Nov 152023
 November 15, 2023  Posted by at 6:39 pm Finance Tagged with: , , , , , , ,  15 Responses »

Ford Madox Brown King Lear and Cordelia c1851



An evil man will burn his own nation to the ground to rule over the ashes. – Sun Tzu

Après moi, le déluge – Louis XV

What I think we see happening in the past few years, and you can go back as far back as you like and look for the signs, is that the American elites, plus their UK brethren (the EU are just followers), have shifted towards an attitude of “if we can’t control the world, we will set it on fire”. That’s the light in which I think you need to see Ukraine and Gaza, as well as their upcoming move vs China. Ukraine is vs Russia, Gaza is vs Iran, the fight vs China might be Taiwan. That’s their three main goals, and they may well be intent on tackling them all at once. After all, what do you have to lose if you want to set the world on fire?

There are no American losses in all this, just some old equipment “sold” to countries, paid for by American and European taxpayers. No American soldiers or civilians are lost, well, at least officially, only Ukrainians and Palestinians (and soon, Taiwanese?). Even if there are 500,000 of them, the US doesn’t care. The term “collateral damage“ was invented for just this occasion. And they intend to cause much more of it. Already, we see Boeing expanding its arms production facilities. Raytheon and General Dynamics et al are sure to follow suit, soon. That is money. That is our future. We’re gearing up for war. They’re going to burn it all down for profit.

Ukraine, since 2014 (or before, if you will) has been the first test case. Gaza is the second. They lost Ukraine in humiliating fashion. So bad, in fact, that they still won’t admit defeat. Instead, they have people in Kiev saying the conflict will take another 5 years. As there are hardly 5 weeks of cannon-fodder soldiers left there, and their average age is 45. Did the US miscalculate the strength of the Russian army or did they just not care?

I’d go for both. The situation there, they can blame Zelensky and other Ukrainians for the losses. Anyone but DC. “They don’t understand the “sophisticated” US armory, they don’t understand the “sophisticated” US/NATO battle plans, they just die. We had no idea. We thought they were as smart as us, or something.” They will get rid of Zelensky, send him either to Monaco or Elysium, and bring in probably Zaluzhny. Though why would he want the job? To be painted a loser?


In the middle East, they have Netanyahu doing their bidding. And while they’re prodding him for more corpses, they tell you they’re trying to stop, or pause, Bibi, but “he’s gone berserk”. Well, the US cares as much about Palestinians as they do about Ukrainians. And they’d care exactly as much about Americans if there were no homefront or no elections. Which they’re pretty close to cancelling as well.

Bibi’s been dreaming about the position he’s in today for 50 years. He doesn’t care about people, or bloodshed, or dead children, he’s seeing his life long dream come true: get rid of all Palestinians. Create the promised land. This is not the world of the 1970’s, however. But Bibi doesn’t see that. He only sees his old dream. And the US elites are more than happy to help him try to achieve it. Because it means profits. And sure, also because there’s a large, and very powerful Jewish lobby in US politics. Who are as blind to today’s world as he is.

It suits the guys behind the curtain very well, thank you, that everyone blames Bibi for the atrocities in Gaza, and they never get mentioned. But he’s a puppet the same way Zelensky is, Want to kill -young- people? Here’s your tools. Our taxpayers already paid the bill.

In the US, UK, EU, the idea is that if you have enough firepower, you can do anything. What they missed, is that they no longer have that kind of firepower. Or, rather, they do, but the other side, Russia,Iran etc., has five times as much by now.

Meanwhile, the US elites have set Europe on a road to perdition. Helped along by agents such as von der Leyen, Michel and Borrell, they managed to completely destroy the continent’s future. In just 2-3 years. Remarkable. Europe could still be part of a multipolar world, but they don’t make their own decisions. Europe buys American LNG at 3-4 times what it would cost on the world market, and they refuse to say a single word about the US blowing up the vital Nordstream pipelines. No future.

So what future does the rest of the world have? Well, with the US dead-set on setting it on fire if they can’t control it, that is not an easy question. In any “conversation” where one of the parties is suicidal, odds are off. Should we move to Russia?





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Sep 092022
 September 9, 2022  Posted by at 8:11 am Finance Tagged with: , , , , , , , , , ,  63 Responses »

Andy Warhol Queen Elizabeth, Reigning Queens Series 1985


The Price Of Poker (Denninger)
Putin: The West is Failing, the Future is Asia (Celente)
Asia’s Future Takes Shape In Vladivostok, The Russian Pacific (Escobar)
Putin’s 12,000 Ton Gold Hoard Sets The Stage For Asian Bretton Woods (Macleod)
Six Months In, What Exactly Does Russia Hope To Achieve In Ukraine? (Trenin)
The Coming Victory of Native Europeans in the UK and the EU (Batiushka)
A Dirty Joke: Ukraine’s Hero Comedian President Zelensky (Celente)
Ukraine Planned To Use IAEA Experts As A Tool For Blackmail (Ritter)
Pentagon Sent GPS-Guided Rounds To Ukraine (RT)
Italy’s Berlusconi Believes He Can Help Resolve Ukraine Crisis (RT)
Germany’s Energy Suicide: An Autopsy (Escobar)
We the Silent Majority (AT)
Fell Asleep A Princess, Awoke A Queen (CD)
Hillary Plays The Victim Despite History Of Avoiding Criminal Charges (Turley)
Greece Warns Of Ukraine-style War With Turkey In East Mediterranean (MEE)



London Bridge is down.



“Can’t believe they are going to make a MAN queen. This woke nonsense has gone too far.”



Ghana TV












“For those who claim Russia is waging an “energy war” well, perhaps they are, but let’s not forget the west is attempting to wage an economic one! ”

The Price Of Poker (Denninger)

It appears that Putin’s government has announced that Nordstream I will not be restarted until western sanctions are lifted. “Russian natural gas supply via the Nord Stream pipeline to Germany will remain shut until the Western sanctions that impede gas turbine repairs are lifted, Kremlin spokesman Dmitry Peskov said on Monday. The gas crisis in Europe took a turn for the worse at the end of last week, when Russian gas giant Gazprom said after three-day maintenance ended on Friday that Nord Stream would remain shut until “operational defects in the equipment are eliminated,” upping the ante in its gas war against Europe.” As a reminder the pipeline had only one operational gas-turbine driven pump which, according to Gazprom, requires maintenance.

There are usually five of them available for service with a sixth held in reserve as a spare at that specific station through which the gas flows. As things stand now there are no spares and one sort-of-operating one that was shut down as a result of a fault discovered during an inspection. There are people saying that Russia could operate the one with the leak anyway but why does anyone believe there is any sort of duty to do so and shave the margins of safety? There clearly is no such duty and, further, the gas is Russia’s so if you think you have the right to sanction a nation and then demand they trade with you its rather obvious to me that your IQ is smaller than your shoe size. For those who claim Russia is waging an “energy war” well, perhaps they are, but let’s not forget the west is attempting to wage an economic one!

I’ve never in my life seen a “war” in which the people backing one side of it demand that the party on the other side continue to trade with them and not only that, but then attempt to put in price controls such that they demand not only the product but also what they pay for it. Putin obviously thinks that’s crazy. Now the West and Europe in particular get to choose: Either drop the sanctions or you get no gas. I fail to understand how this cannot be viewed as an entirely-reasonable position unless your view is that Russia has no right of national sovereignty at all, including the natural resources that lay within her border and those that transit same. If that’s your position — that the West has the right to impose a political and economic structure on a sovereign government then just come out and say it.

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“Beijing has been clear that it believes the world arrived at this point due to Washington’s interference in Kyiv.”

Putin: The West is Failing, the Future is Asia (Celente)

Russian President Vladimir Putin took an unveiled swipe at the U.S. Wednesday and said “Western nations” are hurting everyone — including their own people in their effort to maintain global order. “The West is failing,” Putin said. “The future is Asia.” Putin will meet with his Chinese leader Xi Jinping at the at the Shanghai Cooperation Organization summit in Uzbekistan next week, according to Russian media. Russia sees China as an economic lifeline. China is Russia’s top trade partner with total trade last year jumping 35.9 percent to a record $146.9 billion. Reuters said trade between the two countries jumped 50 percent after the 2014 annexation of Crimea. That trend has continued. During the first five months of the year, trade between the countries hit $65.81 billion, up 28.9 percent from 2021.

Despite attempts from the Biden administration, China has refused to speak out against the Russian invasion. There’s a theory that when Putin met with Xi at the Winter Olympics in Beijing, he got the Chinese leader’s blessing before the conflict. Russia would be sunk without China’s support. Sergey Lavrov, Russia’s top diplomat, has mentioned a new “world order.” “We, together with you [China], and with our sympathizers will move towards a multipolar, just, democratic world order,” Lavrov said in a video statement in April. President Joe Biden mentioned an emerging ‘new world order’ earlier that month and said it must be led by the U.S. Beijing has been clear that it believes the world arrived at this point due to Washington’s interference in Kyiv.

Shortly after the conflict started, Hua Chunying, the Chinese foreign ministry spokeswoman, said the invasion of Ukraine could have been avoided. “China has taken a responsible attitude and persuaded all parties not to escalate tensions or incite war,” she said. “Those who follow the U.S.’s lead in fanning up flame and then shifting the blame onto others are truly irresponsible.” The Russian president said the ongoing economic global crisis was triggered by elites in the West “who would not, or even cannot, acknowledge objective facts” about changes in the world. He said they only see a “world order that benefits only them, forcing everyone to live under the rules, which they invented and which they regularly break and constantly change depending on the situation,” The Global Times reported.

Putin Western elites

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“Russia is ready for winter. There will be warmth and light everywhere.”

Asia’s Future Takes Shape In Vladivostok, The Russian Pacific (Escobar)

Pavel Sorokin, Russian First Deputy Minister of Energy, dismissed the notion of a storm or typhoon in the energy markets: “It’s a far cry from a natural process. It’s a man-made situation.” The Russian economy, in contrast, is seen by most analysts as slowly but surely designing its Arctic/Asian cooperation future – including, for instance, the creation of a sophisticated trans-shipment infrastructure for Liquified Natural Gas (LNG). Energy Minister Nikolay Shulginov made sure that Russia will actually increase its gas production, considering the rise of LNG deliveries and the construction of Power of Siberia-2 to China: “We will not merely scale up the pipeline capacity but we will also expand LNG production: it has mobility and excellent purchases on the global market.”

On the Northern Sea Route, the emphasis is on building a powerful, modern icebreaker fleet – including nuclear. Gadzhimagomed Guseynov, First Deputy Minister for the Development of the Far East and the Arctic, is adamant: “What Russia has to do is to make the Northern Sea Route a sustainable and important transit route.” There is a long-term plan up to 2035 to create infrastructure for safe shipping navigation, following an ‘Arctic best practices’ of learning step by step. NOVATEK, according to its deputy chairman Evgeniy Ambrosov, has been conducting no less than a revolution in terms of Arctic navigation and shipbuilding in the last few years.

Kniessel, the former Austrian minister, recalled that she always missed the larger geopolitical picture in her discussions when she was active in European politics (she now lives in Lebanon): “I wrote about the passing of the torch from Atlanticism to the Pacific. Airlines, pipelines and waterways are moving East. The Far East is actually Pacific Russia.” Whatever Atlanticists may think of it, the last word for the moment might belong to Vitaly Markelov, from the board of directors of Gazprom: Russia is ready for winter. There will be warmth and light everywhere.”

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“There is the Chinese one kilo bar four-nines standard, which is widely owned, has already been adopted throughout Asia, and is traded even on Comex.”

Putin’s 12,000 Ton Gold Hoard Sets The Stage For Asian Bretton Woods (Macleod)

Unreported by western media, there are some interesting developments taking place in Asia over the future of currencies. Earlier this summer, it emerged that Sergei Glazyev, a senior Russian economist and Minister in charge of the Eurasian Economic Commission (EAEU), was leading a committee planning a new trade currency for the Eurasian Economic Union. [..] Logic suggests that a gold-backed currency will be the outcome of Glazyev’s EAEU committee’s trade currency deliberations after all, because of a subsequent announcement from Moscow concerning a new Russian bullion market.

In accordance with western sanctions, the London Bullion Market refused to accept Russian mined and processed gold. It was then natural for Russia to propose a new gold market based in Moscow with its own standards. It is equally sensible for Moscow to set up a price fixing committee, replicating that of the LBMA. But instead of it being the basis for a far larger unallocated gold deposit account offering by Russian and other banks, it will be a predominantly physical market. Based in Moscow, with a new market called the Moscow International Precious Metals Exchange, the Moscow Gold Standard will incorporate some of the LBMA’s features, such as good delivery lists with daily, or twice daily fixings. The new exchange is therefore being promoted as a logical replacement for the LBMA.

But could that be a cover, with the real objective being to provide a gold link to the new trade currency planned by Glazyev’s EAEU committee? Timing suggests that this may indeed be the case, but we will only know for sure as events unfold. If it is to be backed by gold, the considerations behind setting up a new trade currency are fairly straightforward. There is the Chinese one kilo bar four-nines standard, which is widely owned, has already been adopted throughout Asia, and is traded even on Comex. Given that China is Russia’s long-term partner, that is likely to be the standard unit. The adoption of the Chinese standard in the new Moscow exchange is logical, simplifying the relationship with the Shanghai Gold Exchange, and streamlining fungibility between contracts, arbitrage, and delivery.

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The focus is gradually shifting.

Six Months In, What Exactly Does Russia Hope To Achieve In Ukraine? (Trenin)

Putin’s latest comments reveal that Moscow’s thinking has shifted and compromise is no longer on the agenda Last week, Russian President Vladimir Putin referred to Ukraine as an “anti-Russian enclave” which has to be removed. He also said that the Russian soldiers taking part in the military operation there were fighting for their “own country.” These statements carry important implications. Over the last six-plus months, the mantra of the Russian officialdom has been that all aims of the offensive will be reached. On purpose, however, the specific objectives, such as how far Moscow’s forces plan move into Ukraine, have never been spelled out. This cannot but raise speculation about what the Kremlin is actually hoping to achieve. The only person who can authoritatively answer that question, however, is the president, and second-guessing him makes no sense.

Yet, two things cannot escape close attention. One is the radicalization of Moscow’s position on Ukraine as a result of both Western policies and Kiev’s actions; two is the widening gap between the minimum result of the military campaign that Russia can be satisfied with, and the maximum amount of what the US and its allies can accept. [..] Shortly after the start of hostilities Russia and Ukraine began peace talks. In late March 2022 at a meeting in Istanbul, Moscow demanded that Zelensky’s government recognize the sovereignty of the two Donbass republics within their constitutional borders, as well as Russia’s own sovereignty over Crimea, which was formally incorporated into the Russian Federation in 2014, plus accept a neutral and demilitarized status for territory controlled by Kiev.

At that point, Moscow still recognized the current Ukrainian authorities and was prepared to deal with them directly. For its part, Kiev initially appeared ready to accept Moscow’s demands (which were criticized by many within Russia as overly concessionary to Ukraine), but then quickly reverted to a hardline stance. Moscow has always suspected that this U-turn, as on previous occasions, was the result of US behind-the-scenes influence, often aided by the British and other allies. [..] As the fighting in Ukraine quickly became a proxy war between Russia and the US-led West, Russia’s views on Ukraine’s future radicalized further. While a quick cessation of hostilities and a peace settlement on Russian terms in the spring would have left Ukraine, minus Donbass, demilitarized and outside NATO, but otherwise under the present leadership with its virulently anti-Russian ideology and reliance on the West, the new thinking, as Putin’s remarks in Kaliningrad suggest, tends to regard any Ukrainian state that is not fully and securely cleansed of ultranationalist ideology and its agents as a clear and present danger; in fact, a ticking bomb right on Russia’s borders not far from its capital.

Dmitry Trenin is a Research Professor at the Higher School of Economics and a Lead Research Fellow at the Institute of World Economy and International Relations. He is also a member of the Russian International Affairs Council

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“Johnson’s unelected replacement, MissTrust..”

The Coming Victory of Native Europeans in the UK and the EU (Batiushka)

A spectre is haunting Europe – it is the spectre of poverty. The bets are now on as to which European country will collapse first. Among the front runners you will find Portugal, Latvia, Ireland, Romania, Italy, Moldova, Spain, the Czech Republic, Germany, Bulgaria, France and Slovakia. But perhaps none of them is more likely to fall first than the UK. For it has a new Prime Minister, who, unthinkably, is an even greater clown than the last one and even threatens to press the nuclear button. Let me digress for a moment with a visit to the islands off the coast of North-Western Europe.

My visit to the UK, after Wiesbaden in Germany, came at a time when the English peasants were revolting, but the governing elite did not yet know it. In one last Marie-Antoinette farewell moment the unlate, unlamented Mr Johnson advised the revolting peasants of the UK to spend £20 buying a new and more economic kettle, so that after two years (if the Chinese-made kettle lasted that long) they could save £10 a year on their £2,500 + annual energy bills. ‘Let them eat cake’, he may as well have shouted to the breadless masses. The effete and wealthy Tory Party never understood the people. Johnson’s unelected replacement, MissTrust, for whom we should beg the CIA (which has long funded Nobel Prizes) to fund a Nobel Prize for Geography (after all Mr Obama won a Nobel Prize for Peace), faces many challenges:

Firstly, there is the self-inflicted mess Mr Johnson made of Brexit, notably by separating Northern Ireland from Great Britain as regards imports and exports and failing to impose any laws for necessary immigration and against unnecessary immigration. It was the Tory Party that imposed on the British people the then Common Market (later becoming the EU) in 1973. The people never asked to join – they were never consulted. Secondly, there is the self-inflicted covid chaos. Tory-imposed lockdowns bankrupted many and were hated by even more. The much-vaunted vaccines turned out to be useless after three months, and even extremely harmful to some. Today a million vaccinated Britons have covid week in, week out. The people never asked for lockdowns and false vaccines – they were never consulted.

Thirdly, there is the self-inflicted energy crisis and the spiralling energy and food prices, caused by illegal Tory government sanctions against the Russian decision to rescue Russians from Kiev’s genocide and persecution. The people never asked to be cold and hungry – they were never consulted. Fourthly, there are the self-inflicted dramatic problems of always underfunded national infrastructure, whether that of the Health Service (people dying in their homes and in ambulances because the hospitals are so full that they have to wait for many, many hours before they can be admitted), the ‘privatised’ electricity, gas, water and telecom companies, airports and railways, which are all breaking down. The people never asked for public services which are appalling because they are private – they were never consulted.

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“Zelensky ignored four draft notices on 15 April 2015, 23 June 2014, 15 August 2014, and 10 October 2015…”

A Dirty Joke: Ukraine’s Hero Comedian President Zelensky (Celente)

During the 2019 campaign, Zelensky’s history of draft-dodging became a focal point that former President Petro Poroshenko tried to scrutinize. On April 13, 2019, Ukraine’s Defense Ministry took to Facebook to confirm that Zelensky ignored four draft notices on 15 April 2015, 23 June 2014, 15 August 2014, and 10 October 2015. “Citizen Zelensky V.O. did not arrive at the military commissariat at his call,” the post read. [..] Zelensky has been criticized since the start of the invasion for not allowing fighting-aged men to leave the country and using the strategy of issuing military summonses at gas stations and other public areas. The New York Times reported that young men in Ukraine are required to do military service “unless they fall into an exempt category, like being enrolled in a university, having a disability or having at least three children.”

The European Court of Auditors released a special report in September that found “grand corruption and state capture” were still widespread in the country despite 20 years of European Union efforts to intervene and help in its reform agenda. “The EU has long been aware of the connections between oligarchs, high-level officials, politicians, the judiciary and state-owned enterprises. However, it has not developed a real strategy for targeting grand corruption,” the auditors said in a statement. Up until the Russian invasion, the EU has been the largest donor to Ukraine. The European Commission has committed around €5.6 billion to macro-financial assistance programs and €2.2 billion to assistance programs since 2014, the statement said. The Commission also guarantees European Investment Bank loans of €4.4 billion.

Juhan Parts, the member of the European Courts of Auditors responsible for the report “despite varied support the EU has offered to Ukraine, oligarchs and vested interests continue to undermine the rule of law in Ukraine and to threaten the country’s development.” Freedom House’s 2022 report lists Ukraine as “partly free,” with a score of 61 out of a possible 100.

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No, Russia will not leave.

Ukraine Planned To Use IAEA Experts As A Tool For Blackmail (Ritter)

On August 29, Grossi’s team travelled to Kiev, where the next day they met with Ukrainian President Vladimir Zelensky. Zelensky told Grossi that Ukraine believed it was critical for the IAEA to press home its demands for a demilitarized zone, which would enable Ukraine to take control of the plant. On September 1, Grossi and his team set off for the Zaporozhye facility. Prior to their arrival, they were stopped by Ukrainian officials, who warned Grossi that military activity in and around the facility had picked up that morning. According to Russian military sources, the Ukrainian army had attempted to seize the power plant in a commando raid that was thwarted by Russian forces.

As Grossi’s 14-man team arrived at the power plant, the sound of nearby combat could be readily heard. The deteriorating security situation at the facility prompted Grossi to withdraw the bulk of his team later that day. A six-person sub-team was tasked with remaining on-site for a few days longer, after which four inspectors would depart, leaving behind a two-person element, who would provide a permanent presence, on a rotational basis, at the facility. Afterwards, Grossi stated that the mission had been valuable. “We knew a lot before too, but of course it is being inspected now. We are trying to do a thorough assessment of the current situation.”

As to the security of the plant, Grossi noted that “[t]he physical integrity of the facility has been violated not once, but multiple times. This is by no means acceptable.” In addition to their personal observations, the team was presented with a petition signed by 20,000 residents from Russia-controlled parts of the Zaporozhye region demanding that the IAEA condemn the attacks on the nuclear power plant, which the signatories said were conducted solely by the Ukrainian forces. This was not the result either the Ukrainian government or its Western backers could have envisioned when they were pushing for the mission’s dispatch in mid- to late-August.

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Pentagon Sent GPS-Guided Rounds To Ukraine (RT)

The Pentagon is spending over $90 million to acquire new M982 Excalibur munitions, Bloomberg reported on Thursday. The department is replacing a stockpile previously sent to Ukraine, according to budget documents cited in the article. The 155mm shells, each of which costs tens of thousands of dollars and may go well over $100,000, depending on the variant and year they were manufactured, are designed to strike within two meters of the GPS coordinates of a target. The munitions were developed by Raytheon and BAE and are certified to be used with a number of NATO artillery pieces, including American M777 howitzers and German PzH2000 howitzers, which Ukraine possesses.

A document issued last month says that the Pentagon will spend $92 million to purchase “replacement M982 Excalibur munitions transferred to Ukraine in support of the international effort” to undermine Russia’s military operation, as quoted by Bloomberg. The money buys roughly 900 projectiles, a military analyst estimated for the news agency. The funds come from more than $40 billion in emergency spending authorized by the Additional Ukraine Supplemental Act, which US President Joe Biden signed into law in May. The Pentagon was allocated at least half of the sum, including $9 billion to replenish US military stocks.

The US did not officially announce the delivery of Excalibur munitions to Kiev. But Ukrainian troops have shared videos on social media in which they apparently fired the shells on the battlefield. In one video, reposted by a Russian war correspondent as proof that the precision rounds were being used by the Ukrainian side, a Ukrainian soldier jokingly remarked that his unit will “throw to the wind a heap of money” before loading the munition into a gun and firing it. Canadian media reported in April that their country was quietly shipping Excalibur shells to Ukraine to complement the declared deliveries of the US-made M777 howitzers.

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“..his dream is to one day see Russia become a member of the EU..”

Italy’s Berlusconi Believes He Can Help Resolve Ukraine Crisis (RT)

Western attempts to force Russia to change course regarding Ukraine with economic sanctions are backfiring, former Italian Prime Minister Silvio Berlusconi has said. The conflict must be resolved through diplomacy, he added, offering himself and former German Chancellor Angela Merkel as potential mediators. Berlusconi, who is currently running for a seat in the Italian Senate, offered his diplomatic services on Wednesday night on the TV program Porta a Porta. Discussing the situation in Ukraine, he argued that Russia will not be swayed by sanctions from the US and its allies. The recent G7 initiative to enforce a price cap on Russian oil will also fail, since there will be high demand for Russian crude in countries like China and India, he added.

Berlusconi lamented the fact that Russia is being pushed into allying itself with China, while his dream is to one day see Russia become a member of the EU. Host Bruno Vespa asked if Berlusconi could leverage his personal relationship with Russian President Vladimir Putin. The politician said the hostilities in Ukraine have to end with diplomacy, so someone will eventually need to be the mediator between Putin and Ukrainian President Vladimir Zelensky. “There is a person who could do that instead of me or together with me. It’s former German Chancellor Angela Merkel,” he said. “With Merkel, I feel I could try to mediate and put an end to the conflict between Ukraine and Russia.”

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“It was Berlin and Brussels – mere messengers of Big Finance – which weaponized the supply of European energy on behalf of a financial racket, and against the interests of European industry and consumers.”

Germany’s Energy Suicide: An Autopsy (Escobar)

On the interminable soap opera involving the Nord Stream 1 turbine, the crucial fact is that Canada deliberately refused to deliver the repaired turbine to Gazprom – its owner – but instead sent it to Siemens Germany, where it is now. Siemens Germany is essentially under American control. Both the German and Canadian governments refuse to grant a legally binding sanction exemption for the transfer to Russia. That was the straw that broke the (Gazprom) camel’s back. Gazprom and the Kremlin concluded that if sabotage was the name of the game, they couldn’t care less whether Germany received zero gas via Nord Stream 1 (with brand new Nord Stream 2, ready to go, blocked by strictly political reasons).

Kremlin spokesman Dmity Peskov took pains to stress “problems in [gas] deliveries arose due to sanctions that have been imposed on our country and a number of companies by Western countries (…) There are no other reasons behind supply issues.” Peskov had to remind anyone with a brain that it’s not Gazprom’s fault if “the Europeans (…) make a decision to refuse to service their equipment” which they are contractually obligated to do. The fact is the whole Nord Stream 1 operation hinges on “one piece of equipment that needs serious maintenance.” Deputy Prime Minister Alexander Novak, who knows one or two things about the energy business, cleared up the technicalities:

“The entire problem lies precisely on [the EU’s] side, because all the conditions of the repair contract have been completely violated, along with the terms of shipping of the equipment.” All that is inscribed into what Deputy Foreign Minister Sergey Ryabkov describes as “a total war declared against us”, which is “being waged in hybrid forms, in all areas”, with “the degree of animosity of our opponents – of our enemies” being “enormous, extraordinary.” So none of this has anything to do with “Putin weaponizing energy”. It was Berlin and Brussels – mere messengers of Big Finance – which weaponized the supply of European energy on behalf of a financial racket, and against the interests of European industry and consumers.

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“Our political system is broken, our multicultural societies are in chaos, inflation is soaring, we’re bankrupt and awaiting possible mass civil protests in the near future..”

We the Silent Majority (AT)

We the silent majority were laughing at the ‘Woke’ Cultural Revolution and diversity obedience training years before it became fashionable. It was already obvious what would happen way back in 1993, coincidently, shortly after the collapse of the USSR when the European Union emerged offering the gullible an unhealthy dose of Gramscian Cultural Marxism disguised as freedom. As the vocal minority now scratch their collective heads at the mess they’ve created, we’re the silent majority occasionally heard muttering “I told you so.” Likewise, we are not responsible for the current political, economic and moral decline around you. We did not support corporate fascism in minimum wage gig-economies, lock downs, non-existent alternative energy sources, or an unhealthy obsession with homosexuality believing it had anything to do with freedom and democracy.

As attention spans wane due to a lack of sensationalism and the Ukraine becomes just another ongoing news item, the next self-inflicted crisis is an energy one. We silent majority raise an eyebrow as we’re told that Russia is an unreliable energy supplier sanctioned from supplying the oil needed and the reason behind rising food prices is the fault of a European drought as we had two weeks of hot sun in the summer. In our brave new world, everyone’s smiling but no one’s happy. Moreover, when we glance around us we all know something is wrong. The only difference between us is who we point our fingers at. Currently, it’s all Biden’s fault but yesterday Trump was to blame. Today it’s Russia, tomorrow it will be China (again). Russian and Chinese societies aren’t collapsing, ours are and we’ve got nowhere to flee as the stupid lash out in all directions to prolong the agony of indoctrinated beliefs they’re hiding behind.

Our political system is broken, our multicultural societies are in chaos, inflation is soaring, we’re bankrupt and awaiting possible mass civil protests in the near future; that’s if the fools in charge don’t lead us into a nuclear conflict first. Yet whilst muttering “here we go again”, nevertheless we the silent majority are prepared to join the coming mass civil disobedience protests as the minority complain about the agents of social programming they not so long ago cheered for and are too stupid to realize they’re the cause of, but think more of it is the solution.

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“Rhinos all night”

Fell Asleep A Princess, Awoke A Queen (CD)

Princess Elizabeth was deep in the Kenyan forest on the adventure of a lifetime, spotting wildlife from high up in the treetops, when her father died and she became queen. The world awoke on February 6, 1952, to the death of King George VI, who had succumbed during the night to lung cancer at the royal Sandringham residence in Norfolk. His 25-year-old daughter and heir to the throne only heard the news later the same day, when word reached Elizabeth thousands of miles from home in the wilderness of the Aberdare Range. Kenya, then a British colony, was the first stop on Elizabeth’s tour of the Commonwealth she had embarked upon with her husband, Prince Philip, in place of her ill father.

The royal couple had taken a night out of their official engagements to stay at a one-of-a-kind game-watching lodge perched in a tree in the Aberdares. It was during their night at the Treetops hotel that the king would die, and Elizabeth would become queen. Jim Corbett, the naturalist and hunter who accompanied the royal couple to Treetops, is credited with writing in the visitor book: “For the first time in the history of the world, a young girl climbed into a tree one day a Princess and, after having what she described as her most thrilling experience, she climbed down from the tree next day a queen.” In fact, the Duke of Edinburgh broke the news to Elizabeth after they had left Treetops but the story stuck and the hotel became the fabled locale where a princess became a queen.

First opened in 1932 as an overnight stay for wealthy and intrepid visitors, Treetops overlooked a watering hole from its position in a giant fig tree. In its day, there wasn’t really anything like it. A private setting among branches, remote in the African bush, Treetops offered the privileged elite a chance to encounter wildlife up close, and in safety, as they grazed below. Elizabeth and Philip kept a handwritten tally of what they saw, recorded on a sheet of paper framed at Treetops. Large herds of elephant — “about 40” in one sighting — were spotted at the watering hole, along with baboons and waterbuck. “Rhinos all night”, read the list dated February 5/6, 1952, and signed by the Princess and Prince, and “in the morning, two bulls fighting”..

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“Virtually everything about that claim is breathtakingly untrue..”

Hillary Plays The Victim Despite History Of Avoiding Criminal Charges (Turley)

“I can’t believe we’re still talking about this, but my emails. . .”: Hillary Clinton’s disbelief this week was shared by many critics left dumbfounded by her claim her private server contained “zero” classified documents. The expression of utter incredulity was classic Clinton — she’s selling hats reading “But her emails” for $30 a pop. But Hillary’s denial of what was found on her server exposes something far more serious than signature hypocrisy. It reflects establishment figures’ sense of license that they can literally rewrite history with little fear of contradiction by the media. While calling for limits on free speech over “disinformation,” Hillary has no qualms about falsely denying what published government reports detail.

“As Trump’s problems continue to mount, the right is trying to make this about me again. There’s even a ‘Clinton Standard.’ The fact is that I had zero emails that were classified,” her but-my-emails tweet continued. “Comey admitted he was wrong after he claimed I had classified emails. Trump’s own State Department, under two different Secretaries, found I had no classified emails.” Virtually everything about that claim is breathtakingly untrue. Let’s quickly deal with the light lifting before getting back to the “Clinton Standard.” A 2018 Department of Justice inspector general report revealed “81 email chains containing approximately 193 individual emails” were “classified from the CONFIDENTIAL to TOP SECRET levels at the time.” Clinton is echoing her allies’ recent spin that there were only three documents with classification markings among 33,000 emails. It is utter nonsense.

The Clinton email scandal is a scandal because these were emails. There is no classification automatically stamped on text being typed out and sent within minutes. While attachments can have classification markings, the whole point of using secure servers is that emails are created in the moment with inevitable slips in referencing classified material. Nevertheless, the emails had classified information, including top-secret information tied to “Special Access Programs.” Yet some allies emphasize the inspector general also noted that in some cases there was “conscious effort to avoid sending classified information, by writing around the most sensitive material.” It failed. The emails still contained classified information.

That’s why she was reckless to use her own server: Such mistakes on private servers are more vulnerable to capture by foreign intelligence services. Indeed, according to the FBI, “hostile actors gained access” to some of the information through the emails of Clinton’s associates and aides. “Comey admitted he was wrong. It’s not clear what Hillary is referencing here. But Comey never said there was no classified information in her emails — he said the opposite. He condemned her handling of the classified material while saying it didn’t warrant prosecution. Comey did backtrack later, but not on this point. He said his “mistake” was in how he described her conduct: “I should’ve worked harder to find a way to convey that it’s more than just the ordinary mistake, but it’s not criminal behavior, and find different words to describe that.”

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For now it’s just words.

Greece Warns Of Ukraine-style War With Turkey In East Mediterranean (MEE)

Tensions are boiling in the Eastern Mediterranean, with Greece saying the region risks falling into a war similar to that seen in Ukraine after Turkey raised the spectre of military action against its neighbour. Turkey and Greece have long been enmeshed in a series of disputes, including over maritime rights, the sovereignty of Aegean islands, natural gas and airspace boundaries. The Nato allies had a brief rapprochement after Russia’s invasion of Ukraine, with Greek Prime Minister Kyriakos Mitsotakis making a rare visit to President Recep Tayyip Erdogan in Istanbul. Relations have, however, since plummeted. On Tuesday, Erdogan reiterated a veiled threat, stating Turkey could “come all of a sudden one night,” in response to what he claimed were hostilities emanating from Greece.

“What I’m talking about is not a dream,” he said at a press conference in the Bosnian capital, Sarajevo. “If what I said was that we could come one night all of a sudden [it means] that, when the time comes, we can come suddenly one night.” The comments sparked an outcry in Greece, a country of 10 million people which fought a brutal war of independence from the Ottoman Empire in the 19th century. Many parts of Greece remained under Ottoman control before the empire’s collapse after the First World War. This year marks the 100th anniversary of the Greek-Turkish war of 1919-1922 and, on 30 August, Turkey celebrated Victory Day, when it drove Greek forces from Anatolia.

The war culminated in the population exchanges between the two countries known in Greece as the Catastrophe, and the battle over Greek-majority cities along the Anatolian coast, such as Smyrna, which is today the city of Izmir. On Saturday, Erdogan made a pointed reference to the city, stating “Greece, look at history, go back in time; if you go too far, the price will be heavy. We have one thing to say to Greece: Remember Izmir.” In response, Athens sent letters to Nato, the European Union and the United Nations slamming what it called Erdogan’s “openly threatening” and “inflammatory” statements. The letters called for the organisations to condemn Erdogan’s statements, which they said “imbue the Turkish people with hatred, enmity and contempt towards their Greek neighbors”.

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Romanian MEP Cristian Terhes



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Aug 272016
 August 27, 2016  Posted by at 9:22 am Finance Tagged with: , , , , , , , ,  10 Responses »

Jack Delano Mother of three, wiper at the roundhouse. Chicago & North Western R.R.” 1943

America’s Biggest Economic Problem: Nobody Is Investing For Tomorrow. (MW)
The Stimulus Our Economy Needs (Da Costa)
Grim Employment Prospects For Young People Around The World (Economist)
Fed’s Jackson Hole Circus
Bill Gross Says Yellen’s Economy ‘May Never Walk Normally Again’ (BBG)
Losses Piling Up for S&P 500 as Weekly Drop Is Worst Since June (BBG)
World’s Biggest Pension Fund Loses $52 Billion in Q2 Stock Rout (BBG)
Why No One Trusts China’s Markets (Balding)
Theresa May Will Trigger Brexit Negotiations Without Commons Vote (Tel.)
BleachBit Brags It “Stifled FBI Investigation” Of Hillary Clinton (ZH)
Majority Of Greek Properties Valued Under €50,000 (Kath.)
We Don’t Know What We Are Talking About When We Talk About Religion (Taleb)



“America’s Investment In Its Own Future Is In A Depression”. As epitomized by share buybacks. Which in turn are simply an expression of ‘the thing that shall not be mentioned’: a lack of confidence in growth, and in the economy as a whole. Why invest when there will be no return?

America’s Biggest Economic Problem: Nobody Is Investing For Tomorrow. (MW)

The U.S. economy, by some measures, has recovered from the Great Recession: The unemployment rate is only half what it was at the worst, real gross domestic product is about 10% larger than the previous peak, and personal wealth has risen by more than $20 trillion as the stock market and the housing market have bounced back. But everyone knows the recovery has been uneven. Total employment may have grown by 6 million since the recession began in 2008, but employment in manufacturing is down nearly 1.5 million. Real disposable incomes may be up by 16%, but because most of the increase has been captured by the richest sliver of society, the median family’s annual inflation-adjusted income is still down more than $3,000.

Most troubling, there’s still very little investment in the buildings, equipment and intellectual property that we ought to be putting into place today as the foundation of our prosperity tomorrow. Who’s preparing the United States for the 21st century? Nobody, really. Not the 22 million private businesses, not the 118 million households, and not the 90,000 state, local or federal government agencies. Since the recession, investments have fallen sharply, and they haven’t gotten back up again. It seems that everyone is still scarred by the Great Recession, and by the collapse of asset bubbles in 2000 and 2006. Gross domestic investment totaled about $3.6 trillion in the second quarter of 2016, about 20% of gross domestic product. That may seem a large sum, but it’s the lowest share of GDP, except during recessions, since 1947.

And, unfortunately, even that weak number grossly exaggerates the actual contribution of this investment in creating new productive capacity for the economy. Why is the figure exaggerated? Because these data are reported on a gross basis, without subtracting the depreciation of capital assets such as equipment, buildings, software and the like. After you subtract the capital that’s used up, net investment totaled only about $750 billion in the second quarter, or 4% of GDP, about half of the average over the post-war period. In fact, net investment has been running at the lowest rates since the Great Depression of the 1930s, suggesting that U.S. investment itself is in a depression.

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Makes some sense, but relies too much on the assumption that policy makers know what they do. They don’t.

The Stimulus Our Economy Needs (Da Costa)

All told, nearly 9 million jobs were lost during the 2007-2009 slump, not counting the new jobs that were needed to keep up with population growth. The unemployment rate more than doubled to a peak of 10.2% in October 2009 and took seven years to get back to around 5%, seen as normal. Even the current 4.9% rate is seen as a poor depiction of the U.S. labor market’s actual ongoing weakness. So what would a constructive pro-jobs policy of employment insurance look like? It could take many forms, and, despite any central bank role in funding the stimulus, the decision on how to spend the money would remain fully accountable to the democratic process — in the hands of elected lawmakers.

One approach might see Congress adopt a mandate similar to the one it assigned the Fed itself — to maintain low and stable prices while striving for maximum sustainable employment. Such a goal would offer clearer guidelines for when a program of budget spending aided by central bank intervention might be needed, like determining what thresholds of economic pain might trigger its launch. Rather than relying on a spotty, limited system of jobless benefits that can leave the unemployed in or close to poverty, wouldn’t it be better to directly create government jobs in areas where the private sector appears to be falling short?

Employer-of-last-resort-type policies, as proposed by the economist Hyman Minsky, where the government generates employment in socially useful sectors that are underserved by the private sector alone — including infrastructure, education, health care, child and elderly care, and the arts — could be optimal. After all, most people would agree instinctively with Article 23 of the Universal Declaration of Human Rights, adopted by the U.N. in 1948, which states, “Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.”

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Same difference: no investments in the future.

Grim Employment Prospects For Young People Around The World (Economist)

A new report from the International Labour Organisation has provided a snapshot of job prospects for young people around the world. Things have worsened this year following a period of slight improvement. Unemployment among 15-24-year-olds has risen to 13.1% in 2016 and is close to its historic peak of 2013. The rate is highest in Arab countries, at 30.6%, and lowest in East Asia, at 10.7%. The report also finds that even where jobs are available to young people, they often fail to provide secure incomes.

Youth unemployment is typically lower in poorer countries than in rich ones. This is because workers in less-developed countries have to take work just to make ends meet and, with few choices, end up in low-paid jobs with no security. Even in richer countries, the young often end up in less-secure employment than the older generation. In 2015, 25% of young workers in OECD countries were in temporary jobs and 26% were employed part-time, often on an involuntary basis. Those rates are more than twice as high as for workers aged 25 to 54.

In fact, young people with jobs are now at greater risk of living in poverty than the elderly in some rich countries. This is especially true in places where there has been a sharp economic shock, such as Greece, Romania and Spain. The need to work to supplement household income in the short-term creates a vicious cycle in which the young forgo training in the skills required for better long-term job prospects. Given the bleak future faced by many, it is little surprise that 40% of 15-29-year-olds in Africa, eastern Europe and Latin America would countenance a permanent move abroad.

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“Friday, almost six years to the day, marked the anniversary of former Fed Chairman Ben Bernanke’s address to the Jackson Hole confab, at which he outlined the second phase of quantitative easing [..] Since then, Wilshire Associates estimates the value of U.S. equities has increased by over 100%, some $13.3 trillion..”

Fed’s Jackson Hole Circus

The Fed has fueled the populism that has thrown this year’s U.S. elections into an unprecedented tizzy, the Journal wrote in more considered terms in a page-one feature on Friday. While the central bank dealt forcefully with the 2007-08 financial crisis, it failed to anticipate it and subsequently failed to bring about a recovery worthy of the name. What it has accomplished is a massive inflation, not of consumer prices—as officially measured, at least—but of asset prices. Friday, almost six years to the day, marked the anniversary of former Fed Chairman Ben Bernanke’s address to the Jackson Hole confab, at which he outlined the second phase of quantitative easing (central bank–speak for securities purchases to pump money into the financial system), which was popularly dubbed QE2.

Since then, Wilshire Associates estimates the value of U.S. equities has increased by over 100%, some $13.3 trillion. Since Bernanke outlined QE3 in September 2012, U.S. equities are up about 50%, or $8.6 trillion, by Wilshire’s reckoning. In the process, interest rates have hovered at or near record-low levels, tonic for asset values but poison for savers. The uneven impact of the Fed’s policies among the haves and have-nots has further stoked resentment against the monetary authorities. Low yields and inflated asset prices mean modest future returns for all. But though it is equally illegal for the beggar and the king to sleep under the bridge, low returns are less of a burden for those who have already accumulated wealth than for those who have not.

None of this sociology and politics should influence the Fed, but it is an inescapable backdrop to policy decisions. Based on the data on which the central bank professes to depend, the “case for an increase in the federal-funds rate has strengthened in recent months,” Yellen said in her much-anticipated address to the Jackson Hole gathering.

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“Credit-enhanced cycles come to worse ends than the normal kind.”

Bill Gross Says Yellen’s Economy ‘May Never Walk Normally Again’ (BBG)

Bill Gross, the billionaire Janus Capital Group Inc. money manager, criticized Fed Chair Janet Yellen’s suggestion that she could consider further asset purchases as the equivalent of “providing a walker or a wheelchair for an ailing economy.” Yellen, speaking Friday at a conference of central bankers and economists in Jackson Hole, Wyoming, said while the U.S. economy has strengthened to the point that interest rate hikes are possible, further asset purchases must remain part of the Fed’s toolkit. Gross, who runs the $1.5 billion Janus Global Unconstrained Bond Fund, has long criticized central bankers in the U.S., Europe and Japan for keeping interest rates ultra-low and artificially inflating asset prices without adding sustainable economic growth.

“She is opening the door to creating even greater asset bubbles as have the BOJ and ECB and SNB by purchasing corporate bonds and stocks,” Gross wrote Friday in an e-mail response to questions. “This is not capitalism. This is providing a walker or a wheelchair for an ailing economy. It may never walk normally again if monetary policy continues in this direction.” Gross said Yellen’s comments didn’t take a September rate hike off the table, especially if job growth is healthy. The Labor Department reports August employment data on Sept. 2. The probability of a hike at the Sept. 21 Fed meeting has risen to 38% from 15% two weeks ago, according to data compiled by Bloomberg.

“To the extent that next month we see a decent job growth number, then I think for sure or close to for sure, you know, in September we’re going to see a Fed hike of 25 basis points,” Gross said in an interview on CNBC. “The market hadn’t expected that.” Tad Rivelle, chief investment officer of fixed income at TCW Group, warned that central bank intervention to keep rates low and prop up asset prices may worsen the impact of an inevitable end to the current credit cycle. “Every cycle in human history has ultimately come to an end,” Rivelle, who helps oversee $195 billion for TCW, said in a Bloomberg Television interview Friday. “Credit-enhanced cycles come to worse ends than the normal kind.”

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“Not since the presidential administration of Lyndon B. Johnson have stocks done so little for so long.”

Losses Piling Up for S&P 500 as Weekly Drop Is Worst Since June (BBG)

What had been just a sleepy August is turning into an increasingly painful one for U.S. equity market bulls. Notwithstanding an hour-long burst of optimism that followed Federal Reserve Chair Janet Yellen’s policy speech Friday, the buoyancy that lifted stocks for the first half of the summer has now been missing for the better part of a month. The S&P 500 Index fell 0.7% to 2,169.04 this week, the biggest drop since June, to erase its August gains. Not since the presidential administration of Lyndon B. Johnson have stocks done so little for so long. Unable to break out of a 1.5% band for more than 30 days, the market is locked in its tightest trading range since the end of 1965 amid confusion about Federal Reserve policy and the outlook for earnings.

While losses remain tiny day to day, they’re starting to pile up, with the S&P 500 declining in five of the last six sessions. The Dow Jones Industrial Average slipped 157.17 points in the week to 18,395.4, while the Nasdaq Composite Index retreated 0.4% to 5,218.92. At about 5.8 billion shares, daily volume in U.S. exchanges was lower this week than in any non-holiday period since June 2015. “Once we dug into the report from Yellen, it was kind of a non-event, and we’re ending in the same range we started the week,” Chris Gaffney, president of world markets at St. Louis-based EverBank, said by phone. “The data we got this week was mixed. There’s no clear direction and that’s why we’re sitting in these ranges.”

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Guess the Japanese simply don’t understand what Abe does to their pensions.

World’s Biggest Pension Fund Loses $52 Billion in Q2 Stock Rout (BBG)

The world’s biggest pension fund posted a $52 billion loss last quarter as stocks tumbled and the yen surged, wiping out all investment gains since it overhauled its strategy by boosting shares and cutting bonds. Japan’s Government Pension Investment Fund lost 3.9%, or 5.2 trillion yen ($52 billion), in the three months ended June 30, reducing assets to 129.7 trillion yen, it said in Tokyo on Friday. That erases a 4.1 trillion yen investing return for the previous six quarters starting October 2014, the month it decided to put half its assets into equities. The quarterly decline follows a 5.3 trillion yen loss in the fiscal year through March, the worst annual performance since the global financial crisis.

After benefiting from a surge in Japanese equities and a weaker yen earlier in Prime Minister Shinzo Abe’s term, GPIF has posted losses as domestic stocks tumble and gains in the currency reduce the value of overseas assets. Still, for Sumitomo Mitsui Trust Bank Ltd., that’s no reason to veer from the current approach. “Since its investments are tied to market moves, it’s natural that this would happen and there’s no point looking at it with a short-term view,” said Ayako Sera, a Tokyo-based market strategist at the bank. “GPIF is so big that its losses look huge even though the fluctuations in its investments just mirror the market.”

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“Regulators assess a company’s balance sheet and history, mandate an offering price, and then let the market figure out who might be lying or hiding things.”

Why No One Trusts China’s Markets (Balding)

When China’s top securities regulator said recently that it plans to delist Dandong Xintai Electric for falsifying initial public offering documents, it didn’t grab many headlines. But it suggested some far-reaching changes may be afoot. Xintai is the first company to be expelled from Shenzhen’s ChiNext board for such an offense, and one of only a handful that have ever been delisted in China. Its expulsion suggests that regulators are facing up to some unfortunate truths about China’s capital markets. Those markets are, in important ways, only superficially market-like. In the stock market, the government has intervened on a huge scale to prop up prices. Investment in the bond market is overwhelmingly directed to state-owned enterprises. There’s no derivatives market to speak of.

Financial disclosures are often implausible, suspicions of insider trading are rife and doubts about corporate governance are widespread. All these are symptoms of a common ailment: a regulatory system focused not on disclosure and market mechanics but on setting asset prices and allocating returns. In most countries, when companies are considering an IPO, regulators require them to accurately disclose information, then let markets dictate prices. In China, the reverse holds true: Regulators assess a company’s balance sheet and history, mandate an offering price, and then let the market figure out who might be lying or hiding things. The result is that investors, both domestic and foreign, have lost confidence in China’s markets.

Foreign portfolio investment into China is down 60%, year over year, through July. MSCI has repeatedly declined to include China’s domestic equities in its benchmark indexes. Even the much-celebrated Chinese retail investor is staying on the sidelines: Individual investment accounts holding less than 500,000 yuan declined to 46.8 million last month, from 47.4 million in July 2015. This credibility deficit affects all areas of the markets. Major Chinese commercial banks have been trading at a price-to-equity ratio of about five – compared to an average of about 12 for commercial banks elsewhere – because investors think their loan portfolios are much worse off than they’re letting on.

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Somone will try to stop her.

Theresa May Will Trigger Brexit Negotiations Without Commons Vote (Tel.)

Theresa May will not hold a parliamentary vote on Brexit before opening negotiations to formally trigger Britain’s withdrawal from the European Union, The Telegraph has learned. Opponents of Brexit claim that because the EU referendum result is advisory it must be approved by a vote in the Commons before Article 50 – the formal mechanism to leave the EU – is triggered. However, in a move which will cheer Eurosceptics, The Telegraph has learned that Mrs May will invoke Article 50 without a vote in Parliament It had been suggested – by Tony Blair, the former Labour Prime Minister, and Owen Smith, the Labour leadership candidate, among others – that Remain-supporting MPs could use a Parliamentary vote to stop Brexit.

But sources say that because Mrs May believes that “Brexit means Brexit” she will not offer opponents the opportunity to stall Britain’s withdrawal from the EU. A Downing Street source said: “The Prime Minister has been absolutely clear that the British public have voted and now she will get on with delivering Brexit.” Mrs May has consulted Government lawyers who have told the Prime Minister she has the executive power to invoke Article 50 and begin the formal process of exiting the European Union without a vote in Parliament. Her decision will come as a blow to Remain campaigners, who had been hoping to use Parliament to delay or halt Brexit entirely.

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And it will yet get crazier.

BleachBit Brags It “Stifled FBI Investigation” Of Hillary Clinton (ZH)

Yesterday we noted that South Carolina Representative Trey Gowdy revealed that Hillary had used a software called “BleachBit” to wipe her servers clean. Gowdy, appearing on Fox News, suggested that using a software like “BleachBit” undermines her claims that she only deleted innocuous “personal” emails from her private server. Specifically, Gowdy told Fox News:

“If she considered them to be personal, then she and her lawyers had those emails deleted. They didn’t just push the delete button, they had them deleted where even God can’t read them. “They were using something called BleachBit. You don’t use BleachBit for yoga emails.” “When you’re using BleachBit, it is something you really do not want the world to see.”

Now, the BleachBit team is using the whole controversy as a marketing tool with a note on their website entitled “BleachBit stifles investigation of Hillary Clinton.” The site even incorporates the now-famous Clinton gaffe where she asked reporters if they wanted to know whether she had wiped her servers clean “like with a cloth or something” pointing out that “it turns out now that BleachBit was that cloth.”

Last year when Clinton was asked about wiping her email server, she joked, “Like with a cloth or something?” It turns out now that BleachBit was that cloth.

The BleachBit team also points out that they have not been served with any warrants or subpoenas at this time even though it doesn’t really matter because the “cleaning process is not reversible.”

As of the time of writing BleachBit has not been served a warrant or subpoena in relation to the investigation. BleachBit is free of charge to use in any environment whether it is personal, commercial, educational, or governmental, and the cleaning process is not reversible.

Finally, BleachBit points out they’re receiving overwhelming interest from folks looking to permanently erase yoga and bridesmaid emails and/or other similar incriminating information.

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Compare that to other EU nations.

Majority Of Greek Properties Valued Under €50,000 (Kath.)

74% of real estate owners in Greece have property whose taxable value does not exceed 100,000 euros, according to data published on Friday by the Finance Ministry. More precisely, one in two own property that is valued by tax authorities at 50,000 euros or less, while just 8% of real estate owners have property worth between 100,000 and 200,000 euros. The total taxable value of the properties owned by the two groups has been calculated by the ministry, respectively, at 63.6 billion euros and 132 billion euros.

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Taleb targets Salafism.

We Don’t Know What We Are Talking About When We Talk About Religion (Taleb)

People rarely mean the same thing when they say “religion”, nor do they realize that they don’t mean the same thing. For early Jews and Muslims, religion was law. Din means law in Hebrew and religion in Arabic. For early Jews, religion was also tribal; for early Muslims, it was universal[i]. For the Romans, religion was social events, rituals, and festivals –the word religio was a counter to superstitio, and while present in the Roman zeitgeist had no equivalent concept in the Greek-Byzantine East[ii]. Law was procedurally and mechanically its own thing, and early Christianity, thanks to Saint Augustine, stayed relatively away from the law, and, later, remembering its foundations, had an uneasy relation with it. For instance, even during the Inquisition, a lay court handled the sentencing.

The difference is marked in that Christian Aramaic uses a different word: din for religion and nomous (from the Greek) for law. Jesus, with his imperative “give to Caesar what belongs to Caesar”, separated the holy and the profane: Christianity was for another domain, “the kingdom to come”, only merged with this one in the eschaton. Neither Islam nor Judaism have a marked separation between holy and profane. And of course Christianity moved away from the solely-spiritual domain to embrace the ceremonial and ritualistic, integrating much of the pagan rites of the Levant and Asia Minor.

For Jews today, religion became ethnocultural, without the law – and for many, a nation. Same for Syriacs, Chaldeans, Armenians, Copts, and Maronites. For Orthodox and Catholic Christians religion is aesthetics, pomp and rituals, plus or minus some beliefs, often decorative. For most Protestants, religion is belief with neither aesthetics, pomp nor law.

Further East, for Buddhists, Shintoists and Hindus, religion is practical and spiritual philosophy, with a code of ethics (and for some, cosmogony). So when Hindu talk about the Hindu “religion” they don’t mean the same thing to a Pakistani as it would to a Hindu, and certainly something different for a Persian. When the nation-state idea came about, things got much, much more complicated. When an Arab now says “Jew” he largely means something about a creed; to Arabs, a converted Jew is no longer a Jew. But for a Jew, a Jew is someone whose mother is a Jew. (This has not always been the case: Jews were quite proselytic during the early Roman empire). But Judaism, thanks to modernism, somewhat merged into nation-state, and now can also mean a nation.

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Aug 312015
 August 31, 2015  Posted by at 8:41 pm Finance Tagged with: , , , , , ,  4 Responses »

Dorothea Lange Hoe culture in the South. Poor white, North Carolina July 1936

Nicole Foss recently participated in a live Google Hangouts (not Skype. I’m told) ‘forum’ discussion at the Doomstead Diner site that also included among others, Gail Tverberg, Steve Ludlum, Norman Pagett and Ugo Bardi. Apologies for the fact that I haven’t watched the videos yet and I’m getting the details as I go, so my info will be a bit sketchy.

I’ll run this in episodes. Today’s post contains episode 4. Previously, I posted episode 2 and 1,

Nicole Foss Talks Economics At The End Of The Age Of Oil


Nicole Foss Talks Energy Industry Issues and Oil Price Collapse.

Episode 3 has apparently not even been recorded yet, but we’ll post it as soon as it is available,

Part IV- Futurology

The Doomstead Diner site blurb:

Renewable Energy
One of the biggest hopes as the fossil fuels run thin or become too expensive to dig up is a switch to renewable forms of energy. How can such forms of energy be utilized, and how much of our current technological society can be maintained with the renewables?

Building Community
As the larger structures of society begin to break down, a more localized organizational structure will become necessary, both on the food production and distribution level as well as new political organizations. How can communities come together and create the kind of structures necessary for a low per capita energy society of the future?

Psychology of Collapse
Collapse is creating many psychological issues and problems as it progresses and accelerates. More people are under more stress all the time, losing jobs, losing their homes to foreclosure, becoming homeless, waiting on long bread lines for food aid etc. We read daily about increasing suicide rates and the number of mass shootings is also on the increase, recently there were 142 mass shootings catalogued in 142 days, 1 every day. How can we handle these psychological problems that are cropping up, and likely will worsen as the overall economy worsens?

Prognosticating the Future
The toughest part in all of these discussions is trying to figure out what is going to occur in the future, and when it will occur. What is the timeline? Will we see a major breakdown of systems and a Fast Collapse scenario, or will it be a long slow “boiling frog” effect, the “Long Emergency” described by Jim Kunstler or the “slow catabolic collapse” described by John Greer? What can people do now to prepare for this future, especially if they are still dependent on a currently held job in a location which might not be too good in the future, like say they live currently in Las Vegas and have a well paid job in one of the casinos there?

Aug 312015
 August 31, 2015  Posted by at 8:48 am Finance Tagged with: , , , , , , , , , ,  10 Responses »

Dorothea Lange Farm family fleeing OK drought for CA, car broken down, abandoned Aug 1936

Perhaps Angela Merkel thought we didn’t yet know how full of it she is. Perhaps that’s why she said yesterday with regards to Europe’s refugee crisis that “Everything must move quickly,” only to call an EU meeting a full two weeks later. That announcement show one thing: Merkel doesn’t see this as a crisis. If she did, she would have called for such a meeting a long time ago, and not some point far into the future.

With the death toll approaching 20,000, not counting those who died entirely anonymously, we can now try to calculate and predict how many more will perish in those two weeks before that meeting will be held, as well as afterwards, because it will bring no solution. Millions of euros will be promised which will take time to be doled out, and further meetings will be announced.

But the essence remains that Europe doesn’t want a real solution to the crisis. That’s why Merkel refuses to acknowledge it as one. The only solution Europe wants is for the refugees to miraculously stop arriving on its shores. If more people have to drown to make that happen, Berlin and Brussels and London and Paris are fine with that.

If those who make it must be humiliated by not making basic needs available, by letting them walk dozens if not hundreds of miles in searing heat, then the so-called leaders are fine with that too.

Europe needs leadership but it has none. Zero. At the exact moment that it is time for all alleged leaders to stop talking about money, and start talking about human lives. It’s matter of priorities, and everything Europe has done so far points to nobody in charge having theirs straight.

That goes for Greece too: Tsipras, Varoufakis, all of them, need to stop campaigning on money issues, and direct their attention towards lives lost. That may well lead to a Grexit not on financial grounds, but on humanitarian ones. And those are much better grounds on which to leave Europe. Get your priorities straight.

Europe needs to, first, meet tomorrow morning and engage in immediate action to facilitate humane treatment of all refugees. And then it needs to call subsequent meetings at the highest levels to look at the future of this crisis. Not doing this guarantees an upcoming disaster the scope of which nobody can even imagine today.

The media focus on a truck in Austria where 70 human beings died, and on a handful of children somewhere who were more dead than alive when discovered. These reports take away from the larger issue, that there are dozens such cases which remain unreported, where there are no camera’s present and no human interest angle to be promoted that a news outlet thinks it can score with.

Brussels and Berlin must throw their energy and their efforts at ameliorating the circumstances in the countries the refugees are fleeing. They need to acknowledge the role they have played in the destruction of these countries. But the chances of any such thing happening are slim to none. Therefore countries like Greece and Italy must draw their conclusions and get out, or they too will be sucked down into the anti-humanitarian vortex that the EU has become.

Europe needs to look at the future of this crisis in very different ways than it is doing now. Or it will face far bigger problems than it does now.

Italy’s Corriere della Sera lifted part of the veil when it said last week (Google translation):

The desperation of millions of human beings, manipulated by traffickers and by terrorist groups is also an instrument of disintegration of the countries of origin and of destabilization of the host countries.

It is estimated that sub-Saharan Africa will have 900 million more inhabitants in the next twenty years. Of these, at least 200 million are young people looking for work. The chaos of their countries of origin will push them further north.

That is the future. It will no more go away by itself, and by ignoring it, than the present crisis, which, devastating as it may be, pales in comparison. Europe risks being overrun in the next two decades. And as things stand, it has no plans whatsoever to deal with this, other than the military, and police dogs, barbed wire, tear gas, fences and stun grenades.

This lack of realism on both the political and the humane level will backfire on Europe and turn it into a very unpleasant place to be, both for Europeans and for refugees. Most likely it will turn the entire continent into a warzone.

The only solution available is to rebuild the places in Syria and Libya et al that the refugees originate from, and allow them to live decent lives in their homelands. If Brussels, and Washington, fail to realize this, things will get real ugly. We haven’t seen anything yet.

At present, it is as impossible for Greece and Italy to define their own policies on the refugee issue as it is on their economic policy. They will be drawn down with the rest of the continent if they allow the EU to take charge of either issue, but the most important one today is the refugee crisis.

Stop talking about money, start talking about people. Or you will desperately regret it in the years to come. Consider yourselves warned.

Aug 152015
 August 15, 2015  Posted by at 1:54 pm Finance Tagged with: , , , , , , ,  13 Responses »

Gustave Doré Dante and the Angel of the Church before the Door of Purgatory 1868

We’re going to try something a little different. Nicole wrote another very long article and I suggested publishing it in chapters; this time she said yes. So in the next five days we will post five different chapters of the article, one on each day, and then on day six the whole thing. That way, you will have some time left over to spend with your families… 😉

Just so there’s no confusion: the article, all five chapters of it, was written by Nicole Foss. Not by Ilargi.


A great deal of intelligence is invested in ignorance when the need for illusion is deep.
Saul Bellow, 1976

More and more people (although not nearly enough) are coming to recognise that humanity cannot continue on its current trajectory, as the limits we face become ever more obvious, and their implications starker. There is a growing realisation that the future must be different, and much thought is therefore being applied to devising supposed solutions for that future. These are generally attempts to reconcile our need to make changes with our desire to continue something very much resembling our current industrial-world lifestyle, with a view to making a seamless transition between the now and a comfortably familiar future. The presumption is that it is possible, but this rests on foundational assumptions which vary between the improbable and the outright impossible. It is a presumption grounded in a comprehensive failure to understand the nature and extent of our predicament.

We are facing limits in many ways simultaneously – not surprising since exponential growth curves for so many parameters have gone critical in recent decades, and of course even more so in recent years. Some of these limits lie in human systems, while others are ecological or geophysical. They will all interact with each other, over different timeframes, in extremely complex ways as our state of overshoot resolves itself (to our dissatisfaction, to put it mildly) over many decades, if not centuries. Some of these limits are completely non-negotiable, while others can be at least partially mutable, and it is vital that we know the difference if we are to be able to mitigate our situation at all. Otherwise we are attempting to bargain with the future without understanding our negotiating position.

The vast majority has no conception of the extent to which our modernity is an artifact of our discovery and pervasive exploitation of fossil fuels as an energy source. No species in history has had easy, long term access to a comparable energy source. This unprecedented circumstance has facilitated the creation of turbo-charged civilization.

Huge energy throughput, in line with the Maximum Power Principle, has led to tremendous complexity, far greater extractive capacity (with huge ‘environmental externalities’ as a result), far greater potential to concentrate enormous power in the hands of the few with destructive political consequences), a far higher population, far greater burden on global carrying capacity, and the ability to borrow from the future to satisfy the insatiable greed of the present. The fact that we are now approaching so many limits has very significant implications for our ability to continue with any of these aspects of modern life. Therefore, any expectation that a future in the era of limits is likely to resemble the present (with a green gloss) are ill-founded and highly implausible.

The majority of the Big Ideas with which we propose to bargain with our future of limits to growth rests on the notion that we can retain our modern comforts and conveniences, but that somehow we will do so with far less resource use, and with a fraction of the energy we currently employ. The most mainstream discussions revolve around ‘green growth’, where it is suggested that eternal economic growth can occur on a finite planet, and that we will magically decouple of that growth from the physical basis upon which it rests. Proponents argue that we have already accomplished this to an extent, as the apparent energy intensity of developed state economies has fallen.

In actuality, all that has happened is that the energy deployed to provide developed world comforts has been used in the emerging markets where goods destined for our markets are manufactured, so that the consumption falls within someone else’s energy budget. In reality there has been no decoupling at all. Economic growth requires energy, and there is an exceptionally high correlation between the two. Even the phantom growth of the bubble era, based on the expansion of virtual wealth, requires energy in order to maintain the complexity of the system that generates it.

It is crucial that we understand the boundaries of solution-space, in order to be able to focus our finite resources (in every sense of the word) on that which is inherently workable, at least in theory. ‘Workable In theory’ implies that, while there is no guarantee of success given a large number of unpredictable factors, there is also no obvious prima facie barrier to success. If, however, we throw our resources at ideas that are subject to such barriers, and therefore lie beyond solution space, we guarantee that those initiatives will fail and that the resources so committed will have been wasted. It is important to note that ‘success’ does not mean being able to maintain anything remotely resembling business as usual. It refers to being able to achieve the best possible outcome under the circumstances.

Sculptors work by carving away excess material in order to reveal the figure within the block they are working with. Similarly, we can carve away from the featureless monolith of conceivable approaches those that we can see in advance are doomed to fail, leaving us with a figuratively coherent group of potentially workable ideas. In order to carve away the waste material and get closer to a much smaller set of viable possibilities, we need to understand some of the non-negotiable factors we will be facing, each of which has implications restrictive of viable solution space. Many of these issues are the fundamental substance of the message we have been propagating at the Automatic Earth since its inception and will therefore constitute a review for our regular readership. For more detail on these topics, check out our primers section.

Global Financial Crisis – Liquidity Crunch and Economic Depression

As we have maintained since the Automatic Earth’s launch in early 2008, we have lived through a gigantic monetary expansion over the last 30 years or so –  the largest financial departure from reality in human history. In doing so we have created a crisis of under-collateralization. This period was highly inflationary, as we saw a vast increase in the supply of money and credit versus available goods and services. Both currency printing and credit hyper-expansion constitute inflation, but the outcome, and therefore prescription, for each is very different. While currency printing cuts the real wealth pie into many more pieces, each of which will be very small, credit expansions such as this one create multiple and mutually exclusive claims to the same pieces of pie, hence we have generated a vast quantity of excess claims to underlying real wealth.

In other words, we have created a bubble of virtual wealth, with no substance to back up the pile of promises to repay that it rests upon. As we have said before, this amounts to playing a giant game of musical chairs where there is perhaps one chair for every hundred people playing the game. When the music stops, those best positioned to understand the rules of the game will grab a chair as quickly as possible. Everyone else will be out of the game. The endgame of credit expansion is always a credit implosion, where the excess claims are rapidly and messily extinguished. This is, of course, deflation by definition – a contraction in the supply of money and credit relative to available goods and services – through the collapse of the credit supply, where credit is of the order of 99% of the effective money supply.

A credit implosion crashes both the money supply and the velocity of money – the rate at which money circulates in the economy. Together these factors determine how much economic activity can be sustained. With both the money supply and the velocity of money very low, a state of liquidity crunch exists, where there is insufficient liquidity in the economy to connect buyers and sellers, or producers and consumers. Nothing moves, so there is little or no economic activity. Note that demand is not what one wants, but what one can pay for, so with little purchasing power available, demand will be very low under such circumstances.

During the expansion, both the money supply and the velocity of money increased dramatically, and the resulting artificial stimulation of demand led to an increase in supply, with the ability to sustain a much larger than normal amount of economic activity. But once the limit is reached, where all the income streams of the productive economy can no longer service the debt created, and there are no more willing borrowers or lenders, the demand stimulation disappears, leaving a great deal of supply without a market. The demand that had been effectively borrowed from the future, must be ‘repaid’ once the bubble bursts, leading to a prolonged period of low demand. The supply that had arisen to service it no longer has a reason to exist and cannot be maintained.

The economy moves into a period of seizure under such cIrcumstances. We have frequently compared attempting to run an economy with too small a money supply in circulation to trying to run an automobile with the oil warning light on, indicating too little lubricant. Engines seize up when run with too little lubricant, a role played by money in the case of the engine of the economy. The situation created can also be compared to a computer operating system crash, where nothing functions until the system has been rebooted. During the Great Depression of the 1930s, people noted that they had plenty of everything except money. Liquidity crunch creates a condition of artificial scarcity, where even being surrounded by resources is of little use for a period of time once the operating system has crashed and has yet to be ‘rebooted’.

We will be looking at a period of acute liquidity crunch followed by a long period of chronic financial instability. The initial contraction will be driven by fear and that fear will persist for a long time. This will result in little credit being made available, and only at high cost. In other words, interest rates, which are a risk premium, will be very high as we move beyond the initial phase of contraction and fear is in the drivers seat. Deflation and economic depression are mutually reinforcing, hence once that downward spiral, or vicious circle, dynamic has taken hold, we will remain in its grip for many years.

Given that the cost of capital will be very high, and there will be little purchasing power, proposed solutions which are capital-intensive will lie outside solution space.

Tune back in tomorrow for The Psychological Driver of Deflation and the Collapse of the Trust Horizon .