Jun 042019
 June 4, 2019  Posted by at 7:30 pm Finance, Primers Tagged with: , , , , , , , , , ,  

Francisco Goya The dog 1820-23


What follows are items from sources not everyone may like, such as Fox and The Hill. But please bear with me, because if you want to understand what is about to happen in the US, you’re going to need this kind of info, and you’re not likely to get it from the mainstream media.

The overall term here is questions. There are too many to list. Some will merely be asked, some will be asked and answered, others will not be asked at all. It’s going to be a jousting match between lawyers and prosecutors, investigators and politicians. It’s safe to say it’s going be ugly.

First off, as Zero Hedge reports, Christopher Steele, after long refusing to, has agreed to talk to investigators from the US Justice Department’s Office of the Inspector General.


Steele Agrees To Discuss Trump Dossier With DOJ Inspector General

Former MI6 agent Christopher Steele has finally agreed to meet with US officials to discuss his relationship with the FBI, and the now-infamous dossier of unfounded claims against Donald Trump which he assembled on behalf of the Clinton campaign and the Democratic National Committee. The 54-year-old Steele has agreed to meet with investigators from the US Justice Department’s Office of the Inspector General (OIG), according to The Times of London, after a former US official told Politico that the OIG report would “try to deeply undermine” Steele.

The news marks a 180-shift in Steele’s past refusals to engage with US authorities. In April, Politico reported that Steele would not meet with the OIG to assist them with their investigation, while just last week, Reuters reported that he wouldn’t meet with US attorney John Durham, who was handpicked by AG William Barr to review the origins of the Trump-Russia probe.

Steele, a MI6 Russia specialist for more than two-decades, has worked with the FBI as a confidential source since 2010. According to the report, he will retain the services of a top American attorney if the interview goes ahead, and is only willing to discuss the narrow scope of his dealings with US intelligence. Steele also wanted US officials to seek the approval of the British government.

Steele’s lawyers will try to limit the topics on the table as much as they can. But that may not be enough. There are very serious doubts and allegations surrounding the Steele Dossier, as well as the clients he prepared the report for. There’s Hillary Clinton, there’s the DNC, there’s their law firm Perkins Coie, there’s Fusion GPS, there’s its CEO Glenn Simpson, there’s the FBI, there’s the 2016 DOJ, and then there’s John Brennan and James Clapper. All these parties have played roles in making sure the dossier was ‘prepared’.

That is a lot of parties. How Steele is going to talk under oath without implicating one or more of them in shady dealings if not downright criminal activities is hard to imagine. If only because the dossier leads straight to the Mueller report, which would never have been written if the Steele dossier had not been used to -possibly illegally- get FISA warrants.

Moreover, Robert Mueller is now being accused of tampering with evidence he used in his report. I know I seem to be jumping from Steele to Mueller kind of suddenly, but these things are very closely connected, so I’ll allow myself that freedom.

It appears from files released on the order of judge Sullivan that Mueller has tampered with his own evidence. He omitted part of a phone conversation between lawyers for Trump and those for Michael Flynn, ostensibly to create the impression that the former sought confidential information.


Ex-Trump Lawyer John Dowd Slams Mueller Report As A ‘Fraud’

Nunes, ranking member of the House Intelligence Committee, was reacting to the release of a voicemail message that John Dowd, a former lawyer for President Trump, had left for a lawyer representing former national security adviser Michael Flynn, in which Dowd asks for a “heads up” if Flynn planned to say anything damaging about Trump to Mueller’s team. Nunes retweeted a side-by-side comparison of the Dowd transcript text and the Mueller report text, suggesting that the Mueller report did not disclose the full Dowd message.

The Mueller report had redacted the part of the voicemail where Dowd said he wanted the heads up “not only for the president but for the country” and that he wasn’t asking for “any confidential information.” Alan Dershowitz claimed on “Hannity” Monday night that the quotation was “distorted.” “This is a very, very serious issue,” he said. “The distortion of the Dowd quote is very serious. Especially since, remember, that a report by a special counsel is always going to be one-sided. Therefore, you have to trust it.”


Totally separate from the above development, Democrat House Majority Leader Steny Hoyer wants Mueller to talk to Congress no matter what. The Dems of course want to get dirt on Trump from Mueller, but given that development, added to many other questions GOP Congressmen already wanted to ask him, the Mueller testimony may well backfire in spectacular fashion. Do they realize this?


Hoyer: Democrats Should Subpoena Mueller If Necessary

House Majority Leader Steny Hoyer (D-Md.) said Tuesday that Democrats should insist on special counsel Robert Mueller’s appearance before Congress, even if it requires a subpoena. “I think he ought to testify. He may want a subpoena, for all I know,” Hoyer said during his weekly press briefing in his Capitol office. “He indicated that his report speaks for itself. Very frankly, … questioning is an important fact-finding pursuit.”

Mueller said last week during brief remarks at the Justice Department that he hoped those statements — combined with his 488-page report — would be his last word on the topic. It was a clear indication that the former FBI chief — who’s built a reputation for nonpartisanship over his long career in Washington — is hoping to avoid the political circus that would surely accompany his return to Capitol Hill.

But Democrats are fighting to secure his testimony, emphasizing the importance of hearing the author of the report elucidate its conclusions. Both Reps. Jerrold Nadler (D-N.Y.), chairman of the House Judiciary Committee, and Adam Schiff (D-Calif.), chairman of the Intelligence Committee, are in negotiations with Mueller’s team in an effort to secure the special counsel’s testimony. [..] Another Democratic lawmaker familiar with the talks said a major sticking point remains Mueller’s reluctance to testify publicly, as Democrats are insisting.

“We’re trying to do everything possible to get him out in the open,” said the lawmaker, who spoke anonymously to discuss the sensitive negotiations. Democrats are also wary that Mueller will be unwilling to answer clarifying questions outside the literal text of his report, the lawmaker said. “The concern is that Mueller is just going to sit there like a parrot and parrot the report,” the lawmaker said. “And there’s not going to be anything meaningfully new coming out of the testimony.”

Here are a few questions Mueller may be called upon to answer, courtesy of Sharyl Attkisson at The Hill. Most if not all appear to me to be reasonable, and there seems to be little reason not to demand they are answered. The credibility of the entire American political system, as well as the intelligence community, is at stake.


Robert Mueller’s Parting Shot: 10 Questions I’d Like To Ask

The statement Mueller chose to give carries with it an implication that his team looked for evidence of President Trump’s innocence but simply could not find it. With that in mind, I thought of a short list of questions I’d like to ask Mueller, if ever permitted to do so:

1) What witnesses did you interview and what evidence did you collect in an attempt to exonerate Trump or prove him not guilty? (I believe the answer would be, “None. It’s not the job of a special counsel or prosecutor to do so.” Therefore, was Mueller’s comment appropriate?)

2) Does it concern you that the FBI claimed “collection tool failure” in stating that 19,000 text messages between former FBI employees Lisa Page and Peter Strozk had been deleted and were unavailable for review by the Department of Justice (DOJ) inspector general? Is it worth investigating how the inspector general was able to recover the messages, when the FBI said it could not? Does the FBI lack the technical expertise, or the will? Isn’t it a serious issue that should be addressed, either way?

3) Along the same lines, do you think it strange or inappropriate that the DOJ wiped text messages between Strzok and Page from their special counsel cell phones? The deletions happened shortly after they were ejected from the team and before the DOJ’s Office of the Inspector General could review them — at a time when all had been informed that their actions were under review. Did technicians attempt to recover the messages? Were the circumstances of the deletions thoroughly investigated?

4) When did you first learn that the FBI and DOJ signed off on and presented unverified, anti-Trump political opposition research to a court to get wiretaps on an innocent U.S. citizen? Doesn’t this violate the strict procedures enacted while you were FBI director, intended to ensure that only verified information is seen by the court? Who will be held accountable for any lapses in this arena?

5) Do these issues point to larger problems within our intelligence community, in terms of how officials operate? Does that put you in a position where there’s a conflict of interest since you were in charge of the FBI when prior surveillance abuses were identified by the Foreign Intelligence Surveillance Court? Did you consider disclosing this potential conflict and stepping aside, or referring any issues that overlap with your interests?

6) What steps did you take after Strzok and Page were exposed, to try to learn if other investigators on your team likewise were conflicted? Did you take action to segregate the work of these agents and any potential biases they injected into your investigation and team? Wasn’t their behavior a beacon to call you to follow an investigative trail in another direction?

7) Did you become concerned about foreign influence beyond Russia when you learned that a foreign national, Christopher Steele, claimed to have obtained opposition research from Russian officials connected to Putin — and that the FBI and DOJ presented this material to the Foreign Intelligence Surveillance Court to obtain wiretap approvals?

8) Were you aware that some Democratic Party officials acknowledged coordinating with Ukraine in 2016 to undermine Trump and his associates and to leak disparaging information to the news media?

9) Is it true that you applied for the job as FBI director but Trump rejected you, the day before then-Acting Attorney General Rod Rosenstein appointed you as special counsel to investigate Trump? Does that put you in a potentially conflicted position?

10) Do you think Donald Trump is guilty of a crime? If so, then do you believe he is perhaps the most clever criminal of our time since he was able to conceal the evidence despite all the government wiretaps, investigations, informants, surveillance and hundreds of interviews spanning several years?

And then when the DOJ, as well as AG William Barr’s team, are done with Mueller, The Hill’s John Solomon has another set of questions, this time for Hillary Clinton. And again, the credibility of the entire American political system, as well as the intelligence community, is at stake. Is Hillary untouchable?


Hillary Clinton’s Russia Collusion IOU: The Answers She Owes America

Here are 10 essential questions:

1) In January 2018, the Senate Judiciary Committee sent a formal investigative request for documents and written answers from your campaign. Do you plan to comply?

2) Please identify each person in your campaign who was involved with, or aware of, hiring Fusion GPS, Glenn Simpson and Christopher Steele.

3) Please identify each person in your campaign, including Perkins Coie lawyers, who were aware that Steele provided information to the FBI or State Department, and when they learned it.

4) Describe any information you and your campaign staff received, or were briefed on, before Election Day that was derived from the work of Simpson, Steele, Fusion GPS, Nellie Ohr or Perkins Coie and that tried to connect Trump, his campaign or his business empire with Russia.

5) Please describe all contacts your campaign had before Election Day with or about the following individuals: Bruce Ohr, Nellie Ohr, Glenn Simpson, Christopher Steele, former Australian diplomat Alexander Downer, former foreign policy scholar Stefan Halper and Maltese academic Joseph Mifsud.

6) Did you or any senior members of your campaign, including lawyers such as Michael Sussmann, have any contact with the CIA, its former Director John Brennan, current Director Gina Haspel, James Baker, Peter Strzok, Lisa Page or former FBI Deputy Director Andrew McCabe?

7) Describe all contacts your campaign had with Cody Shearer and Sidney Blumenthal concerning Trump, Russia and Ukraine.

8) Describe all contacts you and your campaign had with DNC contractor Alexander Chalupa, the Ukraine government, the Ukraine Embassy in the United States or the U.S. Embassy in Kiev concerning Trump, Russia or former Trump campaign chairman Paul Manafort.

9) Why did your campaign and the Democratic Party make a concerted effort to portray Trump as a Russian asset?

10) Given that investigations by a House committee, a Senate committee and a special prosecutor all have concluded there isn’t evidence of Trump-Russia collusion, do you regret the actions by your campaign and by Steele, Simpson and Sussmann to inject these unfounded allegations into the FBI, the U.S. intelligence community and the news media?

The Democrats, including Hillary Clinton, had their day in the sun with the 2 years Mueller probe. Now ‘the other side’ has its turn. And it makes no difference what side you are on, or even whether you think that is fair, this is going to happen. How it can go down without people being indicted, I can’t see. Same as with some Trump allies. Paul Manafort was sent to Rikers Island today.

Still, in the same way that it’s impossible to predict which questions will eventually be asked, and which the legal experts on all sides decide should not be asked, it’s not possible at this point to foresee where the hammer will come down hardest. But it’s not going to be pretty.

Then again, we’re looking, down the line, at Brennan and Clapper and the entire intelligence community. Do Barr and IG Horowitz have the clout and the strength and determination to clean up that mess? Here’s hoping that they do. America needs a thorough cleansing, badly.





Apr 242019

Giovanni Bellini Pietà 1474


Bipolar Markets in the “New Mediocre” (Roubini)
Fed Key Interest Rate Keeps Climbing, That Could Become A Problem (CNBC)
Cut the Price and They Will Come: US New Home Prices At Dec. 2014 Level (WS)
Chinese Banks Are Running Out Of Dollars (ZH)
Hillary Outlines “Roadmap” To Trump Impeachment (ZH)
The Conspiracy Against Trump (Giraldi)
Theresa May Accuses Labour Of Dragging Its Heels In Brexit Talks (Ind.)
Labour Says Theresa May Unwilling To Offer Key Brexit Concessions (G.)
UK MPs Campaign To Have Donald Trump’s State Visit Cancelled (G.)
The Revelations of WikiLeaks: No. 1 (CN)



Who will be the first in the world of finance to understand what’s going on AND be honest about it? It won’t be Roubini. Nothing has anything to do with recession or trade risks anymore. It’s the Fed and the Fed only. And there are no investors as long as the Fed monopolizes what were once markets. These so-called investors are in reality a bunch of rich socialists waiting for a central bank to hand them money. They’ll also be the first to warn about the dangers of socialism.

Bipolar Markets in the “New Mediocre” (Roubini)

Financial markets tend to undergo manic-depressive cycles, and this has been especially true in recent years. During risk-ons, investors – driven by “animal spirits” – produce bull markets, frothiness, and sometimes outright bubbles; eventually, however, they overreact to some negative shock by becoming too pessimistic, shedding risk, and forcing a correction or bear market. Whereas prices of US and global equities rose sharply throughout 2017, markets began to wobble in 2018, and became fully depressed in the last quarter of the year. This risk-off reflected concerns about a global recession, Sino-American trade tensions, and the Federal Reserve’s signals that it would continue to raise interest rates and pursue quantitative tightening.

But since this past January, markets have rallied, so much so that some senior asset managers now foresee a market “melt-up” (the opposite of a meltdown), with equities continuing to rise sharply above their current elevated levels. One could argue that this latest risk-on cycle will continue for the rest of the year. For starters, growth is stabilizing in China, owing to another round of macroeconomic stimulus there, easing fears of a hard landing. And the United States and China may soon reach a deal to prevent the ongoing trade war from escalating further.

At the same time, US and global growth are expected to strengthen somewhat in the second half of the year, and the disruption of a “hard Brexit” has been averted, with the European Union extending the deadline for the United Kingdom’s departure to October 31, 2019. As for the eurozone’s prospects, much will depend on Germany, where growth could rebound as global headwinds fade. Moreover, central banks, particularly the Fed, have become super-dovish again, and this appears to have reversed the tightening of financial conditions that produced the risk-off in late 2018.

Read more …

They are well on their way towards blowing up the entire US economy. Just like their counterparts in Japan, Europe, China. Will Russia be the last one standing?

Fed Key Interest Rate Keeps Climbing, That Could Become A Problem (CNBC)

The Federal Reserve’s benchmark interest rate has inched up to its highest level in 11 years even though the central bank has sent a clear message that it is done tightening policy indefinitely. In recent days, the effective fed funds rate, which targets the overnight level that banks charge each other for loans, has moved up to 2.44%. That’s the highest since March 2008 and is just 6 basis points from the top of the target range and the closest to the top since December, when the Fed last raised rates. For now, the move is looked on as not being especially problematic given that there is still room between the current level and the top of the 2.25% to 2.5% range in which the rate is supposed to trade.

But moves toward the upper end of the band have prompted action before, and the trend likely will be a topic of discussion at next week’s Federal Open Market Committee meeting. When the Fed first began raising rates in December 2015, it succeeded in keeping the funds rate around the midpoint of the target range. But that has changed over the past year. “At 6 basis points from the top of the range, you’re still within the target. The question becomes whether they think technical pressure is driving this,” said Lou Crandall, chief economist at Wrightson ICAP and formerly of the New York Fed. “The only concern is whether you’ll have to make a technical adjustment in the future from preventing it from going higher.”

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Fed to the rescue! Actually, as long as banks write new loans, the Fed can and will hold back.

Cut the Price and They Will Come: US New Home Prices At Dec. 2014 Level (WS)

Home builders, the ultimate pros in the housing market, have figured out something after the malaise in the second half last year: Cut prices and buyers will come. The median selling price of new houses dropped 9.7% in March from March last year to $302,700, the Commerce Department reported this morning. This took the price back to about where it had first been in December 2014 ($301,500):

Homebuilders are motivated to move their speculative inventory. They’re making deals at lower prices, and they’re building homes at lower price points. And buyers responded. House sales at the lower end gained market share while houses at the higher end lost market share. Houses that were sold below $200,000 made up 16% of the mix in March, up from 11% in March 2018. Houses that were sold at prices of $400,000 or higher in March made up 29% of the mix, down from 32% in March 2018. This shift in the market, and the price cuts by homebuilders, has pushed the median new house price down 11.8% from the peak in December 2017. The year-over-year price drops starting in November last year were the sharpest such drops since Housing Bust 1:

The new-house sales data, produced jointly by the Census Bureau and the Department of Housing and Urban Development, is volatile. It is revised in the following months, often quite drastically. But after a while, the trends become clear. For the long-term view: The median price of new houses ballooned by about 55% from the range in 2011 and 2012 to the peak in December 2017 ($343,300). This peak had exceeded by 31% the crazy peak of Housing Bubble 1 in March 2007. When it comes to price, the sky is not the limit:

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Give ’em a swap line.

Chinese Banks Are Running Out Of Dollars (ZH)

Following the biggest quarterly credit injection in Chinese history, it is safe to say that China’s banks are flush with yuan loans. However, when it comes to dollar-denominated assets, it’s a different story entirely. As the WSJ points out, in the past few years, a funding problem has emerged for China’s biggest commercial banks, one which is largely outside of Beijing’s control: they’re running low on US dollars so critical to fund operations both domestically and abroad. As shown in the chart below, the combined dollar liabilities at China’s four biggest commercial banks exceeded their dollar assets at the end of 2018, a sharp reversal from just a few years ago.

Back in 2013, the four together had around $125 billion more dollar assets than liabilities, but now they owe more dollars to creditors and customers than are owed to them. The reversal is the result of just one bank: Bank of China, which for many years held more net assets in dollars than any other Chinese lender, ended 2018 owing $72 billion more in dollar liabilities than it booked in dollar assets. The other “top 3” lenders finished the year with more dollar assets than liabilities, even though their net dollar surplus has shrunk substantially in the past five years.

And yet, as everything else with China, there is more than meets the eye: as the WSJ reports looking at Bank of China’s annual report, the bank’s asset-liability imbalance is more than addressed by dollar funding that doesn’t sit on its balance sheet. Instruments like currency swaps and forwards are accounted for elsewhere. This is reminiscent of the shady operations discussed recently involving Turkey’s FX reserves, where the central bank has been borrowing dollar assets from local banks via off balance sheet swaps, which it then used to prop up and boost the lira at a time of aggressive selling of the local currency. It is safe to assume that the PBOC has been engaging in a similar operation.

Read more …

Hmmm. Hillary says: “You don’t put impeachment on the table as the only item on the table and say you’re going to get there no matter what.

But as I said yesterday, that is precisely what Nadler appears to do: “I do think, if proven – which hasn’t been proven yet – if proven, some of this would be impeachable, yes,” Nadler said..”

At best awfully close.

Hillary Outlines “Roadmap” To Trump Impeachment (ZH)

Just hours after Nancy Pelosi attempted to mend the gaping division between the realists and the extremists in her party, failed presidential candidate Hillary Clinton decided to pile into the impeachment debate with her own take on the Mueller Report. “Well, I think what Nancy means, and I agree with what she means, is that it shouldn’t be a preordained conclusion, it shouldn’t be what you do for partisan, political purposes almost outside the framework of the Constitution,” she said during an appearance at the Time 100 Summit in New York. “You don’t put impeachment on the table as the only item on the table and say you’re going to get there no matter what, which is what happened in ’99. Instead, you say we are going to proceed with the seriousness that this demands.”

Dripping with irony, Clinton – whose husband was impeached by the House of Representatives in 1998 for perjury and obstruction of justice (only to be acquitted the following year by the Senate), and allegedly used her position to gain personal wealth through pay-to-play peddling of her and her husband’s influence – discuss the roadmap to President Trump’s impeachment and said he should have been indicted. “I have a kind of weird personal history about impeachment,” Clinton said to laughter from the audience. But, “not what you’re thinking,” she added, referring to her time as a staff attorney serving on the impeachment inquiry for former President Richard Nixon two decades earlier in 1974.

“I was one of the young lawyers who actually drafted the memo about what is a high crime and misdemeanor, and it was truly meant by our founders to describe actions that undermine the integrity of our government that placed the personal or political interest in a president over the interest of the nation,” she said.

Read more …

It makes no difference where you stand on the issue(s), this is what you will have to deal with going forward. First off, the Horowitz report next month: “he intends to make criminal referrals as a result of his investigation.”

The Conspiracy Against Trump (Giraldi)

Whether the Mueller report is definitive very much depends on the people they chose to interview and the questions they chose to ask, which is something that will no doubt be discussed for the next year if not longer. Beyond declaring that the Trump team did not collude with Russia, it cast little light on the possible Deep State role in attempting to vilify Trump and his associates. The investigation of that aspect of the 2016 campaign and the possible prosecutions of former senior government officials that might be a consequence of the investigation will likely be entertaining conspiracy theorists well into 2020. Since Russiagate has already been used and discarded the new inquiry might well be dubbed Trumpgate.

The media has scarcely reported how Michael Horowitz, the Inspector General of the Department of Justice (DOJ), has been looking into the activities of the principal promoters of the Russiagate fraud. Horowitz, whose report is expected in about a month, has already revealed that he intends to make criminal referrals as a result of his investigation. While the report will only cover malfeasance in the Department of Justice, which includes the FBI, the names of intelligence officers involved will no doubt also surface. It is expected that there will be charges leading to many prosecutions and one can hope for jail time for those individuals who corruptly betrayed their oath to the United States Constitution to pursue a political vendetta.

A review of what is already known about the plot against Trump is revealing and no doubt much more will be learned if and when investigators go through emails and phone records. The first phase of the illegal investigation of the Trump associates involved initiating wiretaps without any probable cause. This eventually involved six government intelligence and law enforcement agencies that formed a de facto task force headed by the CIA’s Director John Brennan. Also reportedly involved were the FBI’s James Comey, Director of National Intelligence James Clapper, Attorney General Loretta Lynch, Department of Homeland Security Director Jeh Johnson, and Admiral Michael Rogers who headed the National Security Agency.

Brennan was the key to the operation because the Foreign Intelligence Surveillance Act (FISA) court refused to approve several requests by the FBI to initiate taps on Trump associates and Trump Tower as there was no probable cause to do so but the British and other European intelligence services were legally able to intercept communications linked to American sources. Brennan was able to use his connections with those foreign intelligence agencies, primarily the British GCHQ, to make it look like the concerns about Trump were coming from friendly and allied countries and therefore had to be responded to as part of routine intelligence sharing. As a result, Paul Manafort, Carter Page, Donald Trump Jr., Jared Kushner and Gen. Michael Flynn were all wiretapped. And likely there were others. This all happened during the primaries and after Trump became the GOP nominee.

Read more …

I don’t see any common ground here that could lead to a solution. The country’s split right down the middle.

Theresa May Accuses Labour Of Dragging Its Heels In Brexit Talks (Ind.)

Theresa May has accused Labour of dragging its heels in the bid to find a cross-party compromise to deliver Brexit, even before the talks resumed after Easter. “The discussions with Labour have been serious but had also been difficult in some areas, such as in relation to the timetable for the negotiations,” the prime minister told her cabinet. No 10 fears Jeremy Corbyn does not share Ms May’s desire to avoid next month’s European parliament elections – which would require an agreement within days. The criticism is striking because it is the first time the government has turned on Labour since approaching the opposition three weeks ago.

Until now, it has been Mr Corbyn’s party that has blamed the prime minister for the lack of progress, accusing her of refusing to shift on her red lines – in particular, membership of a customs union. The cabinet discussion took place even before the talks resumed on Tuesday afternoon – but after a failure to hold any meaningful negotiations last week. Ms May’s spokesman told journalists: “The PM said the discussions with Labour had been serious, but had also been difficult in some areas, such as in relation to the timetable for the negotiations. “The PM said that the government’s position was that progress needed to be made urgently as it was vital to deliver on the result of the referendum and for the UK to leave the European Union as soon as possible.”

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They knew that before agreeing to the talks.

Labour Says Theresa May Unwilling To Offer Key Brexit Concessions (G.)

Labour has accused Theresa May of failing to offer any substantive changes to her Brexit deal in cross-party talks, as Downing Street’s hopes of a breakthrough in time to avoid taking part in European parliamentary elections waned. Brexit talks resumed on Tuesday between a team of ministers and shadow ministers. But Labour sources said the government team again appeared unwilling to countenance changes to the political declaration, which sets out the UK’s future relationship with the EU. Instead, ministers offered alternative ways of giving reassurance about the issues Labour has raised, such as on environmental standards and workers’ rights, including through redrafting the withdrawal act implementation bill (WAB) and tweaking separate planned government bills.

Downing Street continues to insist that it hopes to secure parliamentary ratification of a Brexit deal in time to avoid the UK having to participate in next month’s European parliament elections. The government has been considering tabling the WAB as a way of breaking the Brexit deadlock, but Labour has rejected the idea. “There’s a sequence; you have got to start with a different deal,” said a source. After the talks, Jeremy Corbyn blamed the government’s refusal to compromise on central issues such as membership of a customs union for the failure to make significant progress. “We’ll continue putting our case but quite honestly there’s got to be change in the government’s approach. They cannot keep on just regurgitating what has already been emphatically rejected three times by parliament, there’s got to be a change,” Corbyn said.

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They should get Theresa May and Boris Johnson cancelled. Hypocrites.

UK MPs Campaign To Have Donald Trump’s State Visit Cancelled (G.)

Theresa May has been criticised for allowing Donald Trump to make a state visit in June for D-day commemorations, with MPs orchestrating a campaign to stop the US president addressing parliament. Labour said it “beggars belief” that the government is offering the red-carpet treatment to Trump given his attacks on British and American values. Backbenchers began gathering signatures for a petition aiming to force the cancellation of the trip. The three-day trip starting on 3 June was confirmed by Buckingham Palace and the White House on Tuesday. The initial invitation was extended soon after Trump took office but a planned state visit in 2018, with all its pomp and ceremony, was downgraded to an official visit amid security concerns.

This time, Trump is likely to dine with the Queen, attend discussions with May in Downing Street and join an event in Portsmouth to mark the D-day landings. No 10 said the D-day event would be “one of the greatest British military spectacles in recent history” and would include a flypast of 26 types of RAF aircraft and at least 11 Royal Navy ships in the Solent. May said the visit would emphasise that the UK and US “have a deep and enduring partnership that is rooted in our common history and shared interests”. “We do more together than any two nations in the world and we are both safer and more prosperous because of our cooperation,” May said. “The state visit is an opportunity to strengthen our already close relationship in areas such as trade, investment, security and defence, and to discuss how we can build on these ties in the years ahead.”

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Promises to be a good series. But who will pay attention?

The Revelations of WikiLeaks: No. 1 (CN)

WikiLeaks was founded in 2006, but it was the April 5, 2010, publication of “Collateral Murder” that made the whistleblower-publisher a world-wide phenomenon, attracting admirers and enemies. WikiLeaks wrote of the film: “The video, shot from an Apache helicopter gun-sight, clearly shows the unprovoked slaying of a wounded Reuters employee and his rescuers. Two young children involved in the rescue were also seriously wounded.” WikiLeaks noted that Reuters had unsuccessfully attempted to gain access to the video through the Freedom of Information Act in the years after the strike. The day after the release of the footage, The New York Times described WikiLeaks as a once-fringe website that had moved into the big time.

“The site has become a thorn in the side of authorities in the United States and abroad,” it said. “With the Iraq attack video, the clearinghouse for sensitive documents is edging closer toward a form of investigative journalism and to advocacy.” Before 2010 WikiLeaks received a few high-profile journalism awards. But in the years since the publication of the video, it has received a slew of honors, including The Sam Adams Award for Integrity. On April 16, WikiLeaks announced a fresh award for its founder, Julian Assange, even as he remains isolated in a London prison. “Collateral Murder” was one of the most prominent releases sourced from then-Army intelligence analyst Chelsea Manning, who served seven years in a military prison as a result.

Manning, who had access to the video, having a Top Secret clearance, first offered the video to The New York Times and The Washington Post, which both turned her down. Manning then turned to WikiLeaks. Manning described the events that led up to her decision to submit the footage to the press in leaked audio of her testimony during her 2013 court-martial. She said Reuters’ inability to get the footage via a freedom-of-information request contributed to her decision to leak it. “The most alarming aspect of the video for me, was the seemingly delight of bloodlust they [the pilots] appeared to have. They dehumanized the individuals they were engaging with, and seemed to not value human life in referring to them as ‘dead bastards,’ and congratulating each other on the ability to kill in large numbers.”

Marjorie Cohn, a legal analyst, is one of those who has described the contents of the footage as evidence of U.S. war crimes. As such she argues that Manning was legally obligated to expose such information. In a 2013 column for Truthout, she cites the Geneva Conventions, the Army Field Manual and the Uniform Code of Military Justice as all setting forth the duty of a service member to disobey unlawful orders. None of the pilots, military officials nor policy-makers have ever been charged or otherwise held responsible for the events shown in the video.

Read more …



Mar 252019
 March 25, 2019  Posted by at 2:50 pm Primers Tagged with: , , , , , , , , , ,  

Yves Klein Leap into the Void 1960


Message to Bernie Sanders, Joe Biden, Kemala Harris, Tulsi Gabbard and the rest of the crew: you can stop asking for campaign donations, because you no longer stand a chance in the 2020 elections. Your own party, and the media who support you, made sure of that. Or rather, the only chance you would have is if you guys start another smear campaign against your president, and I wouldn’t recommend that.

I don’t want to start another Lock Her Up sequence, that’s too ugly for my taste. But three parties in this No Collusion disaster must be held accountable: US intelligence, the Democratic party, and the media. You can’t just let it go, too much water under the bridge. No can do. “The Democrats need to move on”, a recent ‘soft line’, is not good enough. They must be held to account.

Bill Barr can investigate the FBI and DOJ, but the obstacles there are obvious: investigating the investigators. The Democratic party would mean going after individuals, but sure, let’s see what Loretta Lynch, Debbie Wasserman-Schultz and Maxine Waters have to say for themselves and take it from there, before you get to Hillary. The media, though, is something else altogether.

Freedom of the press, and freedom of opinion, is one thing. Conducting a 2-year+ smear campaign against your own president is another. So what does US law say about this? Let’s hear it. Since Trump made Bill Barr the new Attorney General, Barr is instrumental in answering these questions. Is it a smear campaign? Is that acceptable? Is it legal? Asking for a friend.

Not a soul could blame me if I were to gloat because what I’ve said since the 2016 elections has been proven: there is no collusion between ‘the Russians’ and Donald Trump and there never was. But I don’t feel much like gloating because 1) it’s old news and 2) this tale is far from over. The media, and the Democrats, are not going to cave in, because they have nowhere left to ‘cave into’.

The biggest shame, I think, is not that the media will just keep doing what they have, but that a remnant, a residue of all the made-up narratives will remain in their audience’s minds, long after Robert Mueller has said it was all lies all that time. That the public will say: there’s been so much, surely some of it must be true?! The power of repetition.


The same media that has spun the collusion theme all this time will simply continue doing what it’s done, just perhaps without using that term -and not even that is sure. Don’t let’s forget, and I’ve said this 1000 times, that while there is a dose of genuine hatred of their own president involved, and some political issues, most of all it’s about their business model. Trump scandals mean readers and viewers. And money.

Because of that, or at least partly because of it, I would seriously like to ask what the odds are of putting Rachel Maddow behind bars. How many lies can you tell, and how often can you repeat them, about anyone, but certainly about your President, before someone calls you on it? Trump can’t really defend himself, or couldn’t as long as Mueller was busy, but this can’t be.

Does the fact that you work for the media protect you to the extent that you can just say anything? And Maddow of course is just an example, albeit an extreme one, but the same goes for CNN, New York Times et al. What freedoms do you have as a journalist? And at what point are you no longer a journalist at all? Who decides that?

BuzzFeed said Mueller was in possession of evidence that Trump directed Michael Cohen to lie to Congress. Mueller himself had to discredit that. The Guardian’s Luke Harding wrote a #1 NYT bestselling book called “Collusion” before writing an article with Dan Collins claiming that Manafort had met with Assange multiple times in London.

Not a word of that was true. But Harding And Collins and their editor still work at the Guardian, and no apologies or corrections were ever issued. And at some point you have no choice but to ask: where does it stop? Where do we draw the line? Can anyone who labels themselves a journalist and/or anyone employed by MSM, say anything they want? From sources:

The nonpartisan Tyndall Report pegged the total amount of time devoted to the story on the evening newscasts of ABC, CBS and NBC last year at 332 minutes, making it the second-most covered story after the Senate confirmation hearings of Supreme Court Justice Brett Kavanaugh.

According to a count by the Republican National Committee released Sunday, The [Washington] Post, The New York Times, CNN.com and MSNBC.com have written a combined 8,507 articles [since 2017] mentioning the special counsel’s investigation [into nonexistent collusion], some 13 articles a day. The cable news networks, particularly CNN and MSNBC, have added hundreds of hours of discussion about the topic, too.

And they wrote many more in 2016 as well. They were on a mission. Tyler Durden adds:

Mueller’s 40 FBI agents issued over 2,800 subpoenas, executed “nearly 500 search warrants,” and “obtained over 230 orders for communication records. They also issued 13 requests to foreign governments for evidence and interviewed approximately 500 witnesses.

All that time, and all those resources, dedicated to a figment of the imagination, invented out of this air to derail a presidential election and a presidency. Where do we think these people see their country go? I must admit I’m not sure about that one. But I see Bernie Sanders on the anti-Trump wagon, and AOC and Tulsi trying to get on, and I think: please don’t do that, it doesn’t go anywhere.

I’ve called for a second special counsel many times, and I can’t imagine there won’t be one, and as much as I think it’s desperately needed, it’s obvious at the same time that it can only divide the nation further.

There was a reason Trump was elected: people had gotten sick of what was there before, of what Republicans and Democrats had to offer. And there is absolutely nobody in either party who addresses that issue. In other words, there’s still nobody who is listening to those people. So they tune into Rachel Maddow and her kind of ‘reporting’.

Looks like Bill Barr will be badly needed. And that to restore the credibility of US intelligence, he will need to clean up the FBI and DOJ and get rid of all those who’ve taken part in the collusion debacle. A formidable task. I’d suggest he start with Maddow et al and take it from there. Find out who feeds the media their fantasy stories.

Oh, and now that collusion’s off the table, free Julian Assange. Let Robert Mueller show he’s not as much of a coward as he looks until now. To that end, let him swallow the Guccifer 2.0 nonsense as well. That Rachel Maddow makes things up from scratch, doesn’t mean Special Counsels should do that too. Mueller knows exactly what this is about.

A friend (not exactly a Trump fan) mailed me last night saying this was never a witch hunt. And I’m thinking: maybe that depends on how you define it. Here’s one definition: “an unforgiving, evidence-scant campaign against a group of people with unpopular views.” Not too far off, is it?

Time for spring cleaning, Bill Barr.



Mar 252019
 March 25, 2019  Posted by at 10:19 am Finance Tagged with: , , , , , , , , , , , , , , ,  

Margaret Gillies Charles Dickens 1844


We Should All Be Celebrating The Collapse Of Hillary’s Big Lie (NYPost)
Rendition Plane, Increased Police Presence Raise Fears for Assange (Vos)
Russian Military Officials Arrive In Venezuela (G.)
‘Time’s up, Theresa’, Sun Newspaper Tells May (R.)
Tory MPs Threatened With General Election If They Defy Theresa May (Ind.)
Brexiters Pile On Pressure As May’s Deal Drifts Away (G.)
The European Union Has Bigger Problems To Deal With Than Brexit (G.)
Global Stocks Tumble As Bond Markets Sound US Recession Warning (R.)
Man Stole $122m From Facebook And Google By Sending Them Random Bills (BB)
Boeing To Brief Pilots, Regulators On Return Of 737 Max To Service (R.)
Erdogan Moots Renaming Istanbul’s Hagia Sophia A Mosque (AFP)
Despite Lawsuits, Bayer Boss Calls Monsanto Takeover ‘A Good Idea’ (AFP)



So many opinions on Mueller report. Picked this one because it’s still claiming that “Yes, Russians tried to tip a presidential election..”

That “info” comes from the same US intelligence agencies that have been fully discredited now.

We Should All Be Celebrating The Collapse Of Hillary’s Big Lie (NYPost)

Stick a fork in impeachment. It’s dead. Victory doesn’t get any sweeter for the winners. Or more important for our country. The results of the probe by special counsel Robert Mueller are a tremendous vindication for President Trump and the many millions of Americans who never doubted his innocence. The findings prove, once and for all time, that he won the 2016 election fair and square. Let me repeat the point: It is now a fact beyond any doubt whatsoever that Donald Trump is the legitimate 45th president of the United States. “Hail to the Chief,” this time with feeling. The great news of that settled truth is not limited to Republicans and Trump supporters. Every American can take comfort in this historic reaffirmation of our nation as exceptional, as the shining city on the hill for all mankind.

Think of it this way: Yes, Russians tried to tip a presidential election, especially through hacking into e-mail systems. They even tried to help Trump. Yet Mueller, after conducting the most exhaustive test ever of election integrity, reached this stunning conclusion: “The Special Counsel did not find that any US person or Trump campaign official or associate conspired or knowingly coordinated” with Russians “despite multiple offers from Russian-affiliated individuals to assist the Trump campaign.” No American — not a single one — took the Russian bait. And that includes every member of the Trump campaign. That is a fact worthy of celebration, for it shows our democracy is strong and our institutions uncompromised.

Other implications of the report’s findings are also enormous. We now know that Hillary Clinton and her supporters misled the country in claiming that the White House was stolen from her. She started the Russia, Russia, Russia hoax and her claims, aided by the Obama White House and magnified by a thoroughly partisan media, set in motion a wild-goose chase. [..] Perhaps there would have been a trade deal with China by now. Perhaps North Korea would have scuttled its nukes if it knew Trump wasn’t going anywhere for at least four years. Those are just some of the actual and potential consequences Clinton set in motion with her false claims.

In a better world, or if she were a better person, she would apologize and publicly acknowledge Trump’s legitimacy. I won’t hold my breath. But until she does, she should be shunned in public life. She has no credibility to speak on any issue or endorse any candidate. She has put the nation through hell all because she lost an election she should have won. Let’s remember, too, that her campaign actually did work with Russians, through FusionGPS and British agent Christopher Steele, to create a fictional scenario about Trump being compromised. Which brings us to today’s Democrats. They bought into Clinton’s Big Lie and built a House of Cards on smoke and mirrors. The collapse is total.

Read more …

Assange should be set free now there’s no collusion. Mueller is still a coward.

Rendition Plane, Increased Police Presence Raise Fears for Assange (Vos)

In four days, it will be a full year since WikiLeaks’ Julian Assange was severed from contact with the outside world by the government of Ecuador. Concern for Assange was heightened as the anniversary approaches after a U.S. Department of Justice jet previously used for the rendition of an accused Russian hacker landed in London on Tuesday and remained there for days, only to return to the U.S. on Saturday. The flight reportedly departed from Manassas, Virginia. WikiLeaks stated via Twitter regarding the flight: “Note that the Edward Snowden DoJ grab team plane N977GA also departed from Manassas, Virginia.”

WikiLeaks tweeted regarding the flight: “What is US Department of Justice jet ‘N996GA’ doing in London? The jet arrived on Tuesday from DC and was last noted rendering alleged Russian hacker Yevgeniy Nikulin to the US last year from the Czech Republic, causing a diplomatic incident with Russia.” Assange’s Twitter account, run by members of his legal team, also tweeted: “Note that the Edward Snowden DoJ grab team plane N977GA also departed from Manassas, Virginia.” In response to the news, Christine Assange said on social media: “This is of urgent and real concern! Under cover of the 24/7 media frenzy on the NZ Mosque shootings. Is the US planning to snatch my son Julian from the London Ecuador Embassy they have been trying to force him from, for a CIA rendition flight?”

While the jet remained in London, WikiLeaks quoted Assange’s lawyers describing an increase of plainclothes British police officers on the ground surrounding Ecuador’s London embassy: “A build up of plain clothes ear-piece wearing operatives around the Ecuador embassy in London in the last two days has been sighted by Julian Assange’s lawyers. There are normally 2-4 plainclothes British operatives present. The reason for the increase is not publicly known.”

Read more …

Russiagate, the sequel.

Russian Military Officials Arrive In Venezuela (G.)

Russian military officials have arrived in Venezuela to discuss equipment maintenance and training, and strategy, an official in Caracas has said. The statement came after a Russian-flagged cargo plane and an airliner were spotted at Maiquetia airport outside Caracas guarded by a contingent of Venezuelan national guardsmen. A Venezuelan official said the aircraft arrived this weekend as part of ongoing military cooperation between the two allies. Flightradar24, a flight-tracking site, showed the flight path on Saturday of what it listed as a Russian air force plane, apparently headed to Caracas while flying across the Caribbean.

Javier Mayorca, a Venezuelan journalist, tweeted that a Russian cargo plane with military equipment also arrived in Caracas on Saturday. He said around 100 Russian soldiers led by General Vasily Tonkoshkurov, head of the mobilisation directorate of Russia’s armed forces, disembarked along with about 35 tons of equipment. A picture of a Russian-flagged aircraft posted on social media showed men in uniform clustered around it on the tarmac.

Read more …

Wonder about the role of the media in the US? Try this one on too.

‘Time’s up, Theresa’, Sun Newspaper Tells May (R.)

Rupert Murdoch’s The Sun newspaper said in a front page editorial that Prime Minister Theresa May must on Monday announce she will stand down as soon as her Brexit deal is approved and the United Kingdom has left the European Union. “Time’s up, Theresa,” the newspaper said on its front page. The newspaper said her one chance of getting the deal approved by parliament was to name a date for her departure.

Read more …

Cut it out! You’re offending your entire nation.

Tory MPs Threatened With General Election If They Defy Theresa May (Ind.)

Cabinet ministers are openly at war over solving the Brexit crisis, after MPs were threatened with a general election if they try to force through an alternative to Theresa May’s deal. As claims of a plot to topple the prime minister were denied by potential replacements, a bid by the Commons to seize control this week was dramatically torpedoed by the Brexit secretary. Stephen Barclay vowed that any softer exit plan that crossed Tory red lines would be rejected, warning MPs tempted to vote for it that “the risk of a general election increases”. Extraordinarily, just moments earlier, the chancellor Philip Hammond had urged MPs of all parties to “get themselves together in a room” to find a solution, admitting Ms May’s deal is all but dead.

Mr Hammond also gave a big boost to the campaign for a fresh Brexit referendum – a day after up to a million people packed London in support – describing it as “a perfectly coherent proposition” that “deserves to be considered”. Meanwhile, a parade of Brexiteer Tories drove to the door of Chequers, the prime minister’s country retreat, some to urge her to set a timetable for quitting. However, as both the mooted candidates to take over as caretaker – David Lidington and Michael Gove – rushed out denials of interest, no cabinet coup appeared imminent. Despairing Tories feared the prime minister would not listen to pleas that the only way to save her deal is to fall on her sword immediately afterwards. Others believe it would fail to make the difference anyway.

Read more …

Hope they all dance together naked around Stonehenge at night. Not that I have to see them do it.

Brexiters Pile On Pressure As May’s Deal Drifts Away (G.)

Theresa May’s prospects of getting her Brexit deal through parliament this week dramatically receded on Sunday night after a high-stakes summit with Boris Johnson and other leading hard-Brexiters at her country retreat broke up without agreement. Tory rebels present said that the prime minister repeated “all the same lines” about her deal and that nothing new emerged during the three-hour meeting, at which Jacob Rees-Mogg, Iain Duncan Smith and Dominic Raab were also present. One source said May was told by some of those present, including Rees-Mogg, that to get her Brexit deal through she needed to spell out when she was quitting No 10 so that another prime minister could lead the next phase of EU trade negotiations. But the prime minister did not respond to the suggestion.

The talks took place amid reports of an imminent coup to remove the prime minister – claims which were forcefully denied by Michael Gove, David Lidington and Philip Hammond. But before a critical cabinet meeting on Monday morning, May remained in a perilous position, with no breakthrough and Downing Street only able to tell reporters that she had discussed “whether there is sufficient support” to hold a meaningful vote this week. A front-page editorial in Monday’s Sun urges May to quit, with the headline “Time’s Up, Theresa”, saying she should announce that she will stand down as soon as her Brexit deal is approved and the UK leaves the EU. MPs are due to vote on Monday night on whether to take control of the parliamentary agenda and hold a series of indicative votes on alternative options, including a customs union and a second referendum.

Read more …

Lagging industries.

The European Union Has Bigger Problems To Deal With Than Brexit (G.)

As the clock has ticked down towards Brexit, the state of the UK has attracted even more attention than normal. Every scrap of official data and every survey of business opinion have been pored over by leavers and remainers alike. Much less attention, understandably enough, has been paid to what is happening in the rest of the European Union, where the recent news has been poor. The frustration of the leaders of the other 27 EU countries towards Theresa May is that Europe has plenty of issues that need addressing, with Brexit not even the most serious of them. The EU’s biggest problem is that its economic model has aged alongside its population. Europe has plenty of world-class companies but, unlike the United States, none of them were set up in the past 25 years. In Europe’s golden age, Volkswagen was a rival to Ford, and Siemens could go toe to toe with General Electric.

But there is no European Google, Facebook or Amazon and in the emerging technologies of the fourth Industrial Revolution, such as artificial intelligence, Europe is nowhere. China is making faster progress than Europe in the development of machine learning and has companies that pose a threat to the giants of Silicon Valley. That’s why China rather than Europe is the main target for Donald Trump’s tariff war. When plans for the euro were being drawn up 30 years ago, the assumption was that the single currency would make the single market work more efficiently and so generate faster growth. It hasn’t happened. The performance of the eurozone countries has got worse not better, but so much political capital has been invested in the monetary union project that there is an unwillingness to accept as much.

Read more …

Wait. US or EU?

Global Stocks Tumble As Bond Markets Sound US Recession Warning (R.)

Investors ditched shares on Monday and fled to the safety of bonds as risk assets fell out of favor on growing fears of a U.S. recession, sending global yields plunging. The gloomy mood was expected to spread across Europe and U.S. markets, Spreadbetters showed, with London’s FTSE futures off 0.3 percent and E-minis for the S&P 500 skidding 0.5 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.5 percent to a one-week trough in a broad equities sell-off in the region. Japan’s Nikkei hit a five week low after diving 3.1 percent for its largest one-day percentage fall since late December. South Korea’s Kospi index declined 1.7 percent while Australian shares faltered 1.1 percent. Chinese shares was also in the red with the blue-chip CSI 300 index down 1.4 percent.

Concerns about the health of the world economy heightened last week after cautious remarks by the U.S. Federal Reserve sent 10-year treasury yields to the lowest since early 2018. U.S. 10-year treasury yields were last 1.9 basis points below three-month rates after yields inverted for the first time since 2007 on Friday. Historically, an inverted yield curve – where long-term rates fall below short-term – has signaled an upcoming recession. “The bond market price action is an enormous blaring siren to anyone trying to be optimistic on stocks,” JPMorgan analysts said in a note to clients. “Growth, and bonds/yield curves, will be the only thing stocks should be focused on going forward and it’s very hard to envision any type of rally until economic confidence stabilizes and bonds reverse,” it added.

Read more …

“He’s agreed to forfeit about $50m. It’s not clear what’s happened to the other $73m..”

Man Stole $122m From Facebook And Google By Sending Them Random Bills (BB)

Last week, Evaldas Rimasauskas of Lithuania plead guilty to US wire fraud, aggravated identity theft, and money laundering charges, admitting that he had stolen $99m from Facebook and $23m from Google between 2013 and 2015. Rimasauskas’s grift was pretty bold. He merely sent Google and Facebook invoices for items they hadn’t purchased and that he hadn’t provided, which the companies paid anyway. The invoices were accompanied by “forged invoices, contracts, and letters that falsely appeared to have been executed and signed by executives and agents of the Victim Companies, and which bore false corporate stamps embossed with the Victim Companies’ names, to be submitted to banks in support of the large volume of funds that were fraudulently transmitted via wire transfer.”

He also spoofed emails that appeared to come from corporate execs. Apparently, no one checked first to see if these corresponded to invoices/POs that had been issued within the companies. Rimasauskas was pretending to be the giant Taiwanese hardware manufacturer Quanta Computer Inc, and had registered a company in Latvia with the same name. He’s agreed to forfeit about $50m. It’s not clear what’s happened to the other $73m, but Rimasauskas was a prolific and baroque money-launderer who squirreled cash away in Cyprus, Lithuania, Hungary, Slovakia, and Latvia. Google has said that “We detected this fraud and promptly alerted the authorities. We recouped the funds and we’re pleased this matter is resolved.”

Read more …

A billion dollar party?!

Boeing To Brief Pilots, Regulators On Return Of 737 Max To Service (R.)

Boeing Co said it invited more than 200 global airline pilots, technical leaders and regulators for an information session on Wednesday as it looks to return the 737 MAX to commercial service. The meeting is a sign that Boeing’s planned software patch is nearing completion, though it will still need regulatory approval. Over the weekend, Ethiopian Airlines executives had questioned whether Boeing had told pilots enough about “aggressive” software that pushes the plane’s nose down, a focus of investigation into a deadly crash in Ethiopia this month that led to the global grounding of 737 MAX jets. The informational session in Renton, Washington on Wednesday is part of a plan to reach all current and many future 737 MAX operators and their home regulators to discuss software and training updates to the jet, Boeing said in a statement.

Read more …

World no. 1 symbol of secularism and peace between religions. Kemal Ataturk himself made it that.

Erdogan Moots Renaming Istanbul’s Hagia Sophia A Mosque (AFP)

Turkish President Recep Tayyip Erdogan on Sunday mooted the possibility of renaming Istanbul’s Hagia Sofia museum as a mosque, in comments during a television interview. Asked whether the entrance fee to the city landmark might be waived, he said: “It’s not impossible… but we would not do it under the name ‘museum’ but ‘Hagia Sophia mosque’.” He added: “Tourists come and go at the Blue Mosque. Do they pay anything? … Well, we will do the same with the Hagia Sofia.” Erdogan, who is a former mayor of Istanbul, is campaigning for votes for his Justice and Development Party (AKP) ahead of municipal elections on March 31.

The former church and mosque, now a museum, often sparks tensions between Christians and Muslims over Islamic activities held there including the reading of verses from the Koran or collective prayers. Its secular status allows believers of all faiths to meditate, reflect or simply enjoy its astonishing architecture. But calls for it to serve again as a mosque have caused anger among Christians and raised tensions between historic foes Turkey and Greece, both NATO members. Greek Prime Minister Alexis Tsipras visited the Hagia Sophia in February. “You can feel the burden of history here,” he told AFP. Greece has repeatedly expressed concern over efforts to change the museum’s status.

[..] The Hagia Sophia was first built as a church in the sixth century under the Christian Byzantine Empire as the centrepiece of its capital Constantinople, today’s Istanbul. Almost immediately after the conquest of Constantinople by the Muslim Ottomans in 1453, it was converted into a mosque before becoming a secular museum in a key reform of the new post-Ottoman Turkish authorities under Mustafa Kemal Ataturk in the 1930s. Ataturk was the founder of the Turkish republic.

Read more …

“Bayer has made one of takeovers w/greatest cap destruction in econ history. Once biggest comp in Germany, Bayer has lost €33.6bn in mkt cap since final takeover of Monsanto. W/ €59.3bn now #6 in Germany, valued ONLY 1.2* book.”

Despite Lawsuits, Bayer Boss Calls Monsanto Takeover ‘A Good Idea’ (AFP)

The boss of German chemicals giant Bayer insisted Sunday its multi-billion dollar takeover of Monsanto was a “good idea”, despite huge legal costs piling up over its Roundup weedkiller. “The Monsanto acquisition was and is a good idea,” Werner Baumann told newspaper Frankfurter Allgemeine Sonntagszeitung, when asked if he would have changed his mind about buying the US group if he could. Bayer bought Monsanto for $63 billion but the deal has turned out to be plagued with other massive costs. Just two months after the acquisition was completed, Monsanto lost a case to a school groundskeeper suffering from terminal non-Hodgkin’s lymphoma, who had sued the company over the glyphosate weedkillers Roundup and Ranger Pro.

Monsanto was initially ordered to pay $289 million to Johnson, before the damages were reduced to $78.5 million. Bayer has filed an appeal. The company suffered a new set back this month as a US jury ruled that Roundup was a “substantial factor” in another case brought by an amateur gardener who was suffering from cancer. It now faces a total of 11,200 US cases over Roundup and its active ingredient glyphosate, a herbicide key to Monsanto’s business model that has come in for intense scrutiny around the world. Werner insisted the acquisition of Monsanto was carried out after careful due diligence.

Bayer has also pointed to findings from regulators around the world, especially in advanced economies like the US, Europe and Canada, and reams of scientific studies as proof of the safety of its product. “Regulatory authorities around the world consider glyphosate-based herbicides as safe when used as directed,” the group has argued, highlighting “800 rigorous studies” of glyphosate’s effects. The World Health Organization’s International Agency for Research on Cancer found in 2015 that glyphosate is “probably carcinogenic,” although the European Food Safety Authority and the European Chemicals Agency have not issued similar judgments. Since the Monsanto takeover was completed, Bayer’s stock has shed almost 40% of its value.

Read more …

Dec 112018
 December 11, 2018  Posted by at 8:45 pm Primers Tagged with: , , , , , , , , , , ,  

Wilhelm Trübner A Gorgon‘s head 1891


The news still isn’t the news, and I’m getting afraid it never will be again, because not the news just simply sells so much better than plain old real events. Maria Butina suddenly popped back into the public eye, because she was either charged with something or confessed to it. And I’m thinking, excuse me, but that poor girl has been kept in isolation for how long now? And for what reason exactly?

I vividly remember thinking that when she first became ‘news’ for ‘infiltrating’ the NRA, for which there were plenty cute pictures taken, I remember thinking she would have been 22 or 23 years old when as a super- devious Russian redhead she allegedly penetrated the trillion dollar NRA, and the trillion dollar Republican Party, and the Trump campaign, which according to some people is now worth negative $1 trillion.

If any of said organizations allow for a 22-year old to take all of their most secret and damning secrets and send them to her alleged puppet master Vladimir Vladimirovich, I say they deserve everything they’re getting. But it IS the sort of thing that if you want to report it like it’s actual news, you sure need to be convincing, you need proof, that sort of thing, not the anti-Putin innuendo US media rely on as their main standard today. Butina with no proof is just a nice by now 30-year old girl who happens to be Russian.

As for the Trump campaign having a negative $1 trillion value, I derive that from all the people who’ve once again, after a handful Mueller tidbits, started saying the Donald will be impeached any moment now, and many around him will go to jail for decades. You know, I can read too, and that’s not what I see. Much of what I see comes down to the reasoning that Trump has not yet been impeached as President because .. he is the President.

Yes, that is pretty funny, but it’s not humor beyond my abilities, and I’m not a comedian by trade. We’re still, even after those Mueller bits, stuck with Papadopoulos who’s been framed and went to jail for 2 weeks for it (shame on Mueller for that, deep deep shame!), there’s Cohen who lost his tracks in between lying for Trump and lying about Trump, and Manafort, a thirteenth wheel on a wagon of which there are dozens in DC, fixers and handlers.

You tell me why Manafort faces years in jail while Rahm Emanuel became mayor of Chicago. But if you’d actually want to explain, I suggest you prepare well, maybe talk to a few lawyers in the process. Washington attracts shady characters like dung beetles to horse shit and honey bees to Mountain Dew, and only a special counsel would ever think of picking them off one by one if he can’t find any of the actual crimes that he was appointed for to find. Cue: Rahm Emanuel.


Meantime my pal in arms Jim Kunstler thinks Michael Flynn is laying low as Mueller whoops his ass because he can, only to hit back at Mueller as soon as he’s freed from what are at best shaky allegations. Talking to a Russian is not a crime, not even, or even especially, when you’re the security adviser to the next president.

Michael Flynn’s real suspicious job was advising Turkey on security issues, but then that’s not what Mueller targeted him for. So yeah, let Flynn rise. And once again, don’t let’s forget that he said when the whole circus began, that he saw no way he could defend himself against anything Mueller might have thrown at him, that his entire family was on the verge of bankruptcy.

“But you talked to a Russian!” say the news media. Cue mushroom clouds in the remote background. But don’t you see, Trump is a criminal with decades of crimes under his belt, and all of his family are too! Look, I don’t know these people, and I’m fine not knowing them, not my cup of tea, but how much time did any of them spend behind bars so far?

And now they would have to go to jail just because Donald was elected president and the DOJ appointed a friendly ex-FBI head special counsel on the basis of a dossier paid for by his political opponents? To what extent does that spell justice to you? Yes, feel free to cue Rahm Emanuel again.

See, if certain people can be sent to jail because they rise too high in certain circles that don’t want them to disturb the power inherent in their sphere, while other operatives from the exact same mold though perhaps another political affiliation, are nominated to lofty and lucrative careers and positions, isn’t there something awry?

Are any of them perfectly innocent? Hell no, but then if they were, they wouldn’t be in the positions they’re in, the very positions that allow Robert Mueller to target them. From that point of view, it obvious it’s just a little power game played out in front of your eyes, you who have nothing to do with it but think you’re supposed to have an opinion on it.

Is Donald Trump a worse and bigger criminal than George H.W. Bush was? One half of America can answer that in no time flat. The other is thinking they wouldn’t be so sure. How many people has the Donald condemned to death so far? And he’s already about half way through the time Bush41 spent in the White House.

Perhaps it’s not about who’s a criminal, but about who’s the prosecutor. And with Mueller’s role in the sordid Whitey Bulger tale, and his even more sordid testimony in the Iraq WMD fantasies that led to millions of legalized murders celebrated as victory by both Washington and the US media, which kettle is blaming which pot here?


But hey, I’m ready to be corrected. And it’s by no means just the US that feels twisted these days, either. How about French president Emmanuel Macron, who hadn’t addressed his people live for 10-12 days as the Yellow Vests protests just got worse and more violent by the day, and then yesterday decided to make his long awaited response to them through a pre-recorded video? Honestly, how far removed from reality can one be?

The only answer Macron has to the thousands of people who want him out, and who have been willing to express that opinion in 4 consecutive weekends, is money. He thinks if he gives them €100 a month extra, and some tax breaks, they’ll let them continue on his little Napoleon trip. Well, if they do, we’ll know who they are. But are they? I don’t think Macron counts on that.

And then, as Macron increasingly retreats into his little palace(s), cue Marie Antoinette, only to communicate with the unwashed masses who want him gone through pre-scripted and recorded promises of crumbs off his table in exchange for no power at all, British PM Theresa May reacts to her latest and ostensibly worst -though it’s hard to keep track- defeat by … fleeing the country.

That’s how its ‘leaders’ rule Europe these days. Angela Merkel says she’s gone, though she wants to be Chancellor until 2021 (that way no-one can hold her responsible for anything), Theresa May hops on a plane to Europe to grovel some hopelessly more in her already defeated stance.

And Macron has his servants shove crumbs off his table, a gesture that still costs him more than everything Salvini and Di Maio wanted to do in Italy which got them whistled down by Brussels. C’mon, who still believes in the EU? Everyone’s running away from it.

If Macron must hide from his own French people, how can he reform the EU? If May must flee the UK and go to the EU to get a Brexit deal, what’s her authority back home where 50% voted against that same EU?

And if Merkel can only remain in charge by relinquishing her power, who exactly’s going to run Europe? It’s kind of like the same question as for the US. Who’s going to run it? Not Trump, if Mueller and the Democrats have any say although they lost the election. Not Hillary, says about everyone else.


We all tend to think that these things are normal and eternal. Just politics. But all the usual suspects appear to be under siege. In Europe, France, UK, Germany are shaking heavily. Italy’s already overboard. That’s the biggest 4 EU members. That’s the EU. No certainties, no future, though the EU itself will never admit it, and instead just push for more EU.

And what’s certain politically in the US anymore? Trump has eviscerated the entire GOP, and I’m not saying that’s a bad thing. The Democrats killed off Bernie Sanders to allow Hillary to continue her dead before arrival power grab. She came she saw she lost.

My point, I think, is that political strongholds are being defeated everywhere at the same time. And when that happens, there’s always a reason for it. I think that reason can be found in the fact that the global economy is rumbling and crumbling as we speak, with politics and economics acting as precursors for one and other.

Like, Macron can only save his political ass by violating the EU budget terms he just chided Italy for. Merkel can only save her legacy by creating a situation she’s no longer responsible for. And Theresa May would be well advised, now that she’s on the continent, to simply stay there and let Britain figure things out without her.

The US won’t and can’t be so lucky. We’re still up for much more, marathon more, of Trump vs Mueller, and there will be many more courts and judges who have to speak on all of it before there’s anything even remotely resembling a conclusion. Because the whole Mueller circus -reluctantly- threatens to open up a Pandora swamp that’s been DC’s lifeblood forever.

Yeah, you got your Flynn and Manafort, but you also got your Podesta brothers. Yeah, there’s the Trump Foundation, but there’s also the Clinton Foundation, and Uranium One. Who’s worse? Good one!

Both things should be investigated, it shouldn’t just be Trump and Mueller, Hillary and the DNC and Comey etc etc also must be under the microscope. Or America will forever lose its faith in democracy. Not that there’s much of it left, mind you, but hey, at the very least it’s the thought that counts.

Bottom line: it all appears to be about local, domestic, national politics, but don’t be deceived: the global economy is tanking, and all of the political mayhem on all these levels is just a derivative of that. The dinosaurs want to live another day.

None of which is going to make your situation any better, but who knows, you just might feel better about it for a bit. Until you don’t.



Nov 272018
 November 27, 2018  Posted by at 4:33 pm Primers Tagged with: , , , , , , , , , , , ,  

Berthe Morisot The old track to Auvers 1863


Our politicians and media are not going to allow us to see Russia, and any incidents the country can be linked to, in any other way than black and white, in which we are the good party and they are the black, evil and guilty ones. So we’ll have to do that ourselves.

More than enough has been said about why NATO should have been dismantled when the reason for its existence, the Soviet Union, was dissolved, but nobody listened and NATO has kept expanding eastward and demanding more money, more members, more weapons.

NATO demands an enemy, and their chosen enemy is Russia. This has nothing to do with anything Russia has done or is doing at the moment. We can only hope that people are willing to accept that simple fact. And not passively go along with the flow of badmouthing and smear that decides what our picture of the country is.

Russia ‘invaded’ Crimea? Russia ‘downed’ MH17? Russia sent two hapless and inept blokes to kill the Skripals? Russia launched an unprovoked attack on three Ukrainian vessels in the Sea of Azov? Russia colluded with the Trump campaign against Hillary Clinton? And collaborated with Julian Assange to make that happen?

What all these allegations have in common is that there is no evidence any of them are true. Oh, and that nobody’s really trying to prove them anymore. Because you’ve already accepted them as gospel.


90% or so of Crimeans voted to be part of Russia, after the west had tried their hand at regime change in Kiev, with John McCain and Victoria Nuland opening the gates for various neo-nazi groups to enter government.

The MH17 investigation is led by the Netherlands, the main victim. As I told Jim Kunstler in our recent podcast, you try and find a detective story where the main victim leads the investigation. Aided by Ukraine, one of the suspects, but not Russia, the designated suspect from the get-go. We’re over 4.5 years later and there is no proof -not that that keeps anyone from assigning blame.

The Skripals were allegedly attacked with the most deadly nerve gas ever, and allegedly survived. They simply haven’t been heard from anymore. There are images of two alleged Russian spies who went out of their way to be filmed and photographed in Salisbury, but their ineptitude doesn’t rhyme with Russian secret service in any way, shape or form. The west tries to make it sound like Comedy Capers, and that just gives the west away.

As for the ‘attacks’ the other day, the Guardian of all outlets explains: “Since the completion of the bridge over the Kerch strait, Moscow has demanded that Ukrainian ships not only give notice of their intention to transit the strait but request permission, a change that Kiev has rejected. According to western diplomats, the dispatch of the three ships was intended to assert freedom of navigation..”

Sure, you can claim that Russia has no right to ask Ukraine to ask for permission to the Sea of Azov, but then Kiev should have protested that demand, not send three armed vessels to ignore the demand and sail through anyway. That is called provocation.

And Ukraine provoking Russia is a bad idea. Unless you’re NATO, and you want Ukraine as a member. And unless you’re the chocolate billionaire who took over the government and now has an approval rating in the single digits with elections coming up in March. Question: how much chocolate do Ukrainians eat?

For Ukraine to enter NATO would be the most flagrant violation against the deal the west made with Gorbachev just prior to the dissolution of the Soviet union to date. And there have been plenty such violations in the past almost 30 years; little wonder that Moscow draws a line.

It’s just that nobody in the west is aware there is such a line. The media have helped politicians, NATO and arms manufacturers in painting a picture of Russia as the evil bogeymen in the east, and there is no counterweight to that picture anywhere in what people read and watch. It doesn’t matter whether the ‘news’ is accurate, because journalists don’t do their jobs to go out and check the facts.


As for the Muller’s unending investigation into Russian collusion with the Trump campaign, we know for a fact that there’s no evidence of any such thing, since Mueller would have been forced to go public with it because it’s such a serious issue; you can’t let treason lie for months or years. And sure, Mueller today fingered Manafort for lying, but that has nothing to do with collusion.

As for Mueller’s Julian Assange allegations, he should be ashamed of himself for accusing someone he knows is barred from defending himself. Mueller can say anything he likes about Assange, and does, and it has no value, Julian has been silenced to an extent that shames us all, but Mueller first.

The problem with Robert Mueller when he uses such tactics is that he loses his credibility, or rather, what he had left after solemnly testifying that Iraq possessed WMD when he was FBI head. The man is incessantly portrayed as America’s straightest arrow, but that just makes you lament the state the country is in. The odds that Trump is the straightest arrow are much higher, and even the Donald himself wouldn’t buy into that one.

As we’re worried about fake news and Facebook and election meddling and what have you, we need to be clear on what that really is. Which is, the worst and most fake news you see every single day comes from those sources that you trust most. This is not just deliberate, it’s highly profitable too. As long as you are gullible enough to keep buying into it. So far, you are.

Whenever you read anything at all about Trump, Russia/Putin and Assange in the major news outlets, chances that it is not objective or properly due diligence researched are far higher than that it is. You have to start out with the idea that what you’re about to read or watch is not true, for the simple reason that the vast majority of it is not; it only exists to serve an agenda and a narrative.

And because reporting what is not accurate makes ‘news sources’ much more money than reporting the truth. In the meantime, though, NATO, US/UK/EU intelligence and the military-industrial complex may be happy, but you should not be. Because you’ve landed somewhere in the middle between Orwell, Huxley and the Matrix. And that’s not going to end up doing you any good. Let alone your kids.

Shake it off, guys. You’re sinking. Information dissemination has become like walking into quicksand. Walking into a pre-processed narrative that deprives you of your ability to think. Not something we should wish upon anyone. But take this from me: you’re already in it, and you need to get out. It’s no longer about trying not to get in, those days are long gone. You’re already there.



Nov 232018
 November 23, 2018  Posted by at 9:53 am Finance Tagged with: , , , , , , , , , , , , ,  

René Magritte Golconda 1953


438 Stocks on the NYSE Plunged 40%-94% from 52-Week Highs (WS)
Margin Debt Plunges, Next Up: Margin Calls (WS)
QE Created Dangerous Financial Dependence, Italy Hooked, Withdrawal Next (DQ)
Bitcoin Price Crash Causes Bankruptcy And Mass Mine Closures (Ind.)
UK’s Poorest Dying Nearly 10 Years Younger Than Rich (Ind.)
MPs Unite To Condemn May’s ‘Blindfold Brexit’ (Ind.)
Yanis Varoufakis: “The EU Declared War And Theresa May Played Along” (NS)
China Bans Millions From Flights As ‘Social Credit’ System Introduced (Ind.)
Google Wants To Data Mine Your Home And Kids’ Bedroom (ZH)
How Do You Give Thanks For Freedoms That Are Constantly Being Eroded? (RI)
CIA Holds ‘Smoking Gun Phone Call’ Of MbS On Khashoggi Murder (Hurriyet)
Comey, Loretta Lynch Subpoenaed To Testify Before Congress (AFP)
Hillary Clinton: Europe Must Curb Immigration To Stop Rightwing Populists (G.)
Clinton, Blair, Renzi: Why We Lost, And How To Fight Back (G.)
Elephant-Sized Mammal Cousin Lived Alongside Dinosaurs (R.)



“It’s barely a correction, technically speaking..”

438 Stocks on the NYSE Plunged 40%-94% from 52-Week Highs (WS)

It’s barely a correction, technically speaking, with the S&P 500 down 9.9% from its all-time closing high, the Dow down 9.2%, the Nasdaq down 14%, and the Russell 2000 small-caps index down 15%. But beneath the surface, there has been some serious bloodletting for many stocks. For example, 438 stocks among the 2,051 or so stocks traded on the New York Stock Exchange (NYSE) have plunged between 40% and 94% from their 52-week highs. This does not include any stocks traded on the Nasdaq. They have their own blacklist.

Those 438 plungers on the NYSE include a bunch of foreign companies trading on the NYSE (some are trading as ADRs). They include lots of companies in the oil-and-gas sector, homebuilders, gold miners, retailers, aluminum and steel makers, a weed company (other NYSE-listed weed companies are only down 30% to 40% and didn’t make this blacklist), financial services firms and banks, including some of the biggest in the world. Here is a brief rundown. Below is the complete list. Note that some of these stocks – such as GE, which is also on this blacklist – have plunged far more from their all-time highs established in prior years.

Read more …

Tempting to bring up Lehman, but if anything it’s starting to feel like Lehman cubed.

Margin Debt Plunges, Next Up: Margin Calls (WS)

There are many ways to use leverage to fund stock holdings, including credit card loans, HELOCs, loans at the institutional level, loans by companies to its executives to buy the company’s shares, or the super-hot category of SBLs, where brokers lend to their clients. None of them are reported on an overall basis. The only form of stock market leverage that is reported monthly is “margin debt” – the amount individual and institutional investors borrow from their brokers against their portfolios. Margin debt is subject to well-rehearsed margin calls. And apparently, they have kicked off. In the ugliest stock-market October anyone can remember, margin debt plunged by $40.5 billion, FINRA (Financial Industry Regulatory Authority) reported this morning – the biggest plunge since November 2008, weeks after Lehman Brothers had filed for bankruptcy:

During the stock market boom since the Financial Crisis, this measure of margin debt has surged from high to high, reaching a peak in May 2018 of $669 billion, up 60% from the pre-Financial Crisis peak in July 2007, and up 117% since January 2012. Since the peak in May, margin debt has dropped by $62 billion (-9.2%). Note the $40.5-billion plunge in October:

In the two-decade scheme of things, the relationship between stock market surges and crashes and margin debt becomes obvious. Back during the dot-com bubble, dot-com stocks, traded mostly on the Nasdaq, included what today are booming survivors like Amazon, barely hangers-on like RealNetworks, or goners like eToys. At the time, these stocks soared by stunning amounts, and people, such as myself, used margin debt, to enhance their returns. When stocks plunged, the margin calls came, and these people had to sell their holdings into an illiquid and plunging market. They ended up selling their best and most liquid stuff first and watched their trash get trashed further. When it was over by October 2002, the Nasdaq had plunged 78%. Over the same period, margin debt plunged 54%.

Read more …

“..who will purchase the roughly €275 billion of government securities Italy is forecast to issue in 2019?”

QE Created Dangerous Financial Dependence, Italy Hooked, Withdrawal Next (DQ)

The Bank of Italy, on behalf of the ECB, has bought up more than €360 billion of multiyear treasury bonds (BTPs) since the QE program was first launched in March 2015. In fact, the ECB is now virtually the only significant net buyer of Italian bonds left standing. This raises a key question, Nowotny said: With the ECB scheduled to exit the bond market in roughly six weeks time, “who will purchase the roughly €275 billion of government securities Italy is forecast to issue in 2019?”

With foreigners shedding a net €69 billion of Italian government bonds since May, when the right-wing League and anti-establishment 5-Star Movement took the reins of government, and Italian banks in no financial position to expand their already bloated holdings, it is indeed an important question (and one we’ve been asking for well over a year). According to former Irish central bank governor and ex-member of the ECB’s Governing Council Patrick Honohan, speaking at an event in London, when the ECB’s support is removed, “the yield on Italian government bonds will be much more vulnerable.”

[..] Perhaps the biggest risk the ECB runs in this latest escalation of tensions with Italy’s populist government is in reminding investors just how much governments in the Eurozone have come to depend on the ECB’s QE program. But it’s not just Italian bonds that are hooked on QE. In the past three years the ECB has spent €512 billion gobbling up German bonds (current 10-year yield: 0.35%); €416 billion on French bonds (10-year yield: 0.76%); €256 billion on Spanish bonds (1.62%); €114 billion on Dutch bonds (0.52%); €72 billion on Belgian bonds (0.83%); €57 billion on Austrian bonds (0.61%), and €36 billion on Portuguese bonds (1.98%).

Read more …

So far, crypto fails to replace whatever it is that is failing.

Bitcoin Price Crash Causes Bankruptcy And Mass Mine Closures (Ind.)

Bitcoin mining operations in the US and China are facing closures after the plummeting price of bitcoin means they may no longer be profitable. The world’s most valuable cryptocurrency is currently trading at around $4,500, having lost almost a third of its value in the space of a week. Bitcoin mining – the process of generating new units of the cryptocurrency by solving complex puzzles – requires vast amounts of electricity to power the computers performing the calculations. This means that the profitability of mining falls when bitcoin’s price drops, and if the price falls too far then operations may no longer be economically viable.

The biggest casualty so far may be the US-based mining firm Giga Watt, which was forced to file for Chapter 11 bankruptcy this week after it was unable to pay debts of around $7 million. “The corporation is insolvent and unable to pay its debts when due,” the filing stated, according to CoinDesk. The majority of bitcoin mining operations are based in China, where electricity costs are some of the lowest in the world. Yet despite the cheap electricity, images and videos of mining operations shutting down in the country have been spreading across social media. Hong Kong-based mining platform Suanlitou announced this week that it was unable to cover electricity fees for a 10-day period in November, according to the South China Morning Post.

Read more …

This is Theresa May’s prime achievement, and it’s hard to see why nobody calls her on it. The application of austerity and the Hostile Environment on Britain is her baby.

UK’s Poorest Dying Nearly 10 Years Younger Than Rich (Ind.)

The poorest groups in society are dying almost a decade earlier than the richest, new research shows, prompting concern that welfare cuts and a rising cost of living are leaving the most vulnerable “out of the collective gain”. The study by academics at Imperial College London revealed the life expectancy gap between the most affluent and most deprived sections of society increased from six years in 2001 to eight years in 2016 for women, and from nine to 10 years for men. Women in the most deprived communities in 2016 lived until an average 79 years old, compared with 87 years in the most affluent group, while for men, the life expectancy was 74 years among the poorest, compared with 84 years among the richest.

The findings, published in the journal Lancet Public Health, also reveals that the life expectancy of England’s poorest women has fallen in the last seven years – having dropped by three months since 2011. Child mortality rates were also considerably higher among deprived communities, with poorer children two-and-a-half times more likely to die before they reach adulthood than their peers from affluent families. The findings show that people in the poorest sectors died at a higher rate from all illnesses – but that a number of diseases showed a particularly stark difference between rich and poor, notably respiratory diseases, heart disease, lung and digestive cancers and dementias.

Read more …

One step up and two steps back every step of the way.

MPs Unite To Condemn May’s ‘Blindfold Brexit’ (Ind.)

MPs of all parties accused Theresa May of delivering a “blindfold Brexit” after she admitted her deal left the public in the dark on a range of vital questions about Britain’s future. Decisions about future trade, the Irish border backstop, fisheries and whether the UK will remain tied to EU rules until after the next general election have all been shelved, a 26-page “political declaration” struck with the EU revealed. The admission came as the deal still looked doomed to defeat in a landmark vote next month – as both pro- and anti-EU Tories attacked it during feisty Commons exchanges in which few supporters spoke up.

Significantly, two leading Brexiteers praised by Ms May for working with her on the document – Iain Duncan Smith and Owen Paterson – said they could not back it unless the backstop was stripped out. More than 80 Tories have criticised the package, pointing to a heavy defeat and a constitutional crisis, unless most can be talked around in the next few weeks of frantic arm-twisting.

Read more …

Merkel is a disaster “..but we’re going to miss her because whatever comes next will be worse.“

Yanis Varoufakis: “The EU Declared War And Theresa May Played Along” (NS)

In 2016, shortly before the EU referendum, Yanis Varoufakis warned that the UK was destined for a “Hotel California Brexit”: it could check out but it could never leave. The former Greek finance minister spoke from experience. In 2015, his efforts to end austerity – “fiscal waterboarding” – were thwarted by the EU. Theresa May’s draft Brexit deal confirmed Varoufakis’s prophecy: the UK would be condemned to purgatory. With fortuitous timing, on the evening that May’s agreement was published, Varoufakis delivered an Oxford Union lecture on Europe’s future. The 57-year-old Marxist and game theorist wryly remarked that Conservative cabinet ministers praised his analysis in private.

“The UK should never have entered the negotiations,” he told me when we met afterwards. “You do not negotiate with the EU because the EU does not negotiate with you. It sends a bureaucrat, in this case it was Mr Barnier…they could have sent an android, or an algorithm.” May’s fatal error, Varoufakis said, was to accept a two-phase negotiation: a divorce agreement followed by a new trade deal. “This was a declaration of war because Barnier said: ‘You will give us everything we want: money, people, Ireland. And only then will we discuss what you want.’ Well, that isn’t a negotiation, that’s a travesty. And Theresa May agreed to play along.” But Varoufakis, who helped persuade Jeremy Corbyn to support Remain in 2016, has little sympathy for the “People’s Vote” movement.

“It’s offensive. What was the first vote? Wasn’t it a people’s vote? To call it a people’s vote is to try and delegitimise the original vote – to say it was dictatorial, it was rigged.” He added: “You have to explain two things: first, how are you going to get the referendum completed before the Article 50 period is over? Secondly, how can you have a binary choice between five or six options? Explain those things and I’m with you.” [..] I asked Varoufakis how he viewed the liberal adulation of [Angela Merkel]. “I’m a dialectician: she has been a disaster and we’re going to miss her. She is a disaster because she squandered immense political capital that could have been used to reshape Europe. But we’re going to miss her because whatever comes next will be worse.”

Read more …

“Punishments [..] are also believed to include slowing internet speeds, reducing access to good schools for individuals or their children, banning people from certain jobs, preventing booking at certain hotels and losing the right to own pets.

China Bans Millions From Flights As ‘Social Credit’ System Introduced (Ind.)

Millions of Chinese nationals have been blocked from booking flights or trains as Beijing seeks to implement its controversial “social credit” system, which allows the government to closely monitor and judge each of its 1.3 billion citizens based on their behaviour and activity. The system, to be rolled out by 2020, aims to make it “difficult to move” for those deemed “untrustworthy”, according to a detailed plan published by the government this week. It will be used to reward or punish people and organisations for “trustworthiness” across a range of measures. A key part of the plan not only involves blacklisting people with low social credibility scores, but also “publicly disclosing the records of enterprises and individuals’ untrustworthiness on a regular basis”.

The plan stated: “We will improve the credit blacklist system, publicly disclose the records of enterprises and individuals’ untrustworthiness on a regular basis, and form a pattern of distrust and punishment.” For those deemed untrustworthy, “everywhere is limited, and it is difficult to move, so that those who violate the law and lose the trust will pay a heavy price.” The credit system is already being rolled out in some areas and in recent months the Chinese state has blocked millions of people from booking flights and high-speed trains. According to the state-run news outlet Global Times, as of May this year, the government had blocked 11.14 million people from flights and 4.25 million from taking high-speed train trips.

[..] People are awarded credit points for activities such as undertaking volunteer work and giving blood donations while those who violate traffic laws and charge “under-the-table” fees are punished. Other infractions reportedly include smoking in non-smoking zones, buying too many video games and posting fake news online. Punishments are not clearly detailed in the government plan, but beyond making travel difficult, are also believed to include slowing internet speeds, reducing access to good schools for individuals or their children, banning people from certain jobs, preventing booking at certain hotels and losing the right to own pets.

Read more …

Admit it or not, but it’s a very small step from China to Google.

Google Wants To Data Mine Your Home And Kids’ Bedroom (ZH)

New patents show Google is quietly developing a smart-home automated system that will routinely eavesdrop on your daily life. The patents describe how cameras and sensors will be mounted in almost every room of the house, scanning and analyzing every movement a human makes. According to the patent description, the smart cameras could recognize Will Smith’s face on a T-shirt. After cross-referencing this data against the human’s browser history, the smart-home might announce or send them a message, “You seem to like Will Smith. His new movie is playing in a theater near you.”

By blending that with an in-depth analysis of other electronic devices in the home, and audio signatures to determine gender, Google will have enough data to create a corporate profile on the human and even their family. The system will then calculate “fashion tastes” by scanning the human’s outfit, and could even determine their income or social class based on any “expensive mechanical and/or electronic devices” it detects. Even creepier, the smart-home will track audio signatures too, could be used to identify users, but also determine gender and age. With a treasure trove of data mined from every room of the home, the smart-home will then tell the human what to watch, what to eat, where to go, and what to buy.

If this all seems invasive, it is essential to understand that tech companies are already data mining you, it just happens to be online: “Google and Facebook both record and analyze user behavior, use it to sort people into categories, and then target them with ads and other content. Facebook likely knows your race and religion, while Google uses your emails and search history to sort you into ad-ready brackets. Netflix infers all types of data on users based on what they watch, then serves back hyper-specific movie and TV categories. This patent simply expands the areas in which your behavior is already mined and recorded from your phone and laptop to your bedroom,” wrote The Atlantic.

Read more …

“Washington didn’t intend Thanksgiving to be a day for offering up glib platitudes that require no thought, no effort and no sacrifice.”

How Do You Give Thanks For Freedoms That Are Constantly Being Eroded? (RI)

Listen: I know it’s been a hard, heart-wrenching, stomach-churning kind of year. It’s been a year of hotheads and blowhards and killing sprees and bloodshed and takedowns. It’s been a year in which tyranny took a few more steps forward and freedom got knocked down a few more notches. It’s been a year with an abundance of bad news and a shortage of good news. It’s been a year of too much hate and too little kindness. It’s been a year in which politics and profit margins took precedence over decency, compassion and human-kindness. We’ve been operating in this soul-sucking, topsy-turvy, inside-out, upside-down state for so long that it’s hard not to be overwhelmed by all that is wrong in the world in order to reflect and give thanks for what is good.

And now we find ourselves at this present moment, more than 200 years after George Washington issued the first Thanksgiving proclamation as a time to give thanks for a government whose purpose was to ensure the safety and happiness of its people and for a Constitution designed to safeguard civil and religious liberty. But how do you give thanks for freedoms that are constantly being eroded? How do you express gratitude for one’s safety when the perils posed by the American police state grow more treacherous by the day? How do you come together as a nation in thanksgiving when the powers-that-be continue to polarize and divide us into warring factions?

Washington didn’t intend Thanksgiving to be a day for offering up glib platitudes that require no thought, no effort and no sacrifice. He wanted it to be a day of contemplation, in which we frankly assessed our shortcomings, acknowledged our wrongdoings, and resolved to be a better, more peaceable nation in the year to come.

Read more …

Nice new tidbits every single day. “CIA has more wiretapped phone calls at hand than the public knows about.”, “Khashoggi was barred from media appearances after criticizing Trump in late 2016..”

CIA Holds ‘Smoking Gun Phone Call’ Of MbS On Khashoggi Murder (Hurriyet)

The CIA is in possession of a phone call recording of Saudi Crown Prince Mohammed bin Salman in which he is heard giving an instruction to “silence Jamal Khashoggi as soon as possible,” Hürriyet columnist Abdulkadir Selvi wrote on Nov. 22. According to Selvi, CIA Director Gina Haspel “signalled” during her trip to Ankara last month the existence of the wiretapped phone call between Crown Prince Mohammed and his brother Khaled bin Salman, who is Saudi Arabia’s ambassador to the United States. Citing unidentified sources, the Turkish columnist wrote that the two Saudi officials are heard in the CIA recording discussing the “discomfort” created by Khashoggi’s public criticism of the kingdom’s administration.

[..] “It is said that the crown prince gave an instruction to silence Jamal Khashoggi as soon as possible and this instruction was captured during the CIA wiretapping. The subsequent murder is the ultimate confirmation of this instruction,” Selvi added, stressing that an international investigation into the murder, if opened, “can reveal more jaw-dropping evidence, as CIA has more wiretapped phone calls at hand than the public knows about.” [..] Trump declared on Nov. 20 that he will not further punish Saudi Arabia for the murder, making clear in an exclamation-filled statement that the benefits of good relations with the kingdom outweigh the possibility its crown prince ordered the killing. Khashoggi was barred from media appearances after criticizing Trump in late 2016, according to the U.S. State Department.

Read more …

There may not be enough time before the new Congress is sworn in. It may become up to the Senate.

Comey, Loretta Lynch Subpoenaed To Testify Before Congress (AFP)

Former FBI director James Comey and former attorney general Loretta Lynch have been subpoenaed to testify before Congress next month before Republicans relinquish control of the House, documents showed Thursday. Comey confirmed he had received a subpoena from the House Judiciary Committee but said he would resist if made to answer questions behind closed doors. “I’m still happy to sit in the light and answer all questions,” he said on his Twitter account. “But I will resist a ‘closed door’ thing because I’ve seen enough of their selective leaking and distortion. Let’s have a hearing and invite everyone to see.”

Lynch, who served under former president Barack Obama, did not immediately comment, but copies of the subpoenas made public Thursday show she was summoned to testify on December 4. Comey was ordered to appear before the committee on December 3. US President Donald Trump has repeatedly accused Comey and Lynch of covering for Hillary Clinton in an investigation into her use of a private server for emails while she was secretary of state. He has often leveled charges of bias in countering a probe by Special Counsel Robert Mueller into whether the Trump campaign colluded with a Russian effort to sway the 2016 elections in the Republican’s favor.

Read more …

This is not just revisionist hypocrisy, this is Orwell.

Hillary Clinton: Europe Must Curb Immigration To Stop Rightwing Populists (G.)

Europe must get a handle on immigration to combat a growing threat from rightwing populists, Hillary Clinton has said, calling on the continent’s leaders to send out a stronger signal showing they are “not going to be able to continue to provide refuge and support”. In an interview with the Guardian, the former Democratic presidential candidate praised the generosity shown by the German chancellor, Angela Merkel, but suggested immigration was inflaming voters and contributed to the election of Donald Trump and Britain’s vote to leave the EU. “I think Europe needs to get a handle on migration because that is what lit the flame,” Clinton said, speaking as part of a series of interviews with senior centrist political figures about the rise of populists, particularly on the right, in Europe and the Americas.

“I admire the very generous and compassionate approaches that were taken particularly by leaders like Angela Merkel, but I think it is fair to say Europe has done its part, and must send a very clear message – ‘we are not going to be able to continue provide refuge and support’ – because if we don’t deal with the migration issue it will continue to roil the body politic.” [..] “The use of immigrants as a political device and as a symbol of government gone wrong, of attacks on one’s heritage, one’s identity, one’s national unity has been very much exploited by the current administration here,” she said.

“There are solutions to migration that do not require clamping down on the press, on your political opponents and trying to suborn the judiciary, or seeking financial and political help from Russia to support your political parties and movements.” Brexit, described by Clinton as the biggest act of national economic self-harm in modern history, “was largely about immigration”, she said.

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There are many more in this list, the former left sold out everywhere.

We came, we saw, we became irrelevant.

And Hillary is still entirely clueless about Trump’s appeal.

Clinton, Blair, Renzi: Why We Lost, And How To Fight Back (G.)

Hillary Clinton, Tony Blair, Matteo Renzi: three of rightwing populism’s greatest scalps. Clinton admits she was left dumbfounded by her 2016 election defeat at the hands of Donald Trump. Renzi’s centre-left party was defeated this year after a surge in the anti-establishment vote in Italy, a country he calls “the incubator” of populism. Blair may not have lost at the ballot box, but his legacy, particularly on Europe, was upended in the Brexit referendum. All three are shunned by sections of their own party that accuse them of being responsible for the failure of the centre-left to offer a sufficiently radical alternative.

But all three are still thinking deeply about rightwing populism – its causes and the threat it poses – the mistakes of the centre left, including their own, and how modern politics appears to be mobilising resentment towards a perceived elite. [..] All three interviewees argue that one significant problem for mainstream politicians is that detailed, reasoned arguments stand little chance against the antics of the populist, whose simplified, amplified rhetoric is apt to drown out costed healthcare programmes or earnest paeans to liberal values. And politicians are no longer held to their promises. “The press does not know how to cover these candidates who are setting themselves on fire every day, who are masters of diversion and distraction,” Clinton said. “That is new.

“I always believed in the [2016 US presidential] campaign … the moderators would ask the hard questions, they would force us to respond and they would draw out the differences. That never happened. Because the guy I was running against is a master at just waving his hands and tweeting and insulting, and dominating the news cycles.”

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Mammals lost out for about 150 million years, came back only when the dinosaurs were wiped out. Mammals would need to rule for another 100 million years or so to match the dinosaur rule.

Elephant-Sized Mammal Cousin Lived Alongside Dinosaurs (R.)

A stoutly built mammal cousin the size of an elephant that munched on plants with its horny beak roamed the European landscape alongside dinosaurs during the Triassic Period about 205 million to 210 million years ago, scientists said on Thursday. Scientists announced the surprising discovery in Poland of fossils of a four-legged beast called Lisowicia bojani that demonstrated that dinosaurs were not the only behemoths on Earth at that time and that the group of mammal-like reptiles to which Lisowicia belonged, called dicynodonts, did not die out as long ago as previously believed. “We think it’s one of the most unexpected fossil discoveries from the Triassic of Europe,” said paleontologist Grzegorz Niedzwiedzki of Uppsala University in Sweden.

A comparison of the Lisowicia bojani with a recent elephant. Tomasz Sulej and Grzegorz Niedzwiedzki/Handout via REUTERS

Lisowicia, the largest-known non-dinosaur land animal alive at its time, was about 15 feet (4.5 meters) long, 8.5 feet (2.6 meters) tall and weighed 9 tons. The only other giants around at the time were early members of the dinosaur group called sauropods that had four legs, long necks and long tails. “The Lisowicia skull and jaws were highly specialized: toothless and the mouth was equipped with a horny beak, as in turtles and horned dinosaurs,” Niedzwiedzki said, adding that it was unclear whether it had tusks as some of its relatives did. The Triassic was the opening chapter in the age of dinosaurs, followed by the Jurassic and Cretaceous periods. The first dinosaurs appeared roughly 230 million years ago. Many of the earliest dinosaurs were modest in size, overshadowed by big land reptiles including fearsome predators called rauisuchians and crocodile-like phytosaurs.

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Nov 212018
 November 21, 2018  Posted by at 10:07 am Finance Tagged with: , , , , , , , , , , , , ,  

Jack Delano Lower Manhattan 1941


Senate Calls On Trump For Saudi Answers (BBC)
Saudi Arabia Tortured Female Right-to-Drive Activists – Amnesty (AP)
Trump Submits Answers To Robert Mueller Questions In Russia Probe (Ind.)
Trump Wanted To Order Justice Dept To Prosecute Clinton, Comey – NYT (R.)
Dow Plunges More Than 500 Points, Erases Gain For 2018 (CNBC)
Stunned Investors Observe The Market Carnage In Shock (ZH)
A Death Cross Is Forming In US Oil (MW)
Bitcoin Plunges As Much As 16% To Below $4,100, A New Low For The Year (CNBC)
Misguided Share Buybacks Are Hollowing Out Companies’ Balance Sheets (MW)
Bank of England Backs Theresa May’s Brexit Deal, Warns Of No-Deal Dangers (G.)
May’s Brussels Trip Only Start Of ‘Endless’ EU Trade Talks (G.)
UK To Be ‘Frozen Out’ Of 182 EU Decisions During Brexit Transition (Ind.)
Interpol Elects South Korean As Its President In Blow To Russia (G.)
Tax ‘Virgin Packaging’ To Tackle Plastics Crisis – Report (G.)
Dead Whale Washes Ashore In Indonesia With 6 Kilos Of Plastic In Stomach (AP)
Julian Assange Deserves A Medal of Freedom, Not A Secret Indictment (USA Today)



The indignation over Trump’s comments on Saudi Arabia is shifting into overdrive. Perhaps that’s needed to expose the hypocrisy inherent in them. It’s not Trump, it’s America that has condoned torture and murder by the House of Saud for decades. That started actively assisting the Saudi’s in Yemen under Obama. Trump refuses to be set up by the media and Democrats as the fall guy for $150 oil prices. He’s thinking: let Congress do it, now that it’s blue. If that’s immoral, he’s not alone.

Senate Calls On Trump For Saudi Answers (BBC)

US President Donald Trump has been asked to ascertain whether Saudi Crown Prince Mohammed bin Salman played a role in the murder of Jamal Khashoggi. Republican and Democratic leaders of the US Senate Foreign Relations Committee on Tuesday sent a letter demanding a second investigation. Mr Trump earlier defended US ties with Saudi Arabia despite international condemnation over the incident. Khashoggi was killed on 2 October inside the Saudi consulate in Istanbul. In a statement on Tuesday, Mr Trump acknowledged that the crown prince “could very well” have known about Khashoggi’s brutal murder, adding: “Maybe he did and maybe he didn’t!”

He later stated that the CIA had not made a “100%” determination on the killing. Following the president’s comments, Republican Senator Bob Corker and Democrat Bob Menendez issued a statement on behalf of the Senate Foreign Relations Committee. In it they called on Mr Trump to focus a second investigation specifically on the crown prince so as to “determine whether a foreign person is responsible for an extrajudicial killing, torture or other gross violation” of human rights. The request, issued under the Global Magnitsky Human Rights Accountability Act, requires a response within 120 days.

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OK, CNN, do your job.

Saudi Arabia Tortured Female Right-to-Drive Activists – Amnesty (AP)

Several activists imprisoned in Saudi Arabia since May, including women who campaigned for the right to drive, have been beaten and tortured during interrogation, Amnesty International has said. Saudi Arabia has detained at least 10 women and seven men on vague national security allegations related to their human rights work, the organisation said on Tuesday. Those detained include Loujain al-Hathloul, Eman al-Nafjan and Aziza al-Yousef, who had campaigned for the right to drive before the decades-long ban was lifted in June. Amnesty said that according to three testimonies it obtained, some of the activists were repeatedly given electric shocks and flogged, leaving some unable to walk or stand properly. In one instance, an activist was hung from the ceiling.

Another testimony said one of the detained women was subjected to sexual harassment by interrogators wearing face masks. The kingdom is at the centre of an international firestorm after the killing of Saudi journalist Jamal Khashoggi, who had written critically about Crown Prince Mohammed bin Salman’s crackdown on dissent, including the arrests of the women activists. Khashoggi was killed and then dismembered by Saudi agents in the kingdom’s consulate in Istanbul on 2 October. Lynn Maalouf, Amnesty’s Middle East research director, said: “Only a few weeks after the ruthless killing of Jamal Khashoggi, these shocking reports of torture, sexual harassment and other forms of ill-treatment, if verified, expose further outrageous human rights violations by the Saudi authorities.”

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What a waste of resources.

Trump Submits Answers To Robert Mueller Questions In Russia Probe (Ind.)

Donald Trump has submitted written answers to questions from Special Counsel Robert Mueller as part of the probe into Russian meddling in the 2016 election and possible collusion with the Trump campaign. “We answered every question they asked that was legitimately pre-election and focused on Russia,” Trump lawyer Rudy Giuliani said in an interview. “Nothing post-election. And we’ve told them we’re not going to do that.” Mr Giuliani said Trump did not plan to answer any questions from Mr Mueller on whether he tried to obstruct the investigation once he won office, such as by firing former FBI Director James Comey last year. “It is time to bring this inquiry to a conclusion,” the lawyer said in an earlier statement on the probe, which Mr Trump has repeatedly called a “witch hunt.”

Mr Trump signed the submission on Tuesday before he left Washington to spend the Thanksgiving holiday in Florida, a person familiar with the matter said. Mr Mueller was tasked to probe “any matters that arose or may arise directly from the investigation” into possible collusion between Mr Trump’s campaign and Russia during the 2016 election. [..] Mr Giuliani said in his statement the president had provided “unprecedented cooperation” with the probe over the past year and a half, noting that more than 30 White House-related witnesses had been questioned and 1.4 million pages of material turned over before Mr Trump responded to the pre-election questions in writing. He added that “much of what has been asked raised serious constitutional issues and was beyond the scope of a legitimate inquiry.”

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Not exactly news, is it? Of course there will be an investigation of Hillary, Comey and a whole circus around them. It would be a serious perverson of justice if there isn’t.

Trump Wanted To Order Justice Dept To Prosecute Clinton, Comey – NYT (R.)

U.S. President Donald Trump wanted to order the Justice Department to prosecute two political foes, his one-time presidential opponent Hillary Clinton and former FBI director James Comey, in the spring, but his White House counsel rebuffed him, the New York Times reported on Tuesday. Don McGahn, the White House counsel at the time, wrote a memo to the president outlining consequences for Trump if he did order these prosecutions. The outcomes ranged from the traditionally independent Justice Department refusing to comply, to congressional probes and voter outcry, the Times reported.

The New York Times also reported Trump’s lawyers privately asked the Justice Department to investigate Comey for mishandling sensitive government information and his role investigating Clinton’s use of a private email account and server, but law enforcement officials declined. It was not clear if Trump read the memo or pursued the prosecutions further, the New York Times said. It was also not clear what specific charges Trump wanted the Justice Department to pursue against Comey and Clinton, the Times reported. Trump has publicly railed against Clinton’s private email use during her tenure as U.S. Secretary of State, as well as her role in the Obama administration’s decision to allow a Russian company to buy a uranium mining firm.

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Time to start writing about finance again?!

Dow Plunges More Than 500 Points, Erases Gain For 2018 (CNBC)

The Dow Jones Industrial Average and S&P 500 fell sharply on Tuesday and turned negative for the year as a decline in Target shares pressured retailers, while some of the most popular tech shares dropped again. The 30-stock Dow dropped 551.80 points to 24,465.64 and the S&P 500 plunged 1.8 percent to close at 2,641.89. The Dow and S&P 500 were up 1.2 percent and 0.6 percent, respectively, for 2018 entering Tuesday. Meanwhile, the Nasdaq Composite also dropped 1.7 percent to 6,908.82 but managed to hang on to a slight gain for 2018. Tuesday’s declines come after the Dow dropped 395 points on Monday.

Stocks hit their lows of the day after Doubleline Capital founder Jeffrey Gundlach said stocks are still too expensive, adding there has not been a “panic low” yet. The Dow was down nearly 650 points at its session low, while the S&P 500 and Nasdaq had both dropped more than 2 percent. Target fell 10.5 percent after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.

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Nah, they’re not investors.

Stunned Investors Observe The Market Carnage In Shock (ZH)

After another abysmal day, in which every single sector in the market closed in the red as stocks tumbled 2%, capping a dreadful two-month stretch since the S&P hit its all time highs exactly two months ago, which has seen both the S&P and the Dow turn red for the year with the Nasdaq just barely holding onto green, while oil crashed 6% slumping to a one year low, junk bonds matched a record streak of losses, the overall market just suffered one of its worst sessions in the past three years. But what is most remarkable is the following chart from Bloomberg which shows the year-to-date return of the best performing asset between US and global equities, corporate bonds, Treasuries, gold and real cash, and according to which 2018 is shaping up as what may be the worst year on record for cross-asset investors. Indeed, nothing at all has worked this year!

The inability of any single asset class to escape the dismal black hole supergravity of devastating losses in a brutal post-BTFD catharsis that has mutated into an equal-opportunity rout, crushing returns across all assets, has left investors reeling, shellshocked and paralyzed, and dreading what may come tomorrow let alone next year when both the US economy and corporate earnings are expected to see their supercharged recent growth rates come crashing back down to earth. “While there’s still no ‘panic in the streets,’ most traders are unconvinced that the selling will slow down anytime soon,” said Instinent’s head of trading Larry Weiss. “The flight to quality is now a flight to cash. It’s tough to convince anyone that now is the time to put money to work.”

[..] Hedge funds, who hoped that “buy the dip” would work one last time and who rushed into the traditional “safety” of tech stocks at the end of October, were whipsawed, and turned net sellers this month, with the group accounting for the most selling among major industries according to Goldman Sachs. Meanwhile, as if sensing the coming storm, Goldman writes that hedge fund net exposures steadily declined throughout 2018, including during 2Q and 3Q while the broad equity market rallied, leaving most investors in the cold. Net long exposure calculated based on 13-F filings and publicly-available short interest data registered 49% at the start of 4Q, a decline from 56% at the start of 2018, and one of the lowest in years.

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Potential volatility in oil is huge. Any little shrapnel of news, Saudi, Iran, Russia, shale, can force prices up 50%.

A Death Cross Is Forming In US Oil (MW)

Oil is already in a bear market, but now a fresh, negative pattern is crystallizing in the commodity that has absolutely bludgeoned bulls over the past two months. January West Texas Intermediate crude on its first full session as the front-month contract, was down a whopping 7.5%, to $52.91 a barrel on the New York Mercantile Exchange and that downtrend has propelled the U.S. benchmark to the brink of forming a death cross—a chart formation in an asset that many market technicians believe marks the point that a short-term decline morphs into a longer-term downtrend (see chart below).

Based on the continuous chart for the most-active oil contract, the 50-day moving average at $67.58 a barrel is less than 0.5% shy of falling beneath the long-term 200-day moving average at $67.25, according to FactSet data. At the current rate of decline, a death cross could occur within a week or two. Both the U.S. contract and the global benchmark Brent oil are in bear market, usually characterized as a decline of at least 20% from a recent peak. In fact, U.S. oil is down 31% from its Oct. 3 peak at $76.41 a barrel.

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Miners are ditching their equipment.

Bitcoin Plunges As Much As 16% To Below $4,100, A New Low For The Year (CNBC)

Bitcoin is still struggling to find a bottom this week. The digital currency dropped as much as 16 percent on Tuesday to its lowest level since Sept. 30, 2017, according to data from CoinMarketCap.com. Bitcoin fell as low as $4,076.59, bringing its total losses in seven days to roughly 30 percent. The cryptocurrency briefly pared those losses and was down about 7 percent in afternoon trading. As U.S. stock markets closed though, bitcoin was still down 12 percent over 24 hours, trading near $4,299, according to data from CoinDesk.

The price plunge came after weeks of rare stability for the world’s largest and best-known cryptocurrency. While global markets churned in October, bitcoin traded comfortably in the $6,400 range — a break from volatility earlier this year. Its total losses this year are now more than 65 percent. ts epic rise last year started right after Thanksgiving as it began to gain status as a household name. Since then, the cryptocurrency has fallen more than 40 percent. Bitcoin first topped $10,000 at the end of November and made it to nearly $20,000 a week before Christmas as retail investors poured in and two regulated exchanges prepared to launch futures markets.

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“With share repurchases in these companies being almost three times their actual investment, one must wonder how much actual U.S. economic growth they are expecting.”

Misguided Share Buybacks Are Hollowing Out Companies’ Balance Sheets (MW)

GE was one of Wall Street’s major share buyback operators between 2015 and 2017; it repurchased $40 billion of shares at prices between $20 and $32. The share price is now $8.60, so the company has liquidated between $23 billion and $29 billion of its shareholders’ money on this utterly futile activity alone. Since the highest net income recorded by the company during those years was $8.8 billion in 2016, with 2015 and 2017 recording a loss, it has managed to lose more on its share repurchases during those three years than it made in operations, by a substantial margin. Even more important, GE has now left itself with minus $48 billion in tangible net worth at Sept. 30, with actual genuine tangible debt of close to $100 billion.

As the new CEO Larry Culp told CNBC last Monday: “We have no higher priority right now than bringing those leverage levels down.” The following day, GE announced the sale of 15% of its oil services arm Baker Hughes, for a round $4 billion. Of course, since that sale values Baker Hughes at $26 billion, and GE paid $32 billion for 62% of Baker Hughes as recently as last year, which looks to me like a valuation for the whole company of $52 billion, GE shareholders appears to have lost half the value of their investment in Baker Hughes in about 18 months. [..] A recent Financial Times article outlined how the five tech companies with the most cash (Apple, Alphabet, Cisco, Microsoft and Oracle) have repurchased an astounding $115 billion of stock in the first three quarters of 2018.

By contrast, the total capital spending of the five companies was only $42.6 billion during the same period. The story then congratulated investors for having done so well out of President Trump’s tax reform, which lowered the corporate tax rate, thus encouraging investment in the United States. With share repurchases in these companies being almost three times their actual investment, one must wonder how much actual U.S. economic growth they are expecting. [..] These share repurchases are misguided in so many ways. First, Apple, Alphabet and Microsoft are valued by the stock market at close to $1 trillion, levels no company has ever reached before. If you ignore the current stock price, a company repurchasing its shares is simply giving away its cash and reducing its share count; it creates no value.

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Dangerously close to a political statement.

Bank of England Backs Theresa May’s Brexit Deal, Warns Of No-Deal Dangers (G.)

Mark Carney has thrown his weight behind Theresa May’s Brexit deal, warning that a no-deal scenario would damage the economy, trigger job losses, lead to lower pay for workers and cause inflation to rise. The governor of the Bank of England said May’s draft EU withdrawal agreement would “support economic outcomes” that would be positive for the British economy, primarily because it would give Britain more time to prepare for whatever final Brexit deal is agreed between Westminster and Brussels. “We welcome the transition arrangements in the withdrawal agreement. It’s at the heart [of the deal],” he told MPs on the Treasury select committee, a week after the prime minister agreed the terms of the deal with the EU.

“[The deal] improves our ability to discharge our function relative to having no deal,” he added. The timing of the governor’s comments could help to support May as she faces tough opposition from across the political divide, following cabinet resignations and Labour’s promise to vote it down in parliament. Carney warned that failure to agree a Brexit deal with Brussels before the March 2019 deadline would deliver a “large negative shock” to the UK economy that would have a persistent effect, lowering growth and causing job losses. He said such an outcome would deliver an “unprecedented supply shock” to the UK economy with few historical or international comparisons. “It wouldn’t be a happy situation to be in,” he said.

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These talks should have started two years ago. And even then.

May’s Brussels Trip Only Start Of ‘Endless’ EU Trade Talks (G.)

When Theresa May goes to Brussels for tea with Jean Claude Juncker on Wednesday afternoon, the two leaders will have in front of them a metaphorical Christmas tree of a political declaration. “And every member state has put a bauble on it”, an EU diplomat said. A seven-page document published last week, offering some heads of terms on the future relationship, is set to more than double to some 20 pages. Calls for more ambitious language around the trade elements have been made. Demands for a Spanish veto over any deal covering Gibraltar have been tabled. And an array of asks on so called “level playing field” commitments in any future trade deal are in the mix.

There is even talk of side-declarations to the political declaration emerging at the special Brexit summit next Sunday to allow member states to feel that they have drawn a line in the sand about the real trade talks to come. “It’s all getting very confusing,” admitted a second EU diplomat. Not to Sir Andrew Cahn, the former chief executive of the government’s UK Trade & Investment (UKTI) department, who was also an aide to Neil Kinnock when vice president of the European commission in the late 1990s. This is, he said, likely to be a mere amuse-bouche to the “continuous endless” talks that will open on the UK’s trading relationship with Brussels after 29 March 2019 as the UK finds its way around the EU’s orbit.

“It is a classic EU negotiation and the member states are performing their normal way,” Cahn said. “The French always come in late to toughen their negotiating position towards the end, and that’s when they can get some additional things. “The Spanish are copying with Gibraltar – although that is partly a function of domestic Spanish politics with Pedro Sánchez [the Spanish prime minister] being vulnerable at home.”

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What, she didn’t tell you?

UK To Be ‘Frozen Out’ Of 182 EU Decisions During Brexit Transition (Ind.)

The UK will be “frozen out” of EU decisions on no fewer than 182 new rules in the months after Brexit, a new analysis says, including over budget spending, road signs and drinking water. The full scale of fresh regulations in the pipeline – during Theresa May’s planned 21-month transition period – exposes the blunder of making Britain “a rule-taker, not a rule-maker”, it warns. During that transition, the UK will be bound by Brussels’ decisions but without any ministers in the EU council, or MEPs in the European parliament, to influence them. Now the campaign for a People’s Vote on the Brexit outcome has examined the decisions expected before 2020, which also include alcohol-taxing and rules for UK investment funds.

“This analysis sets out for the first time the full scale of the UK’s capitulation under this so-called deal,” said Chris Bryant, a Labour supporter of People’s Vote. “The prime minister’s deal would weaken our ability to have a say in over 180 crucial decisions that are going to be made in Europe while the UK is in transition – meaning we have to abide by their rulings but have no say and no ability to protect Britain’s interests. “This dodgy deal will leave Britain frozen out of decision making and forced to pay billions of Euros for the privilege.” The argument goes to the heart of criticism – by both pro and anti-Brexit MPs – that the UK will be a “vassal state” during the transition phase.

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Russophobia continues unabated.

Interpol Elects South Korean As Its President In Blow To Russia (G.)

South Korea’s Kim Jong-yang has been elected as Interpol’s next president, edging out a longtime veteran of Russia’s security services who was strongly opposed by the US, Britain and other European nations. The White House and its European partners had lobbied against Alexander Prokopchuk’s attempts to be named the next president of the international police body, saying his election would lead to further Russian abuses of Interpol’s “red notice” system to go after political opponents. Prokopchuk is a general in the Russian interior ministry and serves as an Interpol vice-president. Kim was chosen by Interpol’s 94-member states at a meeting of its annual congress in Dubai.

He will serve until 2020, completing the four-year mandate of his predecessor, Meng Hongwei, who went missing in his native China in September. Beijing later said Meng resigned after being charged with accepting bribes. Critics say that Prokopchuk oversaw a policy of systematically targeting critics and dissidents during his time in charge of the Russian office of Interpol. On Tuesday, the US secretary of state, Mike Pompeo, threw his weight behind Kim, who is the acting president of the global police body. “We encourage all nations and organisations that are part of Interpol and that respect the rule of law to choose a leader with integrity. We believe Mr Kim will be just that,” Pompeo told reporters.

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If only we move to recycled plastic! Geez, Louise, how about no plastic at all? You can cut at least 50% without changing anything much at all. More recycling is a fake message.

Tax ‘Virgin Packaging’ To Tackle Plastics Crisis – Report (G.)

The government should introduce a new tax on virgin packaging to revolutionise the recycling system in the UK and tackle the plastics crisis, according to a new report. The study, presented to MPs and industry figures at Westminster on Tuesday evening, calls on ministers to impose a fee on packaging materials and offer a rebate for those products that use more recycled material. The WWF and the Resource Association, which commissioned environment consultancy Eunomia to produce the report, said the proposals would transform the UK’s broken recycling system – and drastically reduce the demand for raw materials, including fossil fuels. Dr Lyndsey Dodd, head of marine policy at WWF UK, said: “Our oceans are choking on plastic, 90% of the world’s sea birds have fragments of plastic in their stomach.

Despite the public outcry, more products are being made with virgin, or new, plastic than with recycled plastic.” Last year the Guardian revealed that plastic production is set to increase by 40% over the next 10 years as fossil fuel companies look to use raw materials produced by fracking in the US. The new report follows an announcement in October that the government is launching a consultation on the introduction of a tax on all plastic packaging with a recycled content of less than 30%. [..] Earlier this year the Guardian reported the plastics recycling industry was under investigation for suspected widespread abuse and fraud within the export system. Since China banned the import of plastic waste, the UK has been chasing other markets in Malaysia, Vietnam and Thailand, but these countries are also imposing restrictions due to the stockpiling of waste.

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“..115 plastic cups, four plastic bottles, 25 plastic bags, two flip-flops, a nylon sack and more than 1,000 other assorted pieces of plastic..”

Dead Whale Washes Ashore In Indonesia With 6 Kilos Of Plastic In Stomach (AP)

A dead whale that washed ashore in eastern Indonesia had a large lump of plastic waste in its stomach, including drinking cups and flip-flops – causing concern among environmentalists and government officials in one of the world’s largest plastic polluting countries. Rescuers from Wakatobi National Park found the 9.5-metre sperm whale late on Monday in waters near Kapota Island, southeast of Sulawesi, after receiving a report from environmentalists that villagers had surrounded the dead creature and were beginning to butcher its rotting carcass, park chief Heri Santoso said. Researchers from wildlife conservation group WWF and the park’s conservation academy found about 5.9 kilograms of plastic waste in the animal’s stomach – including 115 plastic cups, four plastic bottles, 25 plastic bags, two flip-flops, a nylon sack and more than 1,000 other assorted pieces of plastic.

“Although we have not been able to deduce the cause of death, the facts that we see are truly awful,” said Dwi Suprapti, a marine species conservation coordinator at WWF Indonesia. She said it was not possible to determine if the plastic had caused the whale’s death because of the animal’s advanced state of decay. Indonesia, an archipelago of 260 million people, is the world’s second-largest plastic polluter after China, according to a study published in the journal Science in January. It produces 3.2 million tonnes of mismanaged plastic waste a year, of which 1.29 million tonnes ends up in the ocean, the study said.

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Can we say the MSM wakes up with this USA Today piece?

Julian Assange Deserves A Medal of Freedom, Not A Secret Indictment (USA Today)

On the same day the Assange indictment scored headlines, Trump awarded seven Presidential Medals of Freedom. No controversy greeted posthumous awards to Babe Ruth and Elvis Presley — unlike the ruckus regarding Miriam Adelson, wife of Republican super-donor Sheldon Adelson. Public Citizen, a liberal nonprofit, howled that the Adelson award “is just the latest sign of [Trump’s] ability to corrupt and corrode all aspects of the government.” New York Times columnist Paul Krugman caterwauled that it was “ludicrous” and “and an insult to people who received the medal for genuine service.” In reality, Presidential Medals of Freedom have routinely been exploited to buttress the political establishment, with bevies of awards for political operators, members of Congress, and pliable foreign leaders.

President Lyndon Johnson distributed a bushel of Medals of Freedom to his Vietnam War architects and enablers, perhaps as consolation prizes for losing the war. (The medal awarded to Defense Secretary Robert McNamara, whose lies about the war making progress cost thousands of Americans and Vietnamese their lives, fetched $40,625 at an auction a few years ago.) President George W. Bush conferred Medals of Freedom on his Iraq war team, including CIA chief George “Slam Dunk” Tenet, Iraq viceroy Paul Bremer, and ambassador Ryan Crocker, whom Bush called “America’s Lawrence of Arabia.”

Some of the biggest fabulists of the modern era — including Henry Kissinger and Dick Cheney — also pocketed the award.The controversies over Assange and Adelson provide a serendipitous opportunity to update the freedom awards. Because few things are more perilous to democracy than permitting politicians to coverup crimes, there should be a new Medal of Freedom category commending individuals who have done the most to expose official lies. This particular award could be differentiated by including a little steam whistle atop the medal — vivifying how leaks can prevent a political system from overheating or exploding.

Assange would deserve such a medal — as would Thomas Drake and Edward Snowden (who revealed NSA’s abuses), John Kiriakou (who revealed CIA torture), and Daniel Ellsberg (who leaked the Pentagon Papers). Admittedly, there may be no way to stop presidents from giving steam whistle freedom awards to political donors’ wives. Organizations like Wikileaks are among the best hopes for rescuing democracy from Leviathan. Unless we presume politicians have a divine right to deceive the governed, America should honor individuals who expose federal crimes.

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Aug 092018

René Magritte The evening gown 1954


Julian Assange has received an letter from the US Senate asking him to testify in front of them. What to make of that is not entirely clear. Far as I know, Assange offered such testimony multiple times, under the ‘right standards’. The Senate ostensibly wants this to take place behind closed doors, and it’s hard to see how that would fit Assange’s standards. But who knows?

What struck me was that the letter was signed by Senators Richard Burr (R-NC) and Mark Warner (D-VA). and especially the latter runs like a red thread through everything that has to do with Assange and the US. It reminded me of what John Solomon said in his June 25 piece ‘How Comey Intervened To Kill Wikileaks’ Immunity Deal’ about Assange lawyer Adam Waldman, who according to Solomon has a ‘Forrest Gump-like penchant for showing up in major cases of intrigue’.

Mark Warner has that, too. What made me return to this is that in his piece yesterday on the Senate request, Tyler Durden, referring to Solomon’s article, wrote: After Assange’s request was run up the flag pole, Senator Warner was issued a “stand-down” order by Comey.. And I thought: I’m not sure that’s entirely correct, and not only because Comey cannot ‘order’ a US Senator to do anything.

The stand down order was not for Warner, he just passed it on to Waldman and his counterpart acting for the DOJ, David Laufman, head of Justice’s counterintelligence and export controls section. NOTE: we don’t even know if the stand down didn’t really come from Warner, or Comey AND Warner, or someone else altogether.

What we do know is that it was a very peculiar order at a very peculiar moment in time, because the intelligence community could have gotten something tangible and valuable out of the negotiations. Solomon: “..officials “understood any visibility into his thinking, any opportunity to negotiate any redactions, was in the national security interest and worth taking,” says a senior official involved at the time.

They were well on their way to -at least potentially- save the lives of CIA operatives and assets. Negotiations had been going on for at least 2 months, and probably more like three. But then Assange offered to provide evidence that he didn’t get the DNC files from Russia. And that seems to have changed the atmosphere. Tyler has some more about this, outside of the Solomon piece:

‘Last August, Congressman Dana Rohrabacher travelled to London with journalist Charles Johnson for a meeting with Assange, after which Rohrabacher said the WikiLeaks founder offered “firsthand” information proving that the Trump campaign did not collude with Russia, and which would refute the Russian hacking theory.’ After Trump denied knowledge of the potential deal, Rohrabacher raged at Trump’s Chief of Staff, John Kelly, for constructing a “wall” around President Trump by “people who do not want to expose this fraud.”

NOTE: that meeting took place 4-5 months AFTER the Comey (et al?) stand down order. So Assange was still reaching out and offering to spare individual CIA assets. He has released a lot of the CIA Vault 7 files, but not all. To my knowledge he has held back on that to this day.


I don’t know how much you still follow from the pro-Russiagate press, which is about the entire US MSM, but Rohrabacher is habitually called a traitor, a Putin puppet and worse for talking to Russians, just like he is for going to see Assange. Once you start trying to find a way out of the ever tighter woven Russia Russia web, you’re fair game. Even if that’s simply your job as a Congressman, or at least your interpretation of what the job entails.

Back to Solomon for a bit. What he describes is not some amnesty deal, but a “Queen for a Day” proffer. Which in this case was essentially a safe passage guarantee for Assange to leave the Ecuador embassy only to go talk to US government people. We don’t know all the prospective topics of the talks, and they don’t seem to have agreed on a location (London, Washington?!) before the Comey order. Solomon:

Not included in the written proffer was an additional offer from Assange: He was willing to discuss technical evidence ruling out certain parties in the controversial leak of Democratic Party emails to WikiLeaks during the 2016 election. The U.S. government believes those emails were hacked by Russia; Assange insists they did not come from Moscow.

“Mr. Assange offered to provide technical evidence and discussion regarding who did not engage in the DNC releases,” Waldman told me. “Finally, he offered his technical expertise to the U.S. government to help address what he perceived as clear flaws in security systems that led to the loss of the U.S. cyber weapons program.”

That is just funny: Assange offered to help the CIA on its security systems. That must have pissed them off mightily, because it can only mean they really needed to strengthen security (or he wouldn’t have brought it up). But then Waldman reaches out to Warner, in what may well have been a fatal mistake. The talks with the DOJ were going well, and might have been enough. Getting politics involved in it was one took over the line:

[..] Just a few days after the negotiations opened in mid-February, Waldman reached out to Sen. Warner; the lawyer wanted to see if Senate Intelligence Committee staff wanted any contact with Assange, to ask about Russia or other issues. Warner engaged with Waldman over encrypted text messages, then reached out to Comey. A few days later, Warner contacted Waldman with an unexpected plea.

“He told me he had just talked with Comey and that, while the government was appreciative of my efforts, my instructions were to stand down, to end the discussions with Assange,” Waldman told me. Waldman offered contemporaneous documents to show he memorialized Warner’s exact words.

Waldman couldn’t believe a U.S. senator and the FBI chief were sending a different signal, so he went back to Laufman, who assured him the negotiations were still on. “What Laufman said to me after he heard I was told to ‘stand down’ by Warner and Comey was, ‘That’s bullshit. You are not standing down and neither am I,’” Waldman recalled.

A source familiar with Warner’s interactions says the senator’s contact on the Assange matter was limited and was shared with Senate Intelligence chairman Sen. Richard Burr (R-N.C.). But the source acknowledges that Warner consulted Comey and passed along the “stand down” instructions to Waldman: “That did happen.”

Okay, so we have Warner very much in the thick of the DOJ negotiations with Assange. Fast forward to late June 2018, when his name pops up again in a list of 10 Democratic Senators who asked Vice President Mike Pence to, on a visit to Ecuador, ask new president Lenin Moreno, to revoke Assange’s asylum on the London embassy.



Warner is there, along with such fine human beings as Dianne Feinstein, and the two Dicks Durbin and Blumenthal. Wikileaks, which posted the list, suggested: “Remember them”. Looks like an idea. Why would the Democratic party want Assange delivered to the lions? Oh, right, Russia Russia, the entirely unproven allegations which they are so desperate to tie Assange into.

They can’t prove any of the many allegations of Russian meddling, let alone their role in Hillary’s election loss, and they can’t prove any allegation against Julian Assange, at least none that he could be charged for/with, but tie Russia and WikiLeaks together and they feel they no longer have to prove anything at all, that mere allegations are strong enough.

If there is no crime Assange can be accused of, you just label him a terrorist, and all your legal problems disappear. Because terrorism can be anything, and because of national security reasons, any evidence, whether it exists or not, must be treated in secret. What reason, what grounds, do these Senators have to ask Ecuador to revoke Assange’s asylum? What legal grounds could possibly exist? We have no way of knowing, and because they label Julian a terrorist, we have no right to, either. Or so they claim.

This is called abomination of justice. In the same way that America and Britain’s treatment of him is called torture. And no, that is not too strong a term. A man who has never been charged with a crime by anyone, in any country, is being tortured. Julian has severe, painful, dental problems, he has developed a condition that makes his legs swell, and his bone density is dropping fast due to extended lack of sunlight.

These people have simply decided to wait it out, so they don’t have to go through elaborate legal procedures that they may well lose, to wait until Assange has no choice but to walk out of the embassy, or be carried out on a stretcher or in a coffin. It’s not even possible to list all the British, American, Ecuadorian and international laws his treatment violates.

Someone should give it a try, though. Just like someone should investigate Mark Warner’s role in all of this. Warner was pivotal in killing off the Assange legal teams’ talks with the DOJ, he asked Ecuador to stop Assange’s asylum (which is so illegal you don’t even want to go there), and now he requests for Assange to appear before the US Senate.

Someone investigate that guy. If I can say one last thing, it would be that Warner exemplifies all that is wrong with the US Democratic Party. He’s the Forrest Gump of all their future election losses. The Democrats should be standing up to protect people like Assange, but instead they follow the example of Hillary, who said about Assange “can’t we drone this guy?”.

Yeah, the very guy who’s never been charged with a single crime. She undoubtedly said it in the same tone of voice as her insane cackle of “We came, we saw, he died” about Gaddafi. Looked at Libya lately?

The essence of this is that we will be better people, and better societies, with Julian Assange around to help us be better. Without him, things look a whole lot darker. We need to be able to hold politicians, corporations and secret services to account. And the more they resist this, often in illegal ways, the more we must insist.

The idea was never that we must answer to them. They must answer to us, and we must be able to throw them out when they cross legal and moral lines. It’s beyond the pale that that has to be explained once again. And trying to explain that, with examples, is all that Julian Assange has ever done.



Mar 302018
 March 30, 2018  Posted by at 7:07 pm Finance Tagged with: , , , , , , , , , , ,  

Jerome Liebling May Day Union Square Park New York City 1948



Dr. D. peels the American political onion to get down to what it’s all about. I’m impressed. He explains America better than just about anyone. Turns out, there ain’t much left. So yeah, what happened?



Dr. D: The news cycle runs so frenetically it’s easy to lose track of the bigger tide. Let’s go back a week and look at something the Automatic Earth has been talking about since the beginning.

This weekend at a speech in Mumbai, Hillary Clinton said:

“If you look at the map of the United States, there’s all that red in the middle where Trump won. …I win the coast….I won the places that represent two-thirds of America’s gross domestic product. So I won the places that are optimistic, diverse, dynamic, moving forward. And his whole campaign, ‘Make America Great Again,’ was looking backwards.”

There are many ways to look at this: for one thing, by number, over 90% of the counties are Red. Yet over 50% of the population is concentrated in the cities and Blue counties. Clinton officially won the popular vote. Yet the United States has always had a geographical Electoral College system. A compromise of representation between small, weak states and strong, large states, and the rules of the 2016 campaign were no mystery or surprise. Yet that’s only the middle-sized picture.

The Big Picture is Mrs. Clinton saying she’s representing the important people, the right people – even the working people – and that 2/3rds of those people live exclusively in Blue districts on both coasts. While this is arguably true, it wasn’t always true. NYC or San Francisco have always been important, but from their founding until now, places like Dayton, St. Paul, Pittsburgh, or New Orleans were considered vital, important places, places where their own specialty happened: tires or flour, steel or shipping, lumber or mining.

What Happened? In a way the election was a referendum on “What Happened?” What happened to my community, my country, my area, and all the vital work those long-abandoned areas used to do, what happened to the massive GDP those areas used to contribute, and the answer is simple:


An organism contracts from the periphery to the core.


There’s a lot in that statement. As it took decades, even a century to happen, you can see which peripheries were sacrificed first and next, who had power, who didn’t, and how long they could maintain it; and that’s interesting, because it was not East or West, white or black, rural or urban as they might have you believe. There are as many hopeless, abandoned people in Baltimore as there are in Billings, Montana, possibly more, and possibly started far sooner. But if it’s not ethnic or geographical, then what is it?


An organism contracting from the periphery to the core is a consequence of centralization.


The Automatic Earth began with discussing the shrinking of the country, of industrialization, in terms of who would receive the ever-dwindling supplies oil and energy, the infrastructure and attention, but that is not necessarily a function of practicality. It is more often a function of political power, and we largely have a political problem and not a practical one.

The Core has been using their power to attract and concentrate more wealth and more power to themselves and their areas until most of the nation’s wealth and power are concentrated in Clinton’s 2/3rds of GDP, the sub-10% of the counties. All top 10 richest zip codes are now in one region: the Washington D.C. area.

Economic wealth and power is used to expand political power, further extracting the wealth of the Periphery to maintain the lifestyle of the Core. While this may seem a practical strategy, it isn’t. At one time the Periphery was creating maybe 2/3rds of the wealth of the nation, costing nothing, and that was with no more infrastructure than remains today.

So when those places are idled, 2/3rds of the nation’s GDP also vanishes, and while the Core can maintain their lifestyle by cannibalizing the remaining energy and attention, the entire nation they are part of only becomes far poorer. So far from the concentration of power making them stronger , it’s making them weaker , as they have a fraction of the former wealth and ability, cohesion and cooperation, men and materials to draw on.


This leads to the problem she highlights, which is social and political fracturing. With a majority of the wealth pulled to the Core, the Periphery withdraws its economic and social consent in a sense of unfairness that is only validated by further extractions, concentrations, and non-cooperations.

This can make it more difficult to run even the Core economy as disagreements develop between Core vs Periphery or entitled vs disenfranchised peoples even within the Core itself, leading to a difficulty maintaining compliance, resource supplies, disagreements on how to allocate wealth, support infrastructure, and so on.

This may seem an engineering issue, but this is also Tainter’s “Collapse of Complex Societies”, where cultures weather many storms, many expansions and contractions, but what causes “Collapse” is the attempt to maintain expensive infrastructure built up during the good times, at the expense of one portion of society. If compromise can be reached, Society survives.

If a compromise cannot be reached and the Core attempts to force its will via social and military force, the price of compliance becomes too high and fails, and with it, the cooperation, the social contract that makes a people or a nation one unit. It fractures, and when it does, those pieces break up and become, as he says, simpler, Less Complex societies. Less specialized, less concentrated, and less centralized, or by our modern pejorative view, “Primitive.”

As our American society has measurably less energy since 1974, we have seen the re-allocation and distribution of that energy ring-fenced into an ever-dwindling core of fewer counties, and fewer participants in those counties, and like other complex societies, we have been socially fracturing since that time as well, as fewer and fewer within the system benefit from it.

There’s much more to unpack in this, but let’s just ask some questions:

• What makes a “Core”? What constitutes the “Periphery”?

• Since the Periphery has and could contribute a majority of overall GDP, what inspires the Core to sacrifice it rather than expand their wealth through it?

• As a metaphor for a bodily process, a biological “contraction” occurs during emergencies such as starvation, freezing, or flight. But would the body really survive if it crippled the legs, lost its fingers, or its hearing to save itself? Contrarily, would the body survive and function if the brain, liver, or heart swelled to 3 times their original size?

• What is the resource load of a brain or stomach that is 3x larger than necessary?

• Since from an engineering perspective all parts of a machine must be in working order for it to work at all, what impractical, non-engineering priorities must be established to cause the core and periphery to become so mismatched?

• How are those impracticalities decided? How are they maintained?

• Is the deciding and maintaining of inequity and non-function a benefit to the Core? To the Periphery? Both? Neither?

• Once the Periphery has been sacrificed to the Core, what must happen for them to be re-joined and freely cooperate again?

• Can this be done? What would have to be sacrificed that wasn’t sacrificed before? By which side? One? Both?


Mrs. Clinton’s idle quote has meaning. If her places are “optimistic, diverse, dynamic, moving forward” then logically the other , the 90% of Red America is “pessimistic, oppressive, racist, dull, lazy, and backwards.” “Deplorable,” if you will. Aside from how this doesn’t seem to be a good pitch to win votes among 90% of voting counties, you have to ask, “How did they get this way?” and “What is your plan to gather your countrymen and make them optimistic, productive, and to work again, and thus help all?” Yet oddly, that was her opponent’s slogan.

If she’s not asking the question of how to include and elevate everyone, isn’t she really saying “I’m in favor of further enriching my Core at your expense”? And while historically that is indeed a common response to dwindling energy, Tainter warns it may also be one that can collapse both the economy and the society.

Since large, concentrated societies contract to the Core to protect themselves and their critical assets, those in the core historically won’t offer time or resources to help anyone but themselves: the army, the police, the roads, the tax officials. When that is true, you may want to localize, decentralize and maintain your own Core, with your own people, at home. This re-localizing will re-establish the balance of power in the Periphery where most people live.