Nov 242018
 
 November 24, 2018  Posted by at 10:33 am Finance Tagged with: , , , , , , , , , , ,  


Joseph Mallord William Turner The Sun Rising over Water 1825-30

 

Britain’s Opposition Labour Party Plots Overthrow Of Capitalism (R.)
This Sell-Off is Just One Step in Methodical Unwind of Stock Prices (WS)
Oil Plunges More Than 6% Despite Potential OPEC Cut (R.)
Bitcoin Loses 25% Of Its Remaining Value During Thanksgiving Week (CNBC)
Trump Dismisses Report He Is Unhappy With Treasury’s Mnuchin (R.)
Holiday Doings and Undoings (Kunstler)
Rising Fuel Price Protests Should Serve As A Red Alert For Macron (I.ie)
Gibraltar Rocks Final Stages Of Brexit Negotiation (AFP)
Ecuador Ousts Its London Ambassador, ‘Last Diplomat Assange Knew’ (RT)
Prosecution of Julian Assange, America’s Betrayal of Its Own Ideals (CD)
Why You Should Care About the Julian Assange Case (Taibbi)
Anonymous Blows Lid Off Huge Psyop In Europe Funded By UK & US (RT)

 

 

You really think you can win an election saying this?

Britain’s Opposition Labour Party Plots Overthrow Of Capitalism (R.)

The British Labour Party’s would-be finance minister, John McDonnell, has a message for the world: he is deadly serious about overthrowing capitalism and building a socialist society. McDonnell, 67, who describes Karl Marx as one of his main influences, has been at the vanguard of a left-wing revival in Britain’s main opposition party under fellow socialist Jeremy Corbyn. He has promised sweeping nationalization, higher public spending and an overhaul of the banking system. Asked about his entry in the Who’s Who directory of influential people which lists his passion for “generally fermenting the overthrow of capitalism”, McDonnell said it was a joke about beer-making, but he agrees with the principle.

“I believe it. I am serious in my intent. I want to transform this economy,” McDonnell told Reuters in an interview. “That means evolving into a system which can achieve that equality, that democracy, that fairness, and tackles the major challenges that we are facing.” With PM Theresa May’s grip on power looking ever more vulnerable as she faces the most perilous crisis of her premiership struggling to win backing for her Brexit deal, Labour are increasingly confident that they will be the next guardians of the world’s fifth-largest economy. McDonnell’s gambit is that the social discontent in Britain which fueled the shock 2016 Brexit vote runs much deeper, and that voters who feel left behind by decades of unchecked capitalism and wounded by years of public spending cuts will rally to his call.

“(It was) like everyone’s grievance went into one vote,” McDonnell said. The polls show that is only part of the picture: voters are tired of economic austerity and unhappy with May’s Brexit negotiations, but Labour are only marginally ahead of the ruling Conservative Party. Some commentators have suggested they should be polling better against a government in disarray. Nevertheless, the combination of an unsated appetite for change and a Brexit-inspired political crisis which has trashed the centrist orthodoxy of British politics, has left Labour confident they will soon win power. McDonnell said his ambition is create the most radical government in modern British history even as the country is grappling with its exit from the EU, the most complex negotiations in Europe since the end of World War Two.

[..] McDonnell has outlined a program of nationalizing the railways, energy and water companies and the postal service, raising taxes on businesses and the wealthy. This would be combined with increased spending on education, skills training, and health care, and harnessing the financial sector to help fund a huge infrastructure investment. At his party’s annual conference two months ago, McDonnell did little to conceal the scale of his ambition. Businesses were stunned by his plan to force all large companies to hand over a tenth of their equity to their workforce.

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Possible.

This Sell-Off is Just One Step in Methodical Unwind of Stock Prices (WS)

It was an ugly Monday and Tuesday followed by a Wednesday that at first look like a real bounce but ended with the indices giving up their gains. This was followed, mercifully, by Thursday when markets were closed, which was followed unmercifully by Friday, during which the whole schmear came unglued again. The S&P 500 index dropped 0.7% on Friday to 2,632 and 3.8% for Thanksgiving week, though this week is usually – by calendar black-magic – a good week, according to the Wall Street Journal: During Thanksgiving weeks going back a decade, the S&P 500 rose on average 1.3%. This leaves the S&P 500 index 1.5% in the hole year-to-date. It’s now back where it had first been on November 30, 2017:

Clearly, when seen over the longer term, the sell-off for now still belongs to the small-fry among sell-offs, with S&P 500 down just 10.5% from its peak:

The Dow dropped 0.7% on Friday and 4.4% during Thanksgiving week, to 24,286. It’s 1.75% in the hole for the year. Technically speaking, it’s not even in a correction, being down only 9.9% from its peak. And the Nasdaq, dropped 0.5% on Friday and 4.3% during Thanksgiving week. According to the Wall Street Journal, during Thanksgiving week over the past 20 years, the Nasdaq rose on average 1.3%. So this is no good for calendar-black-magic aficionados. Where’s the free-wheeling holiday spirit? The Nasdaq is now down 14.7% from its peak at the end of August but remains up 0.5% year-to-date. The Russell 2000 small-caps index edged down today and is down 14.5% from its peak on August 31. It’s 3% in the hole year-to-date and right back where it had first been on September 27, 2017:

The seven FANGMAN stocks – Facebook, Amazon, Netflix, Google’s parent Alphabet, Microsoft, Apple, and NVIDIA – fell 1.3% on Friday in combined market cap. Over Thanksgiving week, they have now plunged 6.7%, or by $259 billion. Those are real dollars gone in four trading days with just seven stocks. Since their combined market-cap peak of $4.63 trillion at the end of August, nearly $1 trillion — $994 billion to be precise – has dissolved into ambient air, as their combined market cap has plunged 21.5% in ca. 12 weeks. But if you look at them as individual stocks, it’s even worse. The saving grace for the group as a whole was Microsoft, the second largest stock by market cap, which is threatening to become the largest stock shortly if Apple continues to fall at this pace. Three of the seven have already plunged by 38% to nearly 50%. Two more have plunged by 26% to 27%.

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What is it, 34% since the high this year?

Oil Plunges More Than 6% Despite Potential OPEC Cut (R.)

Oil prices slumped more than 6 percent on Friday, with Brent set for a 12-percent plunge this week, as fears that supply would overpower demand intensified, even as major producers considered cutting output. Oil supply, led by U.S. producers, is growing faster than demand and to prevent a build-up of unused fuel such as the one that emerged in 2015, OPEC is expected to start trimming output after a meeting on Dec. 6. But this has done little so far to prop up prices, which have dropped more than 20 percent so far in November, in a seven-week streak of losses. Deep trade disputes between the world’s two biggest economies and oil consumers, the United States and China, have weighed upon the market.

“The market is pricing in an economic slowdown – they are anticipating that the Chinese trade talks are not going to go well,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “The market doesn’t believe that OPEC is going to be able to act swiftly enough to offset the coming slowdown in demand.” [..] Market fears over weak demand intensified after China reported its lowest gasoline exports in more than a year amid a glut of the fuel in Asia and globally. Stockpiles of gasoline have surged across Asia, with inventories in Singapore, the regional refining hub, rising to a three-month high while Japanese stockpiles also climbed last week. Inventories in the United States are about 7 percent higher than a year ago.

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Starting to feel serious.

Bitcoin Loses 25% Of Its Remaining Value During Thanksgiving Week (CNBC)

Bitcoin continued its move lower Friday, struggling to find footing after a week of pain for the world’s largest cryptocurrency. The digital asset hit a low of $4,119 Friday, according to data from CoinDesk, bringing its seven-day losses to more than 25 percent. In dollar terms, bitcoin’s value dropped by about $1,400 over that time frame. Other cryptocurrencies didn’t hold up this week either. Not a single one in the top 28 by market capitalization was trading in the green Friday, according to CoinMarketCap.com. XRP, the second-largest by market capitalization, fell 6 percent Friday, bringing its one-week losses to 10 percent. Ether was down 7 percent in 24 hours and lost roughly 30 percent for the week.

The total market capitalization for cryptocurrencies fell to $138.6 billion Friday, according to CoinMarketCap data, its lowest level since September 2017. Since its peak, the market has lost about $700 billion in value, according to the data. The tumble for bitcoin started abruptly last week when it fell below $6,000 and hit a new low for the year. The plunge followed what had been a surprisingly calm few months for bitcoin and a break from the rest of its volatile trading year. Since then, prices have hit new 13-month lows and struggled to move out of the $4,300 range. The price dips are a stark contrast from last Thanksgiving when the cryptocurrency was entering a hot streak thanks to a wave of new retail investors. Since that holiday week last year, prices are down by more than 55 percent.

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“They never like to ask me for a quote b/c it would kill their story..”

Trump Dismisses Report He Is Unhappy With Treasury’s Mnuchin (R.)

U.S. President Donald Trump said on Twitter on Friday that he was quite happy with Treasury Secretary Steven Mnuchin’s performance, after The Wall Street Journal reported that the president was dissatisfied with Mnuchin. “I am extremely happy and proud of the job being done by @USTreasury Secretary @stevenmnuchin1,” Trump said in a tweet. The Journal reported that Trump blames Mnuchin for the appointment of Federal Reserve Chairman Jerome Powell, who has been steadily raising U.S. interest rates. Trump is concerned that higher rates could undercut economic gains ahead of his 2020 reelection bid, the newspaper reported.

Quoting unnamed sources, the Journal said Trump has also expressed displeasure with Mnuchin over stock market turbulence and the Treasury secretary’s skepticism about the White House trade actions against China. “The FAKE NEWS likes to write stories to the contrary, quoting phony sources or jealous people, but they aren’t true. They never like to ask me for a quote b/c it would kill their story,” Trump said on Twitter. Trump has repeatedly criticized the Fed’s rate increases under Powell. In October, he called the Fed “crazy,” “ridiculous” and “my biggest threat.”

A year ago when Trump picked Powell to head the Federal Reserve, Mnuchin, a former Goldman Sachs banker, was a strong advocate of his nomination. The Wall Street Journal, citing a person familiar with the matter, said Trump, in a conversation with someone who praised Mnuchin’s performance, mentioned stock market volatility and said: “If he’s so good, why is this happening?”

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“..Somehow I doubt that this Christmas will win the Bing Crosby star of approval.”

Holiday Doings and Undoings (Kunstler)

Somehow I doubt that this Christmas will win the Bing Crosby star of approval. Rather, we see the financial markets breaking under the strain of sustained institutionalized fraud, and the social fabric tearing from persistent systemic political dishonesty. It adds up to a nation that can’t navigate through reality, a nation too dependent on sure things, safe spaces, and happy outcomes. Every few decades a message comes from the Universe that faking it is not good enough. The main message from the financials is that the global debt barge has run aground, and with it, the global economy. That mighty engine has been chugging along on promises-to-pay and now the faith that sustained those promises is dissolving.

China, Euroland, and the USA can’t possibly meet their tangled obligations, and are running out of tricks for rigging, gaming, and jacking the bond markets, where all those promises are vested. It boils down to a whole lot of people not getting paid, one way or the other — and it’s really bad for business. Our President has taken full credit for the bubblicious markets, of course, and will be Hooverized as they gurgle around the drain. Given his chimerical personality, he may try to put on an FDR mask — perhaps even sit in a wheelchair — and try a few grand-scale policy tricks to escape the vortex. But the net effect will surely be to make matters worse — for instance, if he can hector the Federal Reserve to buy every bond that isn’t nailed to some deadly derivative booby-trap.

But then he’ll only succeed in crashing the dollar. Remember, there are two main ways you can go broke: You can run out of money; or you can have plenty of worthless money.

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Urban vs rural. Just like in America.

Rising Fuel Price Protests Should Serve As A Red Alert For Macron (I.ie)

Within the space of a week, the gilets jaunes have managed to tap into wider discontent with Macron’s presidency and policies, gaining opposition support and momentum as a result. These are not the usual protests or strikes co-ordinated by political parties or unions in France. With no official organisation, no identified leader and no political affiliation, the gilets jaunes phenomenon has been almost completely co-ordinated on social media where it declares “[This] comes about only from the French people”. [..] one thing is certain: their actions have chimed with the public. This despite chaos across France last weekend with roads blocked by protesters at some 2,000 locations. Two people were killed – one when a driver panicked and accidentally accelerated their car into the crowd – in the protests and hundreds reported injured.

Nevertheless, a number of polls have shown that almost three-quarters of French voters approve of the demonstrations, one survey found that more than half of those who voted for Macron support them. The planned tax increases – the price of diesel is due to go up another 6.5 cents per litre and petrol by 2.9 cents – are to come into force in January. They follow a 23pc rise in the cost of diesel and 15pc in petrol in the past year. Internationally, Macron has made much of his commitment to battling climate change and these hikes are part of his domestic policies on that front. His ministers have also argued that the higher price of crude globally also necessitates a rise but protesters complain that fuel taxes have been increasing steadily over the past four years.

One survey this week found that 82pc believe Macron should drop the plans. It also showed that particular demographics – the self-employed and business leaders, plus pensioners and low-income households – were most supportive of the gilets jaunes. The episode also highlights the rift between France’s urban elite and those in its poor rural peripheries. Workers who rely on their cars to get to their jobs in the countryside are particularly aggrieved by the planned tax increases.

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One more topic they try to push into the limitless future.

Gibraltar Rocks Final Stages Of Brexit Negotiation (AFP)

Preparations for a summit to endorse Britain’s deal to quit the European Union risked running aground on the rock of Gibraltar Friday, as Spain defended its veto over the fate of the tiny territory. Britain’s Prime Minister Theresa May and leaders of the other 27 EU member states are to meet Sunday to approve their divorce agreement and set a course for negotiating their future post-Brexit relationship. But Spanish officials emerged from talks Friday warning that Prime Minister Pedro Sanchez might not attend unless it is guaranteed that no future accord on EU relations involving Gibraltar will be signed without Madrid’s specific assent.

Visiting Cuba, Sanchez said that if the Gibraltar row is not resolved, he might not go to Brussels on Sunday, warning: “If there’s no agreement, it’s very clear hat will happen, there very probably won’t be a European Council.” In Brussels, Luis Marco Aguiriano Nalda, Spain’s secretary of state for European affairs, said Madrid wanted London to put in writing that it shared Madrid’s interpretation of the negotiated Brexit deal regarding Gibraltar. “We have demanded that it be published by the British authorities before the European Council on Sunday,” he said. In London, however, a Downing Street source said he did not know what document Aguiriano could be referring to and added: “We have negotiated on behalf of the whole of the UK family. That includes Gibraltar and the overseas territories.”

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The torture never stops.

Ecuador Ousts Its London Ambassador, ‘Last Diplomat Assange Knew’ (RT)

Ecuador’s President Lenin Moreno has terminated the credentials of his UK ambassador, who has been at the center of negotiating the fate of WikiLeaks co-founder Julian Assange, as concerns mount over the whistleblower’s safety. The decree, with which Moreno effectively sacked Ecuador’s London ambassador Abad Ortiz, was published by WikiLeaks on Wednesday. The document does not offer any explanation as to why Ortiz, who had been his country’s ambassador to the UK since 2015, is now being permanently recalled. Nor does it name a successor for the outgoing diplomat. The decree is effective immediately.

WikiLeaks tweeted that Abad, appointed to the office under President Rafael Correa, was the last diplomat the long-term self-exiled editor knew in the embassy. “All diplomats known to Assange have now been transferred away from the embassy,” the whistleblowing site claimed. This new and sudden twist in the Assange saga has been met with concern by his supporters, with some suggesting that Moreno is doing Washington’s bidding by removing people who might have stood by Assange and opposed his potential handover to the British police – which is expected to bring about a swift extradition to the US. The dismissal has been called “a silent pro-US coup.”

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Best piece on Assange in a while, from Nozomi Hayase.

Prosecution of Julian Assange, America’s Betrayal of Its Own Ideals (CD)

Just as the Founding Fathers of the United States, by revolting against the autocratic rule of King George were regarded as traitors, by aiding ordinary people expose and defy unjust secret law, WikiLeaks too has been branded as an enemy of the state. Trump’s Secretary of State and the former CIA director, Mike Pompeo calls WikiLeaks a non-state hostile intelligence agency, claiming that the organization threatens American values and needs to be shut down. Members of the US Congress urged the Ecuadorian President to persecute Assange, calling him a “dangerous criminal” and a “threat to global security”. While all these vicious verbal attacks are thrown at him, Assange remains in confinement, over the past months, being completely shut out from the outside, being continually deprived of fresh air, access to medical care and sunlight by the UK government in violation of UN rulings.

All wars start and are fueled by lies and propaganda. Once it was the Vietnam War, where under the command of the US President Lyndon B. Johnson, the Gulf of Tonkin lies unleashed military forces into Southeast Asia. Then came the invasion of Iraq with the former Secretary of State Colin Powell’s speech at the UN, falsely claiming Iraq had ‘Weapons of Mass Destruction’. This battle against free speech is another secret war of this empire. It now has become a fog of war, where with the hype of Russia Gate that was created out of thin air, the public was prevented from seeing who the real enemies are.

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Taibbi’s piece is okay, and he says some good things, but he doesn’t appear to like Assange, and fails to hide that.

Valid point he makes: The -secret- charges vs Assange have nothing to do with Trump, they pre-date his presidency by years.

Why You Should Care About the Julian Assange Case (Taibbi)

It always seemed that Assange viewed his primary role as being a pain in the ass to this increasingly illegitimate system of secrets, a pure iconoclast who took satisfaction in sticking it to the very powerful. I didn’t always agree with its decisions, but Wikileaks was an understandable human response to an increasingly arbitrary, intractable, bureaucratic political system. That it even had to exist spoke to a fundamental flaw in modern Western democracies — i.e. that our world is now so complex and choked with secrets that even releasing hundreds of thousands of documents at a time, we can never be truly informed about the nature of our own societies. Moreover, as the Snowden episode showed, it isn’t clear that knowing unpleasant secrets is the same as being able to change them.

In any case, the institutions Wikileaks perhaps naively took on once upon a time are getting ready to hit back. Frankly it’s surprising it’s taken this long. I’m surprised Assange is still alive, to be honest. If Assange ends up on trial, he’ll be villainized by most of the press, which stopped seeing the “lulz” in his behavior for good once Donald Trump was elected. The perception that Assange worked with Vladimir Putin to achieve his ends has further hardened responses among his former media allies. As to the latter, Assange denies cooperating with the Russians, insisting his source for the DNC leak was not a “state actor.” It doesn’t matter. That PR battle has already been decided.

Courts have held reporters cannot be held liable for illegal behavior of sources. [..] It’s always been the source’s responsibility to deal with that civil or criminal risk. The press traditionally had to decide whether or not leaked material was newsworthy, and make sure it was true. The government has been searching for a way to change that equation. The Holy Grail would be a precedent that forces reporters to share risk of jail with sources. Separate from Assange, prosecutions of leakers have sharply escalated in the last decade. The government has steadily tiptoed toward describing publishers as criminal conspirators.

It’s impossible to know exactly what recent news about an indictment means until we see it (the Reporters’ Committee for the Freedom of the Press has already filed a motion to unseal the charges). If there is a case, it could be anything in the federal criminal code, perhaps even unrelated to leaks. Who knows? But the more likely eventuality is a prosecution that uses the unpopularity of Assange to shut one of the last loopholes in our expanding secrecy bureaucracy. Americans seem not to grasp what might be at stake. Wikileaks briefly opened a window into the uglier side of our society, and if publication of such leaks is criminalized, it probably won’t open again.

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Europe needs an enemy. Or rather, NATO does.

Anonymous Blows Lid Off Huge Psyop In Europe Funded By UK & US (RT)

Anonymous has published documents which it claims have unearthed a massive UK-led psyop to create a “large-scale information secret service” in Europe – all under the guise of countering “Russian propaganda.” In a document dump on November 5, the group exposed the UK-based ‘Integrity Initiative’, said to have been established by the ominously titled Institute for Statecraft in 2015. The main objective is “to provide a coordinated Western response to Russian disinformation and other elements of hybrid warfare.” The Institute for Statecraft is affiliated with the NATO HQ Public Diplomacy Division and the Home Office-funded ‘Prevent’ program, so objectivity is, of course, at the forefront of their work.

Operating on a budget of £1.9 million (US$2.4 million), the secretive Integrity Initiative consists of “clusters” of local politicians, journalists, military personnel, scientists and academics. The team is dedicated to searching for and publishing “evidence” of Russian interference in European affairs, while themselves influencing leadership behind the scenes, the documents claim. The UK establishment appears to be conducting the very activities of which it and its allies have long-accused the Kremlin, with little or no corroborating evidence. The program also aims to “change attitudes in Russia itself” as well as influencing Russian speakers in the EU and North America, one of the leaked documents states.

At present, the vast network allegedly has clusters for Spain, France, Germany, Italy, Greece, the Netherlands, Lithuania, Norway, Serbia, and Montenegro… but there’s more! According to the Anonymous leak, major plans to expand the sphere of influence throughout eastern Europe, the US, and Canada, as well as the MENA region, are allegedly underway. The clusters’ work is apparently done under absolute secrecy via concealed contacts embedded throughout British embassies, the leak claims, some of which are listed as part of the documentation.

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Dec 202017
 
 December 20, 2017  Posted by at 9:38 am Finance Tagged with: , , , , , , , , , ,  


Claude Monet Houses of Parliament, Sunset 1904

 

Bitcoin Plunges Over $2,500, Bounces Back Somewhat, Bitcoin Cash Surges (MW)
Coinbase Enables -Then Disables- Bitcoin Cash Trading: Insider Trading? (BI)
From Bitcoin To Hashgraph: The Crypto Revolution (Mike Maloney)
Is It 1999? 2007? Or Both? (Roberts)
China Is Having Second Thoughts About Cracking Down On Ballooning Debt (CNBC)
EU Commission May Launch Moves To Punish Poland Over Legal Reforms (R.)
Facebook’s New Nemesis Is a Besuited German Antitrust Watchdog (BBG)
Un-Merry Christmas: Perverse Incentives to Over-Consume and Over-Spend (CHS)
Too Late, Theresa – Brexit Offer To EU Citizens Leaves Many Cold (R.)
Centuries-Old Gibraltar Dispute Threatens Brexit Progress (BBG)
UK Government Condemned Over ‘Abject Failure’ To Tackle Homelessness (Ind.)
Salaries Continue To Decline In Greece
Footage Emerges From Lesbos Refugee Camp Showing Shocking Conditions (K.)
10 People Injured In Clashes At Moria Refugee Camp On Lesbos (K.)
Our Selective Blindness Is Lethal To The Living World (G.)

 

 

Pretty wild. You sure you want your savings go through that?

Bitcoin Plunges Over $2,500, Bounces Back Somewhat, Bitcoin Cash Surges (MW)

The price of bitcoin plunged about 14% — more than $2,500 — Tuesday night after cryptocurrency trading site Coinbase said it would allow its customers to buy and sell its rival offshoot currency, bitcoin cash. In a matter of hours, the price of bitcoin dropped from $18,125 to as low as $15,578. Bitcoin later rallied somewhat and was trading within a $1,000-range; it was last at $16,875 Tuesday night. Bitcoin futures on the CME Group’s Chicago Mercantile Exchange were last trading at $17,425, off more than $700 from the afternoon. Bitcoin cash, meanwhile, rallied more than 50% to all-time highs above $3,300. It was last trading at $3,303, according to CoinMarketCap. “Sends and receives are available immediately,” Coinbase said in a blog post Tuesday announcing bitcoin-cash trading.

“Buys and sells will be available to all customers once there is sufficient liquidity on GDAX. We anticipate that this will take a few hours.” However, Coinbase and its GDAX exchange late Tuesday suspended bitcoin-cash trading after just four minutes until 9 a.m. Pacific time Wednesday, apparently until traffic settles down and liquidity is established. Bitcoin cash was created by a split from bitcoin on Aug. 1 by a faction of disgruntled developers, and allows virtual miners to process transactions in larger units — 8 megabytes rather than the 1-MB bitcoin blocks. The fledgling cryptocurrency has expanded 10-fold since then, and is now the third-largest by market cap, at $55.6 billion, according to CoinMarketCap.com.

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Volatility, liquidity, insider trading.

Coinbase Enables -Then Disables- Bitcoin Cash Trading: Insider Trading? (BI)

Coinbase, one of the largest cryptocurrency trading platforms, shocked the crypto-world with its announcement Tuesday evening that it would allow users to buy and sell bitcoin cash. The news sent bitcoin cash, the spin-off cryptocurrency of bitcoin launched in August, to an all-time high above $3,609 per data from Markets Insider. On Coinbase’s GDAX platform, the price of the cryptocurrency reached well above $8,000 per coin. Bitcoin cash’s appreciation began slightly before the announcement on some exchanges, raising concerns about the possibility of insider trading by employees with advanced knowledge of the news. Coinbase CEO Brian Armstrong said in a post early Wednesday morning that the company was looking into the matter.

“Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter”, he said. If we find evidence of any employee or contractor violating our policies- directly or indirectly- I will not hesitate to terminate the employee immediately and take appropriate legal action. The price spike appeared to put pressure on Coinbase. Nearly four hours after the San Francisco-based firm announced it was supporting bitcoin cash trading, it said users wouldn’t be able to buy and sell the cryptocurrency until Wednesday. “An update on Bitcoin Cash for our customers: sends and receives are functional,” the company said in a tweet at 11:15 p.m. ET. “Buys and sells on Coinbase.com and in our mobile apps will be available to all customers once there is sufficient liquidity on GDAX. We anticipate that this will happen tomorrow.”

Ouch. The company said in a blog post it disabled trading because of “significant volatility.” In addition to bitcoin cash spiking by almost $1,000, cryptocurrency trading volumes reached an all-time high above $49 billion, according to data from CoinMarketCap. Coinbase has struggled to fully function under such demand in the past.


Bitcoin this week

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Our friend and gold bug Mike has lofty words.

From Bitcoin To Hashgraph: The Crypto Revolution (Mike Maloney)

Today, mankind stands at a crossroads, and the path that humanity chooses may have a greater impact on our freedom and prosperity than any event in history. In 2008 a new technology was introduced that is so important that its destiny, and the destiny of mankind are inextricably linked. It is so powerful that if captured and controlled, it could enslave all of humanity. But if allowed to remain free and flourish – it could foster unimaginable levels of peace and prosperity. It has the power to replace all financial systems globally, to supplant 90% of Wall St, and to provide some functions of government. It has no agenda. It’s always fair and impartial. It can not be manipulated, subverted, corrupted or cheated.

And – it inverts the power structure and places control of one’s destiny in the hands of the individual. In the future, when we look back at the 2.6 million-year timeline of human development and the major turning points that led to modern civilization – the creation of farming, the domestication of animals, the invention of the wheel, the harnessing of electricity and the splitting of the atom – the sixty year development of computers, the internet and this new technology will be looked upon as a single event…a turning point that will change the course of human history. It’s called Full Consensus Distibuted Ledger Technology, and so far its major use has been for cryptocurrencies such as Bitcoin….but its potential goes far, far beyond that.

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Of course, as always, Lance has a lot more to say (click the link). I picked out his graph beacuse it is exceptionally strong.

Is It 1999? 2007? Or Both? (Roberts)

I have combined the three periods below, scaled to 100, so you can see just how far we have currently gone. Sure. This time could be different. It just probably isn’t.

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Beijing has been aware of this for a long time. Don’t watch what they say, watch what they do.

China Is Having Second Thoughts About Cracking Down On Ballooning Debt (CNBC)

China is planning to relax its goal of cutting debt in its economic outline that’s set for release Wednesday, The Wall Street Journal reported Tuesday. The revised plan will instead clamp down on the rise in borrowing, sources told the WSJ. The move would fly in the face of the Chinese government’s mission to bring down the country’s soaring debt, a goal President Xi Jinping has made a cornerstone to his economic platform. The weakened priority may prove to be a concession by top Communist Party leaders that China’s economy may be more reliant on leveraged growth than the government would like. The Journal added that, by cooling its stance on debt, Beijing is hinting that it would rather fuel growth with higher debt than pursue austerity measures.

Chinese debt levels jumped the most in four years in September, according to Reuters. There’s speculation that the size of China’s debt load may be three times its economy. China may be feeling pressure to keep its economy growing as the U.S. is set to pass its biggest tax overhaul in 30 years this week, which will lower the corporate tax rate to theoretically make more companies competitive with China. To be sure, Xi and the Communist Party have been hard at work to curb borrowing between banks, the Journal noted. But since the crackdown on intrabank lending, smaller banks have scaled risky borrowing.

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Don’t think Poland will react very well to being ‘punished’.

EU Commission May Launch Moves To Punish Poland Over Legal Reforms (R.)

In what would be an unprecedented move, the European Commission could invoke Article 7 of the European Union’s founding Lisbon Treaty to punish Warsaw for breaking its rules on human rights and democratic values. “Unless the Polish government postpones these court reforms, we will have no choice but to trigger Article 7,” said a senior EU official before a Commission meeting on Wednesday, where Poland’s reforms are on the agenda. Poland’s new prime minister Mateusz Morawiecki said in Brussels last week that “the decision has already been made”. The Commission’s deputy head Frans Timmermans warned in July that Poland was “perilously close” to facing sanctions. Such a punishment could still be blocked. Hungary, Poland’s closest ally in the EU, is likely to argue strongly against it.

But the mere threat of it underlines the sharp deterioration in ties between Warsaw and Brussels since the socially conservative Law and Justice (PiS) won power in late 2015. The Commission says Poland’s judicial reforms limit judges’ independence. Polish President Andrzej Duda has until Jan. 5 to sign them into law. If all EU governments agree, Poland could have its voting rights in the EU suspended, and may also see cuts in billions of euros of EU aid. The PiS government rejects accusations of undemocratic behavior and says its reforms are needed because courts are slow, inefficient and steeped in a communist era-mentality.

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Cartel Office, no less.

Facebook’s New Nemesis Is a Besuited German Antitrust Watchdog (BBG)

Andreas Mundt is Facebook’s new nemesis. Mundt, 57, is the president of the Federal Cartel Office, Germany’s competition regulator. For nearly two years, his agency has been probing whether a key part of the Silicon Valley giant’s business model is an abuse of a market dominance. In a case that caused much surprise outside Germany, Mundt unveiled preliminary findings on Tuesday, saying Facebook may take advantage of its popularity to bully users into agreeing to terms and conditions they often don’t understand. The small print allows using the data to generate the targeted ads that make the company so rich. “Competition law would be poorer without somebody like Andreas Mundt,” said Nelson Jung, a lawyer at Clifford Chance in London. “He’s characterized by his willingness to push boundaries and challenge the status quo.”

Facebook took a dim view, saying the report painted an “inaccurate picture” of how it operates, homing in on the criticism that it’s dominant, an important legal term that might curb future behavior. [..] Facebook didn’t hold back in its attempt to rebut Mundt’s report, saying that it’s wrong to label it as “dominant” in Germany. “A dominant company can save the expense of innovating because it doesn’t have to fear someone else developing better features. We must constantly innovate to attract people. If we fail, people will go elsewhere.” According to Mundt, when data is called the new currency of the digital age, then the relationship to competition law is obvious. That’s also why he’s rejecting criticism that the probe blurs the line between privacy and antitrust enforcement.

“It can only be an antitrust issue if a customer can’t avoid the company because it’s dominating the market. Of course that has a privacy angle but it certainly also has an antitrust angle.” Mundt calls the Facebook investigation a “pioneer case” since “for the first time we’re looking into the relation between market power and big data.” For him, it’s as important as the European Union’s clampdown on Alphabet’s Google, which in July was fined 2.4 billion-euros for skewing shopping search results. “I like the Google decision, it set out some markers for the future,” Mundt said. “That’s what we’re trying with the Facebook case as well, regardless of what the result will now be.”

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Well, Toys ‘R’ Us is already dying. Our economies run on overspending.

Un-Merry Christmas: Perverse Incentives to Over-Consume and Over-Spend (CHS)

Few topics are off-limits nowadays: the personal and private are now splashed everywhere for all to see. One topic is still taboo: the holiday’s perverse incentives to over-consume and over-spend,lest our economy implode. This topic is taboo because it strikes at the very heart of our socio-economic system, which is fundamentally based on permanent growth, the faster the better, as if unlimited expansion on a finite planet is not just possible, but desirable. In the current Mode of Production, the solution to every social and economic ill is to “grow our way out of it.” The solution to unemployment: jump-start growth by expanding consumption, spending and borrowing. The solution to stagnant wages: jump-start growth. The solution to declining profits: jump-start growth. The solution to government deficit spending: jump-start growth. And so on.

So what happens when most people have not just the basics of life, but a surplus of stuff? Where is the growth going to come from if people already have everything? The answer is three-fold: 1. Replace a perfectly good product with a new product and dump the old one in the landfill. 2. Buy duplicates and put the surplus products in the closet or storage facility. 3. Buy gimmicks (Pet Rocks, etc.) that are tossed in the dump shortly after the holiday gift-giving season ends. But does this Landfill Economy make sense? The cheap oil is about gone, and so does it make any rational sense to burn the last of the cheap fossil fuels on assembling stuff nobody needs in China, shipping it thousands of miles to retailers or Amazon warehouses, adding it to the immense piles of stuff most households already own, and then shipping the old but still functional products to the landfill, just to keep the economy humming?

This is of course insane. Decisions aren’t being made as if scarcity matters; the goals and incentives are set to encourage perverse and destructive overconsumption and overspending: not only are we squandering resources in the sacrifice to the false gods of “growth,” we’re indebting households to do so, stripping income that could have been saved and invested in productive uses. In the lunatic asylum of the current economic model, media anchors sport grins of delirious joy when reporting increases in holiday spending, as if a bump higher from $680 billion to $700 billion is a gargantuan win for the flailing economy.

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There are no Britons ready to fill the roles at either the high end -academics- or the low end -fruit pickers-.

Too Late, Theresa – Brexit Offer To EU Citizens Leaves Many Cold (R.)

Back from Brussels with a hard-fought Brexit deal, Prime Minister Theresa May wrote an open letter to the three million citizens of other European Union states living in Britain. “I know our country would be poorer if you left and I want you to stay,” she wrote after striking the initial agreement, which promises to secure their British residency rights after Brexit and allows the negotiations to move onto trade relations. But for some EU nationals – who have endured uncertainty over their rights since the Brexit vote in June 2016, not to mention an unpleasant feeling that many Britons do not want them around – May’s Dec. 8 deal is too little, too late. It’s too late to keep German nurse Daniela Jones in the chronically short-staffed National Health Service (NHS), where she worked for 35 years.

It’s too late for French psychotherapist Baya Salmon-Hawk, who after 40 years in Britain has moved to Ireland to remain in the EU. It’s too late for French accountant Nathalie Duran, who is planning early retirement in France because after 31 years as a taxpayer in Britain she objects to being told she has to pay a fee and fill in forms to be granted a new “settled status”. “I will have to regretfully decline your generous offer for settled status and oblige your lovely countrymen’s wishes and go home,” she wrote on Facebook in a response to May laden with irony. Duran told Reuters that the prime minister’s “late outpouring of love” for EU citizens, after years of tough talk on the need to cut immigration, could not mask negative attitudes towards immigrants unleashed by the Brexit vote. “I think it’s turning ugly,” said 56-year-old Duran. “It’s now OK to say ‘go home foreigners’.”

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It’s whack-a-mole thing. New issues keep popping up.

Centuries-Old Gibraltar Dispute Threatens Brexit Progress (BBG)

A 300-year-old argument between Britain and Spain over a small piece of land is threatening to derail Theresa May’s plans to help businesses navigate Brexit. U.K. officials fear Spain will threaten to veto a Brexit transition phase if the British prime minister refuses to negotiate a separate deal with the government in Madrid that covers the disputed territory of Gibraltar. While the peninsula has been in British hands since 1713, Spain maintains a claim over the 2.6 square miles (6.7 square kilometers) of land. Fears are growing among ministers in London that a new framework for the next phase of Brexit talks, due to be outlined by the European Union on Wednesday, might reignite the centuries-old arguments, a U.K. official said.

May faces pressure to quickly strike a deal on transitional terms to assure U.K.-based businesses that trade rules won’t change suddenly on Brexit day in March 2019. May wants an agreement on the transition – or “implementation” – phase by March 2018 in order to shift talks on to the long-term future trade agreement. She hopes the two-year period of stability immediately after Brexit will help encourage businesses to stay based in the U.K. Last week, Spanish Prime Minister Mariano Rajoy suggested his government would need to give its explicit consent to any transitional deal affecting Gibraltar. The measure would require separate negotiations between London and Madrid, he said. [..] One U.K. official who asked not to be identified said British overseas territories must be included within the EU’s guidelines for negotiating an overall transitional period. To do anything else would be a contradiction in the EU’s own position, the official said.

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So does Labour stand up for them? really? How do they do that?

UK Government Condemned Over ‘Abject Failure’ To Tackle Homelessness (Ind.)

The Government has been condemned for taking an “unacceptably complacent” attitude towards tackling homelessness, as soaring numbers of people are forced to live on the streets or in temporary accommodation. A damning report by the cross-party Public Accounts Committee (PAC) said ministerial attempts to solve the “national crisis” had ended in “abject failure”. Figures show more than 9,000 people are sleeping rough on the streets of England at any one time – up 134% since 2011. Over 79,000 households, including 120,000 children, are meanwhile homeless and living in temporary accommodation – a rise of 65% since 2010.

Recent research by charity Shelter revealed that child homelessness has reached a 10-year high, with nearly 130,000 children in Britain set to wake up homeless and in temporary accommodation this Christmas. But the Government’s commitment to eliminate rough sleeping by 2027 will only address the “tip of the iceberg”, according to the PAC report, which found there to be an “unacceptable shortage” of realistic housing options for the homeless or those at risk of homelessness.

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Which cuts consumer spending, which cuts jobs, which cuts consumer spending, rinse and repeat.

Salaries Continue To Decline In Greece

Salaries have declined considerably and the number of workers on low wages has expanded, explaining the increase in jobs recorded by the Labor Ministry’s hirings database Ergani this year. A direct comparison of the first three weeks of October 2017 with the same period last year changes the rosy image of the local labor market that the government is attempting to present. The figures for this year show that more than six in 10 (64.27%) of the total 1,824,437 workers employed at 247,236 enterprises were on salaries of up to 1,000 euros per month gross. Fewer than two-thirds of them, accounting for 759,326 in absolute figures or 41.62% of all workers, were employed full-time, while the rest (22.65%) appeared to have part-time jobs that earned less than 500 euros a month.

Data also show the number of self-employed increased by 121,913 from October 2016, but this was not accompanied by an increase in salaries. The average salary in October 2017 dropped to 1,024.90 euros from 1,060.30 a year earlier. Across the labor market, full-time workers accounted for 68.44% of the total, virtually unchanged from the 68.28% rate in October 2016. However, the number of enterprises rose by 14,085, or 6.04%, from 233,151 in October last year. Over the 12-month period, flexible employment (part-time and shift work) grew by 30,556 jobs or 7.98%.

A growing trend has been recorded toward jobs paying between 500 and 600 euros per month: One in nine workers (11% or 200,759) fall into this revenue category, up by a remarkable 13.9% from October 2016 – a rise that is far greater than the overall increase in jobs. Eurostat data showed on Tuesday that while the hourly cost of labor in Greece rose 0.8% in the third quarter of 2017, salary costs fell 1.8% and non-salary costs (social security contributions etc) increased 8.6%.

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It’ll be a bitter winter.

Footage Emerges From Lesbos Refugee Camp Showing Shocking Conditions (K.)

US-based internet media company BuzzFeed has published a series of photographs and videos shot by residents inside the government-run Moria refugee and migrant processing center on the eastern Aegean island of Lesvos. The scenes of misery and squalor are also evident in a report on Deutsche Welle on Monday, which was International Migrants Day, showing footage taken by hidden camera inside the same facility. BuzzFeed’s Ryan Broderick said in his report that a 25-year-old man from Iraq named Noor and a 27-year-old man from Syria named Ammar agreed to provide the reporter with videos from inside the fenced-in perimeter of the former army camp, which is run by the Greek military.

The footage, which Broderick also posed on his Twitter account, provides a rare glimpse at conditions inside the camp, which was originally built to accommodate some 2,000 migrants and refugees and is now home to around 6,000 people, including unaccompanied minors, children, pregnant women and disabled or elderly individuals. Images of a shower area show a row of filthy stalls with doors hanging off their hinges, allowing little if any privacy. Many residents collect water in plastic bottles to bathe themselves rather than entering the showers, the witnesses inside the facility are quoted as saying after sending photographs of huge piles of plastic water bottled. The toilets are so unsanitary, they add, that many residents prefer to go to the bathroom in the open air, in a part of an olive tree grove set aside for this purpose.

Streets in the camp flood in the rain and are lined with tents that may accommodate more than one family and have been strengthened to withstand winter conditions with plastic sheets. In another video, two police officers are seen forcibly carrying a man by his arms and leg and shouting abuse at him after breaking up a fight between residents. Several international rights groups have decried conditions at Moria for months, calling on the Greek government to ease overcrowding and improve accommodation and sanitation standards. Squalid and cramped conditions have also led to riots and fights breaking out inside the facility.

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“300 to 350 unaccompanied minors and hundreds of children, women and elderly and disabled people.”

10 People Injured In Clashes At Moria Refugee Camp On Lesbos (K.)

Around 10 people were rushed to hospital on Lesvos on Tuesday night following violent clashes between rival groups in the Moria refugee and migrant camp. Riot police were called in to quell the unrest, which reportedly broke out between rival groups of Iraqi and Afghan nationals and resulted in several small fires being set. Tension is rife at Moria, where scant resources are being stretched at almost three times the camp’s capacity and conditions are squalid.

Among its 6,000-plus residents there are around 300 to 350 unaccompanied minors and hundreds of children, women and elderly and disabled people. Tuesday night’s clashes came a day after American news outlet BuzzFeed and Germany’s Deutsche Welle published videos of the camp’s interior showing the extent of the filth and squalor to which residents are being subjected. Journalists are not allowed into the military-run camp without the prior agreement of authorities, so the exact extent of Tuesday’s and other similar clashes are not known.

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Blind to the species that were already gone when you were born.

Our Selective Blindness Is Lethal To The Living World (G.)

What you see is not what others see. We inhabit parallel worlds of perception, bounded by our interests and experience. What is obvious to some is invisible to others. I might find myself standing, transfixed, by the roadside, watching a sparrowhawk hunting among the bushes, astonished that other people could ignore it. But they might just as well be wondering how I could have failed to notice the new V6 Pentastar Sahara that just drove past. As the psychologist Richard Wiseman points out: “At any one moment, your eyes and brain only have the processing power to look at a very small part of your surroundings … your brain quickly identifies what it considers to be the most significant aspects of your surroundings, and focuses almost all of its attention on these elements.” Everything else remains unseen.

Our selective blindness is lethal to the living world. Joni Mitchell’s claim that “you don’t know what you’ve got till it’s gone” is, sadly, untrue: our collective memory is wiped clean by ecological loss. One of the most important concepts defining our relationship to the natural world is shifting baseline syndrome, coined by the fisheries biologist Daniel Pauly. The people of each generation perceive the state of the ecosystems they encountered in their childhood as normal and natural. When wildlife is depleted, we might notice the loss, but we are unaware that the baseline by which we judge the decline is in fact a state of extreme depletion. So we forget that the default state of almost all ecosystems – on land and at sea – is domination by a megafauna.

We are unaware that there is something deeply weird about British waters; they are not thronged with great whales, vast shoals of bluefin tuna, two-metre cod and halibut the size of doors, as they were until a few centuries ago. We are unaware that the absence of elephants, rhinos, lions, scimitar cats, hyenas and hippos, that lived in this country during the last interglacial period (when the climate was almost identical to today’s), is also an artefact of human activity. And the erosion continues. Few people younger than me know that it was once normal to see fields white with mushrooms, or rivers black with eels at the autumn equinox, or that every patch of nettles was once reamed by caterpillars. I can picture a moment at which the birds stop singing, and people wake up and make breakfast and go to work without noticing that anything has changed.

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Apr 022017
 
 April 2, 2017  Posted by at 9:30 am Finance Tagged with: , , , , , , , , ,  


DPC Gillender Building, corner of Nassau and Wall Streets, built 1897, wrecked 1910 1900

 

Why Trump Won’t Cut Taxes (Stockman)
Collapse In Demand (Fear)
Iceland’s Jailed Bankers Say They Were Scapegoats For Financial Crisis (AFP)
Blaming Russia for Everything (Robert Parry)
EU Offers Spain Veto Right Over Gibraltar After Brexit Talks (R.)
The European Union Lays Out A Greek Trap For The United Kingdom (Coppola)
Theresa May May Have Miscalculated (Varoufakis)
The Demise of the Anatolian Tiger – Turkey on Verge of Bankruptcy (Spiegel)
The Pentagon Doesn’t Want Turkey’s Help In Syria (WE)
Salmon Farming In Crisis: ‘A Chemical Arms Race In The Seas’ (G.)
Italy Praised For Giving Lone Child Refugees Legal Protection (Week)
Europe Keeps Its Rescue Ships Far From Where Refugees Drown (I’Cept)

 

 

Stockman won’t let go.

Why Trump Won’t Cut Taxes (Stockman)

[..] even the money printers have made it clear in no uncertain terms that they are done for this cycle, anyway, and that they will be belatedly but consistently raising interest rates for what ought to be a truly scary reason. That is, the denizens of the Eccles Building have finally realized that they have not outlawed the business cycle after all and need to raise rates toward 2-3% so that they have headroom to “cut” the next time the economy slides into the ditch. In effect, the Fed is saying to Wall Street: “Price in” a recession because we are! After all, our monetary central planners are not reluctantly allowing interest rates to lift off the zero bound because they have become converts to the cause of honest price discovery – nor are they fixing to liberate money rates, debt yields, and the prices of stocks and other financial assets to clear on the free market.

Instead, they are merely storing up monetary ammo for the next downturn. But the Wall Street mules keep buying the dips anyway because they are under the preposterous delusion that one source of “stimulus” is just as good as the next. And since the gamblers have now decreed that the “stimulus” baton be handed off to fiscal policy, it only remains for Congress and the White House to shape up and get the job done with all deliberate speed. But they won’t. Not in a million years. The massive Trump tax cut and infrastructure stimulus is DOA because Uncle Sam is broke and the U.S. economy has slithered into moribund old age.

In that context, it’s not remotely the same as the 12 members of the FOMC sitting behind closed doors for two days jawing about the short-term economic weather; and then at the conclusion of their gabfest, ordering the New York Fed’s open market desk to flood the canyons of Wall Street with cash by buying another $80 billion of bonds with digital credits conjured from thin air. Au contraire. Fiscal policy is inherently an exercise in herding cats and an especially impossible one when the cupboards are bare. [..] what lies directly ahead, therefore, is another bumbling attempt by the White House and Congressional Republicans to hammer out an FY 2018 budget resolution and what amounts to a 10-year fiscal plan. And it is there where the whole fantasy of the Trump Stimulus comes a cropper. There are not remotely 218 GOP votes for what would be a $12 -13 trillion add to the national debt with the Trump Stimulus program over the next decade – even with all the “dynamic” scoring and revenue “reflows” that are imaginable.

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How the sytem works (and then doesn’t): “..workers take on debt that fuels the profits of the corporates that dominate the consumer supply chains. However this rise in corporate profits has not been recycled back into the real economy via workers wages. There will come a point where the workers can no longer take on more debt. When this happens consumer demand will fall, wages will fall and unemployment will rise.”

Collapse In Demand (Fear)

John Maynard Keynes said that, a fall in bank lending leads to a fall in consumer demand creating recession. He was right, a fall in bank lending does create a fall in consumer demand, it also creates recession and in extreme cases can cause a complete meltdown of the entire economy as in 2008. So the question is, why does bank lending fall? A rise in interest rates can make new borrowing too expensive, it can also lead to existing borrowers defaulting on their loans. This was the catalyst for the 2007 subprime crash in the United States. The graph below shows that US interest rates went from 1% to 5% in the run up to the subprime crash.

Interest rate rises can accelerate a fall in borrowing and a fall in demand, but interest rate rises are not the cause of these falls. Borrowing would eventually, slowly fall over time even if interest rates had remained low. Most of us are now aware that banks create new deposits when they loan, they don’t lend other peoples deposits. How they do it is not important, accepting that they do, is fundamental to understanding the problem. See graph.

The bank creation of money via lending and debt is nothing new, what has changed is the amount of money creation and the ability to recycle this new money back to the debtors. The large increase in debt over the last 30 to 40 years has funded a massive increase in consumerism, consumerism is no longer constrained by wages but rather by how much debt people can accumulate. The graph below shows the result.

Basically we have a trickle up effect, workers take on debt that fuels the profits of the corporates that dominate the consumer supply chains. However this rise in corporate profits has not been recycled back into the real economy via workers wages. There will come a point where the workers can no longer take on more debt. When this happens consumer demand will fall, wages will fall and unemployment will rise. Existing loans made by workers will fall into default, creating another banking crisis. If the banks are not saved by government or central bank intervention the credit created by the banks will become worthless. So, it is in the interests of the wealthy elite to protect the banking system whatever the cost to the rest of society. In the end the wealthy elite will themselves, destroy the financial system by taking so much of it that demand collapses.

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Well, it’s true they were the only ones to go to jail…

Iceland’s Jailed Bankers Say They Were Scapegoats For Financial Crisis (AFP)

Once reviled symbols of rogue capitalism, Iceland’s ex-bankers now say they were scapegoats: jailed for their roles in the 2008 financial crisis, they’re taking their cases to the European Court of Human Rights. In 2008, after Iceland’s inflated financial system imploded, the three main banks Kaupthing, Glitnir, and Landsbanki collapsed. The government urgently nationalised them, then asked the IMF for an emergency bailout, a first for a western European country in 25 years. The crisis brought to light the bankers’ questionable practices, often involving artificially inflating the value of the banks’ assets by providing cheap loans to shareholders to buy even more shares in the bank. Without realising it, thousands of Icelanders had thus placed their life savings in a house of cards.

Since then, dozens of so-called “banksters” have been convicted, about 20 of them to prison, for manipulating the market. Some of them now claim they didn’t get fair trials, and have turned to the European Court of Human Rights. Sentenced by an Icelandic appeals court to four years in prison, Sigurdur Einarsson, the former chairman of the board of Kaupthing, spent one year behind bars before being released. He is critical of what he dubs Iceland’s “scapegoat” justice system, which he claims turned a blind eye to unlawful proceedings during his trial. “Some of the judges were partial … because they had lost a lot of money during the economic crisis,” Einarsson told AFP. “This was not a just and fair trial. (This is) very important because Iceland praises itself for being a Western democratic country, and one of the key issues for that is having fair trials for everyone.”

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Good topic for Parry to delve into.

Blaming Russia for Everything (Robert Parry)

When Sen. Marco Rubio’s presidential campaign fails seemingly because he was a wet-behind-the-ears candidate who performed like a robot during debates repeating the same talking points over and over, you might have cited those shortcomings to explain why “Little Marco” flamed out. However, if you did, that would make you a Russian “useful idiot”! The “real” reason for his failure, as we learned from Thursday’s Senate Intelligence Committee hearing, was Russia! When Americans turned against President Obama’s Pacific trade deals, you might have thought that it was because people across the country had grown sick and tired of these neoliberal agreements that have left large swaths of the country deindustrialized and former blue-collar workers turning to opioids and alcohol. But if you did think that, that would mean you are a dupe of the clever Russkies, as ex-British spy Christopher Steele made clear in one of his “oppo” research reports against Donald Trump.

As Steele’s dossier explained, the rejection of Obama’s TPP and TTIP trade deals resulted from Russian propaganda! When Hillary Clinton boots a presidential election that was literally hers to lose, you might have thought that she lost because she insisted on channeling her State Department emails through a private server that endangered national security; that she gave paid speeches to Wall Street and tried to hide the contents from the voters; that she called half of Donald Trump’s supporters “deplorables”; that she was a widely disliked establishment candidate in an anti-establishment year; that she was shoved down the throats of progressive Democrats by a Democratic Party hierarchy that made her nomination “inevitable” via the undemocratic use of unelected “super-delegates”; that some of her State Department emails were found on the laptop of suspected sex offender Anthony Weiner (the husband of Clinton’s close aide Huma Abedin); and that the laptop discovery caused FBI Director James Comey to briefly reopen the investigation of Clinton’s private email server in the last days of the campaign.

You might even recall that Clinton herself blamed her late collapse in the polls on Comey’s announcement, as did other liberal luminaries such as New York Times columnist Paul Krugman. But if you thought those thoughts or remembered those memories, that is just more proof that you are a “Russian mole”! As we all should know in our properly restructured memory banks and our rearranged sense of reality, it was all Russia’s fault! Russia did it by undermining our democratic process through the clever means of releasing truthful information via WikiLeaks that provided evidence of how the Democratic National Committee rigged the nomination process against Sen. Bernie Sanders, revealed the contents of Clinton’s hidden Wall Street speeches, and exposed pay-to-play features of the Clinton Foundation in its dealings with foreign entities.

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Weird games. That’s Brussels for you.

EU Offers Spain Veto Right Over Gibraltar After Brexit Talks (R.)

The European Union on Friday offered Spain a right of veto over the future relationship between Gibraltar and the EU after Britain leaves the bloc, a move that could smooth Brexit talks but also dash Gibraltar’s hopes of winning a special status. The future of Gibraltar, a rocky British enclave on Spain’s southern tip, is set to be a major point of contention in the exit talks along with issues relating to Britain’s access to the EU’s single market or the future rights of EU citizens in the U.K. and of Britons living in Europe. Rows between Spain and Britain over Gibraltar have held up entire EU deals in the past – including current legislation governing air travel – and Brussels is keen to avoid a new bilateral dispute getting in the way of an orderly Brexit.

“This seems intended to give Spain something so they don’t try to hold the whole withdrawal treaty hostage over it,” one senior EU diplomat said in Brussels. According to the EU’s draft joint position on the exit talks, which the remaining members are due to approve on April 29, “after the United Kingdom leaves the Union, no agreement between the EU and the United Kingdom may apply to the territory of Gibraltar without the agreement between the Kingdom of Spain and the United Kingdom.” In essence, it offers Madrid a special share of power over Gibraltar’s fate, but only once the territory is no longer an internal EU problem. A spokesman for the Spanish government said Madrid was satisfied with the decision.

“It is what we wanted and what we have said from the beginning… The recognition by the European Union of the legal and political situation that Spain has defended fully satisfies us,” Inigo Mendez de Vigo told a news conference following the weekly cabinet meeting. The Government of Gibraltar issued a statement on Friday evening saying that the draft suggested Spain was trying to get away with mortgaging the future relationship between the EU and Gibraltar. “This is a disgraceful attempt by Spain to manipulate the European Council for its own, narrow, political interests (…) a clear manifestation of the predictably predatory attitude that we anticipated Spain would seek to abusively impose on its partners,” the Chief Minister of Gibraltar, Fabian Picardo, said in an e-mailed statement.

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And you should wish to be part of a Union that does such things? I don’t get that. What is that, Stockholm Syndrome?

The European Union Lays Out A Greek Trap For The United Kingdom (Coppola)

Following the UK’s formal resignation on Wednesday March 29th 2017, the European Union has now laid out its approach to negotiating the United Kingdom’s exit from the bloc. At first glance, the draft negotiation guidelines appear friendly and reasonable. But don’t be fooled. They contain a trap with which followers of the Greek bailout negotiations should be all too familiar. At this point, Brexit supporters will no doubt scream “The UK is not like Greece!”. Of course it isn’t. It is one of the largest economies in Europe, and its departure will leave a gaping wound in the EU which will take some time to heal. A smooth, orderly exit is in everyone’s interests, to minimize damage on both sides and promote healing. And this is what both the UK and the EU say they want. So why do I say there is a trap?

The essence of the Greek negotiations is that the debt relief that Greece so desperately needs is conditional on Greece meeting all the EU creditors’ conditions, in full. The EU will not even discuss debt relief until sufficient progress has been made on everything else. Every time Greece draws nearer to debt relief it is snatched away, either by adding new conditions or by finding reasons to doubt that conditions have really been met. Of course, the UK is not looking for debt relief. It is after another prize. Theresa May’s letter outlined what the UK wants “Agreeing a high-level approach to the issues arising from our withdrawal will of course be an early priority. But we also propose a bold and ambitious Free Trade Agreement between the United Kingdom and the European Union. This should be of greater scope and ambition than any such agreement before it so that it covers sectors crucial to our linked economies such as financial services and network industries.”

Wonderful. Not only does the UK want a free trade agreement to be agreed before it leaves the bloc, it apparently wants that agreement to give it better terms than any trade agreement the EU has with any other country. I don’t know who constructed this flight of fancy, but it has about as much chance of seeing the light of day as a bottom-feeder in the Marianas Trench.

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“Request a Norway-like agreement for an interim period – something that they cannot refuse..”

Theresa May May Have Miscalculated (Varoufakis)

Prime Minister May is keen to avoid a defeat at the hands of EU negotiators determined to do to the UK that which they did to Greece in 2015. Correctly, she has set out to arm herself with a credible threat. The problem is that she may have miscalculated her optimal strategy. By making a hard Brexit the default of the negotiations’ process, Mrs May has secured its credibility. However, a credible threat can still produce an undesirable outcome. London’s greatest miscalculation would be to assume that the EU’s negotiators are committed to the bloc’s economic interests. Whilst negotiating Greece’s debt to the EU with them, I realised in horror that they cared very little about getting their money back and a great deal more about shoring up their relative positions in the games they play with one another – even if this sacrificed large economic gains. Mrs May will encounter this mindset soon in Berlin, Brussels and Paris.

If my experiences are anything to go by, a frustrating two years await British negotiators. They are faced with the EU’s favourite tactics: The EU Run-Around (as Brussels refers them to Berlin and vice versa), the Swedish National Anthem Routine (the feeling that whether you have outlined a sensible proposal or sung Sweden’s national anthem they react the same way), the All-Or-Nothing Ruse (refusing to discuss any issue unless all issues are simultaneously discussed) and the Blame Game (censuring you for THEIR recalcitrance). Nothing good, for Britain or for the EU, will come out of this process. It is why I recommend a strategy that robs Brussels of all room to manoeuvre. That is: Request a Norway-like agreement for an interim period – something that they cannot refuse – and empower the next UK parliament to design and pursue Britain’s long-term relationship with the EU.

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“Observers fear that Turkey could take other countries along with it. The country holds $270 billion of debt with international banks, with $87 billion of that total in Spain, $42 billion in France and $15 billion in Germany.”

The Demise of the Anatolian Tiger – Turkey on Verge of Bankruptcy (Spiegel)

[..] the aftermath of the coup attempt — the mass arrests of opposition activists and the confiscation of companies – has scared investors off. The rating agencies Moody’s and Standard & Poor’s have slashed Turkey’s credit rating to junk status and foreign investment plunged by over 40% last year. Yigit says that he can hardly find anyone anymore who is interested in doing business in Turkey. “The risk is simply too high for investors,” he says. Meanwhile, clients who have been economically involved in the country for years are now pulling their money out. The capital flight has triggered a downward spiral that has been particularly noticeable in the construction industry.

Turkey’s high growth rates in recent years were fueled primarily by infrastructure projects, with Erdogan pouring money into the construction of highways, hospitals and airports. Now, though, there is insufficient foreign capital available and growth is stagnating. Furthermore, political instability has led to a steep drop in tourism revenues, with a plunge of roughly one-third last year. There are hundreds of hotels up for sale on the Turkish Riviera, on the country’s southwest coast, and some 600 of 2,000 shops in Istanbul’s Grand Bazaar have been forced to close since last summer, according to the bazaar’s merchant association. Turkish Airlines has taken 30 planes out of service.

The consequences of the struggling economy can be seen in day-to-day life: Companies have been forced to lay off workers and cut salaries; people have less money. Domestic consumption, which made up 60% of the country’s GDP last year, has shrunk. At the same time, the Turkish currency, the lira, has rapidly lost value and inflation stands at 10%. “We are heading toward the worst-case scenario: economic stagnation combined with persistent inflation,” says Istanbul-based economic writer Mustafa Sönmez. “Turkey is on the verge of bankruptcy.” Observers fear that Turkey could take other countries along with it. The country holds $270 billion of debt with international banks, with $87 billion of that total in Spain, $42 billion in France and $15 billion in Germany. Should the country default or partially default, Sönmez believes, it could trigger another financial crisis in Europe.

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Turkey’s army has gotten even weaker after Erdogan fired tens of thousands, among them many officers.

The Pentagon Doesn’t Want Turkey’s Help In Syria (WE)

Like a marriage held together for the sake of the kids, the U.S. and Turkey keep saying nice things in public, while privately fuming and slowly drifting apart. The growing rift between the two countries stems from the intractable dispute over the U.S. plan to liberate Raqqa with a loose coalition of Syrian fighters comprising roughly 40% Kurdish YPG militia members, who Turkey considers terrorists. Turkish President Recep Tayyip Erdogan has offered his military to drive the Islamic State out of its self-proclaimed capital in Raqqa, if only the U.S. will quit the Kurds. Turkey regards the Kurdish Popular Protection Units, or YPG, as an extension of the banned Kurdistan Workers’ Party or PKK, which has been declared a terrorist group by both Turkey and the U.S. But the Pentagon says the Kurds have proven to be the most battle-hardened and combat-effective force fighting ISIS in Syria, and it has no plans to abandon them now.

Publicly the U.S. says it’s still working with its NATO ally Turkey to find a role for it in the upcoming Raqqa offensive, but here’s the unspoken truth: The U.S. has also judged that the Turkish military is not up to the task, based on its performance in northern Syria. On Aug. 24, Turkey launched “Operation Euphrates Shield,” sending tank and troops into Syria with the stated objective of pushing ISIS back 60 miles from its shared border, and the unstated goal of keeping Kurdish forces from controlling an unbroken swath of land stretching back into Iraq. This past week, Turkey declared Euphrates Shield a success and ended the mission, a move Pentagon sources say was in fact largely because the U.S., Russia and Syria stymied the Turkish offensive from any further gains. The Turks did take the northern Syrian towns of Jarablus, Dabiq and al-Bab from ISIS, but their plan to move against the Kurds in Manbij was foiled when the U.S. positioned Army Rangers just outside the city and declared Manbij was in no further need of liberation.

And the Turkish forces had also suffered heavy losses in the fight against ISIS in al-Bab, or as one Pentagon official put it, “They got their asses kicked.” Meanwhile, Syrian and Russian forces have advanced across the Turkish forces’ southern flank in Syria, effectively blocking any movement south to Raqqa. Essentially hemmed in with nowhere to go, the Turkish forces called it a day and declared mission accomplished. Several Pentagon officials, who talked the Washington Examiner on condition of anonymity because they are not authorized to discuss war planning publicly, said the major U.S. takeaway is that Turkish troops lack the training, logistics and weaponry to successfully launch the siege of a fortified and well-defended city. Consider that across the border in Iraq, 100,000 Iraqi troops have all they can handle trying to finish off fewer than 1,000 ISIS fighters in west Mosul.

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Yeah, we’re so smart.

Salmon Farming In Crisis: ‘A Chemical Arms Race In The Seas’ (G.)

Every day, salmon farmers across the world walk into steel cages – in the seas off Scotland or Norway or Iceland – and throw in food. Lots of food; they must feed tens of thousands of fish before the day is over. They must also check if there are problems, and there is one particular problem they are coming across more and more often. Six months ago, I met one of these salmon farmers, on the Isle of Skye. He looked at me and held out a palm – in it was a small, ugly-looking creature, all articulated shell and tentacles: a sea louse. He could crush it between his fingers, but said he was impressed that this parasite, which lives by attaching itself to a fish and eating its blood and skin, was threatening not just his own job, but could potentially wipe out a global multibillion-dollar industry that feeds millions of people.

“For a wee creature, it is impressive. But what can we do?” he asks. “Sometimes it seems nature is against us and we are fighting a losing battle. They are everywhere now, and just a few can kill a fish. When I started in fish farming 30 years ago, there were barely any. Now they are causing great problems.” Lepeophtheirus salmonis, or the common salmon louse, now infests nearly half of Scotland’s salmon farms. Last year lice killed thousands of tonnes of farmed fish, caused skin lesions and secondary infections in millions more, and cost the Scottish industry alone around £300m in trying to control them. Scotland has some of the worst lice infestations in the world, and last year saw production fall for the first time in years.

But in the past few weeks it has become clear that the lice problem is growing worldwide and is far more resistant than the industry thought. Norway produced 60,000 tonnes less than expected last year because of lice, and Canada and a dozen other countries were all hit badly. Together, it is estimated that companies across the world must spend more than £1bn a year on trying to eradicate lice, and the viruses and diseases they bring. As a result of the lice infestations, the global price of salmon has soared, and world production fallen. Earlier this year freedom of information [FoI] requests of the Scottish government showed that 45 lochs had been badly polluted by the antibiotics and pesticides used to control lice – and that more and more toxic chemicals were being used.

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You can’t let children pay the price.

Italy Praised For Giving Lone Child Refugees Legal Protection (Week)

Italy has become Europe’s first country to pass a law giving comprehensive protection to lone child migrants. Known as the Zampa law, the legislation sets minimum standards of care, such as reducing the time children can be kept in migrant reception centres, guaranteeing access to healthcare and setting a ten-day window for authorities to confirm their identities. It also prohibits turning unaccompanied and separated children away at the border or if it could cause them harm, AP reports. Unicef, the UN’s children agency praised the move and said it was the first of its kind in Europe. Afshan Khan, Unicef’s special coordinator for the refugee and migrant crisis in Europe, said: “While across Europe we have seen fences going up, children detained and pledges unmet, the Italian parliamentarians have shown their compassion and duty to young refugees and migrants.

“This new law serves not only to give refugee and migrant children a sense of predictability in their uncertain lives after risking so much to get to Europe, it serves as a model for how other European countries could put in place a legislative framework that supports protection.” The number of unaccompanied child migrants arriving in Italy is believed to still be on the increase, says the charity. In 2016, around 26,000 children arrived in the country without their families, the majority crossing the Mediterranean in unsafe boats from North Africa. In the first two months of 2017, 2,000 arrived, the majority aged between 14 and 17. Italy’s move is in stark contrast to the UK, where MPs earlier this month chose not to continue a scheme to accept more lone child refugees from Europe.

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Just lovely.

Europe Keeps Its Rescue Ships Far From Where Refugees Drown (I’Cept)

An average of 3,500 people have died each year while trying to make the journey to Italy from North Africa since 2014. Their vessels are overcrowded, unseaworthy, and have a near-nothing chance of making it to Europe. Most of the boats sink just 20 to 40 miles from the Libyan coast. These are preventable deaths. Since 2014, the European Union has deliberately chosen to keep their coast guard patrol boats far from where the shipwrecks happen, a decision detailed in an internal letter obtained by The Intercept and other leaked documents. Saving more lives, the logic goes, will only encourage more refugees to come. The result is that rescue boats are kept away from where rescues are actually needed.

The Italian navy used to run patrols near the Libyan coast. Their operation, called Mare Nostrum – “our sea” in Latin – involved a large mobilization of ships, planes, and helicopters in international waters close to Libya, where boats carrying refugees regularly capsized and sank. Mare Nostrum was enormously successful — in the year it ran, it saved over 150,000 people. Still, on October 31, 2014, Italy announced it would phase out the program. The following day, Frontex, the European Union’s border agency, took over with an operation called Triton. In a press release at the time, Frontex said its operation followed in the wake of Mare Nostrum and was intended to support the Italian authorities. There was one key difference from Mare Nostrum, however: Frontex would limit its patrols to just 30 miles off Italy’s coast, which was about 130 miles from Libya — at least a 12-hour sail. Frontex was deliberately not patrolling the area where most of the shipwrecks occurred.

What’s more, according to an internal letter obtained by The Intercept, the director of operations at Frontex privately told Italian authorities that his ships should not be called on to immediately respond to distress calls from outside their 30-mile patrol area. “Frontex is concerned about the engagement of Frontex deployed assets in the activities happening significantly outside the operational area,” Frontex’s director, Klaus Roesler, wrote to the head of Italy’s Immigration and Border Police, Giovanni Pinto, on November 25, 2014. The letter has been referenced in Italian newspapers and released with redactions that covered detailed descriptions of how Frontex coordinated its assistance with rescue efforts. The Intercept is publishing the letter in full for the first time.

Like any other vessels at sea, Frontex ships are obligated under maritime law to respond to distress calls when ordered by the relevant national authorities. For the Italians, an overloaded boat with an untrained captain was a distress situation by default. Typically, someone calls the Maritime Rescue Coordination Center in Rome by satellite phone from a boat or from the Libyan coast, and Italy initiates search and rescue. But for Frontex, at the time, that was not enough proof. [..] Frontex knew it had to respond to emergency calls. But it was deliberately patrolling in the wrong area and quibbling with definitions of distress, meaning that its ships would almost certainly arrive late, if at all.

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