “Trump’s right to be upset about that … Those intelligence chiefs, who were the best we’ve had, who were terrific and have done great work, made a mistake here.


And when people make mistakes, they should apologize,” said Woodward. Meantime, Woodward’s former partner in reporting on the Watergate scandal, helped report the news about the dossier on CNN last week. Carl Bernstein defended the reporting on the dossier, dismissing Trump’s contention that it was “fake news.” Bernstein argued that U.S. intelligence saw fit to present the material to President Obama and President-elect Trump.

 

“Mistakes” by the intelligence chiefs? Hard to believe, if you’ve followed Brennan, Clapper, Comey in the past 2 years.

Not sure I’m going to finish reading that Wikipedia entry on the Steele dossier. What’s the point? It’s fantasy advertized as fact in order to make money. It’s misleading, it’s fake and it seeks to damage people. It would appear we’d be better off discussing what fake news is (and what is not), and to not stick the label to everything Trump says, or the $50 million spent on the Mueller probe will have been entirely wasted.

What we can learn from it is that we can no longer trust the media we once had confidence in. Those days are gone and they won’t be back. They’ve been lying for a long time for their 30 pieces of silver, and once your credibility is gone, it’s gone for good.

That, by the way, is why we need Julian Assange so much, because we know he doesn’t lie. But of course that little fact has also already been buried in a big pile of fake news.

Orwell would be delighted.