Jun 072020
 


Banksy June 2020

 

 

Coronavirus Shows Global Consequences Of China’s Local Censorship (SCMP)
More Than 140 Zuckerberg-Funded Scientists Want Facebook To Censor Trump (G.)
Cuba Sets Example With Successful Program To Contain Coronavirus (G.)
Brazil Govt Yanks Virus Death Toll As Data Befuddles Experts (AP)
China Would Make A Coronavirus Vaccine A ‘Global Public Good’ (R.)
FBI Pledge Allegiance to Black Lives Matter, Antifa (CTH)
Banksy: “It’s Not Their Problem, It’s Mine” (PA)
Walmart CEO Pledges $100 Million To Address Systemic Racism (Hill)
For Millennials And Women, The Jobs Report Was Catastrophic (ZH)
‘Never Say Never’ On ECB Buying Shares: Governing Council Member (R.)
Elmer Fudd Will Not Have A Gun In ‘Looney Tunes’ Reboot (Hill)
Mexico To Sit Out Extension Of OPEC+ Oil Output Cuts (R.)
DOJ, 50 State AGs Inn Push To Breakup Google’s Ad-Tech Dominance (ZH)
Judge In Epstein Grand Jury Case Has Ties To People Involved (Julie K. Brown)

 

 

The entire world increasingly retreats into echo chambers deeply buried in trenches, goaded onwards by mass value signaling and gaslighting. It is scary.

 

 

Total global cases surpassed 7,000,000.


Total global deaths surpassed 400,000.

 

 

Worldometer puts global new cases for June 5 at + 128,039.

My count from about 6 am EDT to 6 am EDT is+ 132,816 cases.

 

 

 

 

New cases past 24 hours in:

• US + 22,836
• Brazil + 30,488
• Russia + 8,984
• India + 10,086
• Pakistan + 4,960
• Chile + 5,246

 

 

Cases 7,004,814 (+ 132,816 from yesterday’s 6,871,728)

Deaths 402,665 (+ 4,002 from yesterday’s 398,663)

 

 

Note: Italy, Spain, France stripped out. They combine for 90,000 deaths.

 

 

 

 

 

 

 

From Worldometer yesterday evening -before their day’s close-:

 

 

From Worldometer:

 

 

From COVID19Info.live:

 

 

 

 

Interesting: other than in purely moral terms, to what degree does censorship hinder the world in finding a response to disasters like pandemics?

Coronavirus Shows Global Consequences Of China’s Local Censorship (SCMP)

China has the world’s highest number of internet users at over 854 million in 2019 according to the country’s Cyberspace Administration. However, its online world is confined within the so-called “Great Firewall”, and everything from criticism of the government to pornography is censored. Technology companies that run China’s social media platforms employ thousands of content moderators as censors and develop algorithms to prevent anything sensitive from being published or to quickly remove it, while foreign websites and social media platforms such Twitter, YouTube and Facebook are blocked.

[..] About 19 posts per 1,000 were removed – almost 700 from 37,226 – when China’s Centres for Disease Control published a paper in the New England Journal of Medicine on January 29 that indicated officials knew of human-to-human transmission of Covid-19 earlier than admitted. The authorities had previously claimed there was no evidence of human-to-human spread of the disease “so that’s why this was the top grievance”, Fu said. “There were a lot of people complaining and reacting to that paper.” News of the coronavirus became public on December 30, 2019, after screenshots from doctors’ chat groups warning about an unknown respiratory illness spread online. But police reprimanded some of the doctors who tried to raise the alarm, including Li Wenliang who later died from the disease, prompting a huge outpouring of public grief and anger.

Li’s death on February 7 prompted another spike in censorship with three posts per 1,000 – 117 out of 40,232 – relating to the topic being censored that day. Again, Fu said, what seemed like a low number was explained by the huge amount of posts and the fact that many would not have been detected by Weiboscope because they did not mention Li’s name to avoid the censors. Independent journalists have also been targeted, and two citizen journalists Chen Qiushi and Fang Bin are still missing after they disappeared in February after reporting from Wuhan, the city at the centre of the initial Covid-19 outbreak in China.

Research published in the journal Nature last month estimated that if strong intervention had been taken against Covid-19 in China a week earlier, cases could have been “dramatically reduced” by 66 per cent. Acting three weeks earlier, at the start of January, would have reduced the number of cases by 95 per cent, according to the paper by scientists from China, the United States and Britain. “Early warnings allow governments to take early action,” Fu said. “We find evidence that social media posts including early warnings to the public were censored especially in the early stage of the pandemic.”

Read more …

Would they like their own work censored as well? Or just the people they don’t agree with?

More Than 140 Zuckerberg-Funded Scientists Want Facebook To Censor Trump (G.)

More than 140 scientists funded by Mark Zuckerberg have said Facebook should not be letting Donald Trump use the social media platform to “spread both misinformation and incendiary statements”. The researchers, who include more than 60 professors at leading US research institutions and one Nobel laureate, sent the Facebook CEO a letter on Saturday asking him to “consider stricter policies on misinformation and incendiary language that harms people”, especially during the current turmoil over racial injustice. The letter calls the spread of “deliberate misinformation and divisive language” contrary to the researchers’ goals of using technology to prevent and eradicate disease, improve childhood education and reform the criminal justice system.

Their mission “is antithetical to some of the stances that Facebook has been taking, so we’re encouraging them to be more on the side of truth and on the right side of history, as we’ve said in the letter”, said Debora Marks of Harvard Medical School, one of three professors who organized it. The others are Martin Kampmann of the University of California, San Francisco, and Jason Shepherd of the University of Utah. All have grants from a Chan Zuckerberg Initiative program working to prevent, cure and treat neurodegenerative disorders including Alzheimer’s and Parkinson’s disease. They said the letter had more than 160 signatories. Shepherd said about 10% were employees of foundations run by Zuckerberg and his wife, Priscilla Chan.


The letter objects specifically to Zuckerberg’s decision not to act on a post by Trump that stated “when the looting starts, the shooting starts”. The letter’s authors called the post “a clear statement of inciting violence”.

Read more …

“..tens of thousands of family doctors, nurses and medical students to “actively screen” all homes on the island for cases of Covid-19 – every single day.”

Cuba Sets Example With Successful Program To Contain Coronavirus (G.)

The World Health Organization has identified Latin America as the new centre for coronavirus pandemic, but over the last two months, cases in Cuba have fallen. Cubans are now 24 times less likely to catch the virus than Dominicans, 27 times less likely to catch it than Mexicans, and more than 70 times less likely to be infected than Brazilians. Desperate for tourist revenue, Cuba closed its border later than most other countries in the region. But ever since the communist-ruled island shut out the outside world in late March, it has thrown everything but the kitchen sink at the virus. The state has commanded tens of thousands of family doctors, nurses and medical students to “actively screen” all homes on the island for cases of Covid-19 – every single day.


That means that from Monday to Sunday, Dr Caballero and her medical students must walk for miles, monitoring the 328 families on her beat. “There’s no other country in the hemisphere that does anything approaching this,” said William Leogrande, professor of government at American University in Washington DC. “The whole organization of their healthcare system is to be in close touch with the population, identify health problems as they emerge, and deal with them immediately. “We know scientifically that quick identification of cases, contact tracing and quarantine are the only way to contain the virus in the absence of a vaccine – and because it begins with prevention, the Cuban health system is perfectly suited to carry out that containment strategy.”

Read more …

Johns Hopkins depended on those numbers. Don’t know about Worldometer.

Brazil Govt Yanks Virus Death Toll As Data Befuddles Experts (AP)

Brazil’s government has stopped publishing a running total of coronavirus deaths and infections in an extraordinary move that critics call an attempt to hide the true toll of the disease in Latin America’s largest nation. The Saturday move came after months of criticism from experts saying Brazil’s statistics are woefully deficient, and in some cases manipulated, so it may never be possible to gain a real understanding of the depth of the pandemic in the country. Brazil’s last official numbers showed it had recorded over 34,000 deaths related to the coronavirus, the third-highest number in the world, just ahead of Italy. It reported nearly 615,000 infections, putting it at the second-highest, behind the United States. Brazil, with about 210 million people, is the globe’s seventh most populous nation.

On Friday, the federal Health Ministry took down a website that had showed daily, weekly and monthly figures on infections and deaths in Brazilian states. On Saturday, the site returned but the total numbers of infections for states and the nation were no longer there. The site now shows only the numbers for the previous 24 hours. Brazilian President Jair Bolsonaro tweeted Saturday that disease totals are “not representative” of the country’s current situation. A Bolsonaro ally contended to the newspaper O Globo that at least some states providing figures to the Health Ministry had sent falsified data, implying that they were exaggerating the toll. Carlos Wizard, a businessman expected to assume a high-level post in the Health Ministry, said the federal government would be conducting a review intended to determine a “more accurate” toll.


[..] A council of state health secretaries said it would fight the changes by Bolsonaro, who has dismissed the gravity of the coronavirus pandemic and tried to thwart attempts to impose quarantines, curfews and social distancing, arguing those steps are causing more damage to the economy than the pandemic. “The authoritarian, insensitive, inhumane and unethical attempt to make the COVID-19 deaths invisible will not prosper,” the health secretaries council said Saturday.

Read more …

US Senator Scott says they’ll do the opposite, even hinder western attempts at a vaccine.

China Would Make A Coronavirus Vaccine A ‘Global Public Good’ (R.)

China will increase international cooperation if it succeeds in developing a novel coronavirus vaccine, the science and technology minister said on Sunday. China would make a vaccine a “global public good” when it is ready, the minister, Wang Zhigang, told a news conference in Beijing.

[..] China is expending great efforts in the global scramble to develop a vaccine for the new coronaries epidemic that began in its central city of Wuhan, with Chinese researchers conducting five separate clinical trials on humans, or half of all such trials globally, according to the data compiled by the World Health Organization. President Xi Jinping vowed last month at the World Heath Assembly, the WHO’s governing body, that vaccines China’s develops will become a “global public good” once they are ready for use, and it will be China’s contribution to ensuring vaccine accessibility and affordability in developing countries.


Developing “a vaccine is still the fundamental strategy in our effort to overcome the new coronavirus,” Science and Technology Minister Wang Zhigang told a news conference in Beijing. But vaccine development is very difficult and takes time, he said, when asked how China would initially prioritise shots by country when a vaccine is found. “The rigour of vaccine development has been compared by some scientists to a dance involving precise steps and rehearsals,” Wang said.

Read more …

How right wing America views the issue. They feel betrayed by the FBI because of Comey, McCabe, Strzok, Lisa Page, Russiagate and the impeachment fiasco.

FBI Pledge Allegiance to Black Lives Matter, Antifa (CTH)

In a display of public unity with ‘The Movement’ writ large, FBI officials took a knee to declare their woke allegiance with the protesting mobs. With that visible display we now have a better understanding of the motives behind a history of FBI failures. Setting aside the optic that some members of the FBI looking more like ‘meal-team-6’, there was always a suspicion the FBI were more concerned about political correctness than actually doing the work of a federal investigative agency. Historically the FBI has failed miserably to stop domestic terror threats; and when the investigative failures are researched there’s usually a prior connection between the attackers and the FBI.

The father of the Orlando Pulse nightclub terrorist, Omar Mateen, was a guy named Seddique Mateen (you might remember seeing him at the Hillary Clinton rally). After Omar killed 49 people it was discovered that Seddique had been an FBI informant for over eleven years (2005 to 2016). Similarly, after the Parkland school shooting, it was discovered the FBI was fully aware of Nikolas Cruz, yet again they had taken no action. The exact same scenario had played out several years earlier when the FBI was warned about the Tsarnaev brothers before the Boston Marathon Bombing 2013 and yet they did nothing to stop it.


The FBI is now a political agency with police powers within the federal government. The activity of Lisa Page, Peter Strzok, James Comey, Andrew McCabe and a host of very familiar names has shown just how important politics is within the institution. Indeed, as we saw in the ridiculous Hillary Clinton investigation, politics was the prism for every decision; and protecting their ideological tribe was the biggest concern within the agency. Understanding the sensitivity behind the FBI to the Muslim community; a sensitivity almost identical to the expressed position of the democrat party apparatus; it should not come as a big surprise to see FBI agents ignoring terror threats and simultaneously taking a knee to show their allegiance with Black Lives Matter.

Read more …

The headline the Guardian used for this PA Media piece is “Banksy Supports Black Lives Matter With Latest Artwork”. But he doesn’t, or we don’t know if he does, not from his words. He supports black people, not some movement.

Banksy: “It’s Not Their Problem, It’s Mine” (PA)

Banksy has shown his support for the Black Lives Matter movement, saying “people of colour are being failed by the system”. The graffiti artist wrote in an Instagram post: “At first I thought I should just shut up and listen to black people about this issue. But why would I do that? It’s not their problem, it’s mine. “People of colour are being failed by the system. The white system. Like a broken pipe flooding the apartment of the people living downstairs. The faulty system is making their life a misery, but it’s not their job to fix it. They can’t, no one will let them in the apartment upstairs. “This is a white problem. And if white people don’t fix it, someone will have to come upstairs and kick the door in.”

Read more …

Walmart supports black people. What a joke that is.

A single Tweet says it all: “Walmart is the largest private employer of Black people in the US, is viciously anti-union, and pays poverty wages..”

Walmart CEO Pledges $100 Million To Address Systemic Racism (Hill)

Walmart CEO Doug McMillon is pledging to donate $100 million over five years to create a new center on racial equity following the death of George Floyd, a black man who died as a result of an arrest by Minneapolis police. In an email to employees Friday, McMillon condemned racial violence and said the company plans to make changes to fight for greater racial equity inside and outside of Walmart. “The global health crisis has tested all of us in recent months, and the racial violence in the U.S.— in particular, the murder of George Floyd — is tragic, painful and unacceptable,” McMillon wrote in the email. The Walmart CEO laid out several initiatives the company will undertake, including making the recruitment, development and support of African Americans inside the company “even more of a priority.”


The company will also invest in improving fairness, equity and justice in society broadly. “We will find the natural overlaps between Walmart’s core business and society’s larger needs that perpetuate racism and discrimination,” McMillon wrote. “Specifically, we’re going to focus the power of Walmart on our nation’s financial, healthcare, education and criminal justice systems.” McMillon said the center focused on racial equity “will seek to advance economic opportunity and healthier living, including issues surrounding the social determinants of health, strengthening workforce development and related educational systems, and support criminal justice reform with an emphasis on examining barriers to opportunity faced by those exiting the system.”

Read more …

Trump is so eager to praise the headline numbers that he forgets they are nonsense, and misses the opportunity to tell people to try harder.

For Millennials And Women, The Jobs Report Was Catastrophic (ZH)

There were clear problems with Friday’s “incredible” – as Trump put it – jobs report. First and foremost the BLS’ own admission there was a “survey error” which may have reduced the real unemployment rate by up to 3% as survey-takers mistakenly counted about 4.9 million temporarily laid-off people as employed, then moving through some very aggressive statistical assumption revisions to boost the “birth/death” model, the curious case of millions of “jobs” resurrected temporarily thanks to the PPP program: as recruitment firm LaSalle Network head Tom Gimbel said, today’s jobs report may offer a “false ray of light” because almost all job gains stemmed from furloughed employees kept on the books due to PPP loans (he said he was seeing real weakness in new hiring).


But even if one accepts the report at its face, if one digs beneath the glossy veneer, the details are anything but “incredible” as described by the president. Start with Trump’s “incredible” V-shaped rebound: after the 2.5mm new jobs added, total US employment is basically where it was at the depth of the financial crisis, while 21 million workers find themselves unemployed – this number was 6 million just two months ago. Putting that number in context, with roughly 133 million employed workers, there are a record 102 million Americans who are not in the labor force, of whom 92.7 million don’t even want a job.

Among those who were lucky enough to remain in the work force, millions were shifted from full to part-time.

[..] And here is the catalyst for the next round of social discontent: women unemployment is now far higher than that of men after being roughly the same before covid: how long before accusation of rampant employer sexism are the next big thing?

Read more …

Dangerous because clueless. Trying to revive the past, because that’s what got him his job.

‘Never Say Never’ On ECB Buying Shares: Governing Council Member (R.)

“Never say never” on the European Central Bank one day buying shares rather than government or corporate bonds, but it has not discussed the idea yet, ECB Governing Council member Robert Holzmann said in comments published on Sunday. The ECB on Thursday announced a bigger-than-expected expansion of its stimulus package to prop up an economy plunged by the coronavirus pandemic into its worst recession since World War Two. Holzmann took over as head of the Austrian National Bank just last year but has already been outspoken on various issues, calling for the ECB to lower its often-undershot inflation target and warning against negative rates. He also says he initially suggested that Thursday’s decision be put off.


“Never say never. If the need is there, this discussion will definitely have to take place. But currently that discussion does not exist,” Holzmann told newspaper Die Presse when asked if the ECB could start buying shares. On lowering the inflation target from just under 2%, Holzmann said he could still change his stance in a discussion that the ECB has pushed back because of the pandemic. “If it is difficult to get from 1.5% to 1.9%, then in a time of low inflation expectations one can also set oneself a different target, although I myself have not yet formed a final opinion here,” Holzmann said. “The fundamental discussion on ECB strategy has been postponed because of the crisis and should be taken up again as of the summer,” he added.

Read more …

How to make guns magically disappear.

Elmer Fudd Will Not Have A Gun In ‘Looney Tunes’ Reboot (Hill)

In a new series based on the beloved “Looney Tunes” cartoons, the classic character Elmer Fudd will no longer carry a gun. The new series “Looney Tunes Cartoons,” which premiered last week on the streaming service HBO Max, will feature the cartoon’s characteristic violence – using sticks of dynamite, booby traps and the iconic anvils and bank safes dropped onto characters, The New York Times reported last week. However, Peter Browngardt, the series executive producer and showrunner, told the outlet, “We’re not doing guns.” “But we can do cartoony violence — TNT, the Acme stuff. All that was kind of grandfathered in,” Browngardt told the outlet.


Elmer Fudd is regularly foiled trying to hunt Bugs Bunny on the show. In the new series, the character will carry a scythe. However, comics artist Johnny Ryan, who worked on the show, noted to the Times that he believes “We’re going through this wave of anti-bullying, everybody needs to be friends, everybody needs to get along.” “‘Looney Tunes’ is pretty much the antithesis of that,” he said. “It’s two characters in conflict, sometimes getting pretty violent.”

Read more …

OPEC+ meets COVID19. That was nnever going to be smooth.

Mexico To Sit Out Extension Of OPEC+ Oil Output Cuts (R.)

Mexico will not join other top oil producers in extending through July output cuts aimed at propping up the price of crude, Energy Minister Rocio Nahle said on Saturday. Made up of OPEC members and allies led by Russia, the group known as OPEC+ agreed in April to cut oil supply by 9.7 million barrels per day (bpd) in May and June to support prices. Under that deal, Mexico pledged to reduce its crude output by 100,000 bpd in May and June, after resisting pressure from other oil producers to make cuts of 400,000 bpd. The cuts had been due to taper to 7.7 million bpd from July to December, but on Saturday, OPEC+ agreed to extend the production cuts until the end of July.


Mexican President Andres Manuel Lopez Obrador, who has vowed to ramp up the country’s crude oil production, said on Friday that Mexico was not in a position to make additional cuts on top of what it had agreed in April. His energy minister Rocio Nahle confirmed Mexico would not participate in the fresh cuts agreed on Saturday. “There are other countries that extended their cuts to July, in this case we said no, we’ll stick to the agreement that we signed in April,” she told reporters in the eastern state of Veracruz. “There’s no problem.”

Read more …

They’re going to frustrate the CIA? I’ll believe it when I see it.

DOJ, 50 State AGs Inn Push To Breakup Google’s Ad-Tech Dominance (ZH)

In what would be a monumental move — and we might ad good for independent media breaking the shackles of the mainstream’s ongoing attempts to police content and punish dissent — Google’s total dominance over online advertising could soon come to an end. CNBC revealed Friday that no less than 50 sate attorneys general have been investigating Google’s business practices as part of a months long probe alongside a parallel DOJ effort, and momentum is gaining toward a looming major antitrust lawsuit against the internet giant. Leading the probe among the states is Texas Attorney General Ken Paxton, who did not comment in Friday’s CNBC report.

Google, however, did respond, with a Google spokesperson rebutting with, “The facts are clear, our digital advertising products compete across a crowded industry with hundreds of rivals and technologies, and have helped lower costs for advertisers and consumers.” President Trump has lately put big tech in the spotlight over allegations of targeted censorship of conservative content, lately signing an executive order which seeks to reduce liability protections of major internet companies like Twitter, Facebook, and Google. Independent and alternative voices have also long complained of being demonetized or unfairly targeted for analysis and commentary falling outside of accepted ‘groupthink’.


It remains that the bulk of Google’s some $161 billion in revenue comes via ad sales, with a far smaller amount coming through products the tech giant and its parent company Alphabet Inc. are traditionally known for: software and technology. CNBC summarizes what’s at stake as follows: “Critics have said that Google bundles its ad tools so that rivals can’t afford to match its offerings and that its operation of search results, YouTube, Gmail and other services to hinder ad competition. They also say that Google owns all sides of the “auction exchange” through which ads are sold and bought, giving it an unfair advantage.” But a key legal obstacle the courts would have to consider is the fact that Google’s ad group doesn’t function as a stand alone business, but is made up of Google Ads, Google Marketing Platform, and Google Ad Manager.

Read more …

Julie K. Brown at the Miami herald is back. Worse than any fantasy, or book, or movie.

Judge In Epstein Grand Jury Case Has Ties To People Involved (Julie K. Brown)

The Palm Beach judge who has thus far refused to release grand jury records in the Jeffrey Epstein case has both professional and family ties to three of the politicians who have a stake in keeping those records secret, the Miami Herald has learned. Krista Marx, the Palm Beach chief judge who also heads a panel that polices judicial conduct, has potential conflicts of interest involving three prominent players embroiled in the Epstein sex-trafficking saga: State Attorney Dave Aronberg, who has been sued by the Palm Beach Post to release the grand jury records; Sheriff Ric Bradshaw, whose department’s favored treatment of Epstein while he was in the Palm Beach County jail is part of an ongoing state criminal investigation; and ex-State Attorney Barry Krischer, part of the same investigation in connection with his decision not to prosecute Epstein on child-sex charges.

Special prosecutors appointed by Florida Gov. Ron DeSantis went to court in January to unseal records of Krischer’s secret 2006 state grand jury presentment in the case. Prosecutors wanted to examine whether Krischer’s office told the panel the full scope of Epstein’s crimes, or whether state prosecutors kept key evidence from the grand jury. The grand jury returned a minor charge of solicitation of prostitution against Epstein, who later managed to negotiate a lenient plea deal, resulting in him serving 13 months in the Palm Beach County Jail, much of at his lavish office in West Palm Beach, thanks to generous work-release provisions.

Last year, following a series of stories in the Miami Herald detailing the machinations behind Epstein’s plea deal, DeSantis ordered a state criminal probe focusing on Krischer’s decision not to prosecute and on Bradshaw’s role in helping Epstein maintain an opulent lifestyle — including having sex with women — while subject to sheriff’s custody on sex charges. But Marx in January rejected the criminal prosecutors’ effort to unseal the grand jury records, calling it a “fishing expedition.’’ Then on Wednesday, she rebuffed a similar request by attorneys representing the Post, who sued Aronberg, and the county clerk, Sharon Bock, for release of the records.

Marx was dismissive of the Post’s lawsuit against Aronberg, who has denied he has custody of the grand jury records; and Bock, who has custody of the records but won’t release them without a court order. Marx, however, did not disclose from the bench that Krischer was her former boss, that her daughter works for Aronberg as an assistant state attorney and that her son works for Bradshaw as a sheriff’s deputy. Marx’s husband, Palm Beach County Judge Joe Marx, has a disclosure on his county web page stating he would recuse himself from any cases that involve his two stepchildren. Krista Marx’s county web page does not have such a disclosure.

Read more …

 

 

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Jun 062020
 


F.A. Loumis Independence Day 1906

 

Just 20% Of Coronavirus Cases Responsible For 80% Of Transmissions (RT)
Hydroxychloroquine Does Not Cure COVID19, Say Drug Trial Chiefs (G.)
A Second Major COVID Study Is Retracted (Newser)
UK Care Home Residents Face Steep Hike In Fees (BBC)
Bill Gates Dismisses ‘Bizarre’ COVID19 Conspiracy Theories (RT)
Tidal Wave Of Defaults And Evictions Looms (NPR)
Surprise: The BLS Admits Another Phony Jobs Report (Mish)
Biden Clinches Nomination, Readies For Fall Showdown With Trump (JTN)
Biden: 10-15% of Americans Are ‘Not Very Good People’ (JTN)
Lisa Page Is The New National Security And Legal Analyst At NBC News
Senate Approves 35 Subpoenas for Obama Administration Officials (NBC)
Letter From Lt. Gen. Michael T. Flynn, ‘I Am Not Done’ (SAC)

 

 

Worldometer puts global new cases for June 5 at + 130,529. Another record.

 

Note: I count not from midnight GMT to midnight GMT, as they do, but from about 6 am EDT to 6 am EDT.

My count over the past 24 hours is over + 147,000 cases.

 

 

New cases past 24 hours in:

• US + 25,393
• Brazil + 30,136
• Russia + 8,855
• India + 9,944
• Pakistan + 8,719
• Mexico + 4,346

 

 

 

 

 

Cases 6,871,728 (+ 147,632 from yesterday’s 6,724,096)

Deaths 398,663 (+ 5,110 from yesterday’s 393,553)

 

 

 

From Worldometer yesterday evening -before their day’s close-:

 

 

From Worldometer:

 

 

From COVID19Info.live:

 

 

 

 

 

 

I don’t suffer from insanity, I enjoy every minute

 

 

Superspreaders are simply people stupid enough to socialize a lot in long lasting events in closed spaces. That’s why “..roughly 80 percent of the effects come from 20 percent of the causes.”

Just 20% Of Coronavirus Cases Responsible For 80% Of Transmissions (RT)

The latest research into so-called “superspreader events” could inform public policy across the world, to help fight the widely feared “second wave” of coronavirus infections, but without the need for strict lockdowns. A “superspreader” is an infected person who transmits a virus to a large number of people. A growing body of evidence has found that superspreaders account for the vast majority of coronavirus transmissions. In the latest study on superspreaders, epidemiologists in Hong Kong analyzed over 1,000 coronavirus cases between January 23 and April 28, and found that just 20 percent of cases were responsible for 80 percent of total transmissions, data which could impact policy around the world. About 350 of the cases were community transmissions, while the rest were imported cases.

More than 50 percent of the community transmission cases were traced back to just six superspreader events, all of which involved indoor social gatherings that lasted several hours. “Superspreading events are happening more than we expected, more than what could be explained by chance. The frequency of superspreading is beyond what we could have imagined,” Ben Cowling, one of the study’s co-authors said. The study also found that 70 percent of infected people did not pass the virus to anyone else, further highlighting the need for a highly targeted response to defeating the pandemic. The work has yet to undergo peer review, but joins a growing body of work indicating the particular method of transmission which has spread the coronavirus to every corner of the globe, with disastrous consequences. If corroborated, however, this research could inform future public policy across the world.

Among the Hong Kong superspreading events studied, each ‘superspreader’ coronavirus carrier infected three times the average infection rate. The majority of the superspreader cases were traced back to a wedding, an event at a temple, and several bars in Hong Kong’s Lan Kwai Fong district. “You might be wondering if our study, or the experience of Hong Kong, with its small number of total infections, is more broadly representative. We think so,” Cowling wrote, referring to a widely studied phenomenon known as the “80-20 rule” or the “Pareto principle,” in which, for many events, roughly 80 percent of the effects come from 20 percent of the causes.

[..] One model from researchers at the London School of Hygiene and Tropical Medicine took it one step further and suggested just 10 percent of coronavirus cases may have accounted for at least 80 percent of transmissions worldwide. Similar results were found in coronavirus research conducted in Israel and China.

Read more …

Two “studies” embarrassingly flattened but they just keep on coming.

Again, nobody of any importance to the discussion has ever claimed HCQ cures COVID19. Why keep referring to that? It is not a vaccine, there is no claim to that. Remember, meanwhile remdesivir is being touted because it MIGHT shorten hospital stays by a few days.

As for this trial: there is no data in this piece on the stage at which patients wre given HCQ. If they were already severely sick, it would have been too late. Also, no mention of zinc.

Why do all these medical professionals volunteer to look ridiculous?

Hydroxychloroquine Does Not Cure COVID19, Say Drug Trial Chiefs (G.)

Hydroxychloroquine does not work against Covid-19 and should not be given to any more hospital patients around the world, say the leaders of the biggest and best-designed trial of the drug, which experts will hope finally settle the question. “If you are admitted to hospital, don’t take hydroxychloroquine,” said Martin Landray, deputy chief investigator of the Recovery trial and professor of medicine and epidemiology at Oxford University. “It doesn’t work.” Many countries have permitted emergency use of the drug for Covid-19 patients in hospitals, following claims from a few doctors, including Didier Raoult in France, that it was a cure, and the ensuing clamour from the public. President Donald Trump backed the drug, saying it should be given to patients, and later said he was personally taking it to protect himself from the virus.

Landray said the hype should now stop. “It is being touted as a game-changer, a wonderful drug, a breakthrough. This is an incredibly important result, because worldwide we can stop using a drug that is useless.” The first results from the Recovery trial, which has been testing seven therapies for Covid-19, swiftly followed the retraction of a paper in the Lancet medical journal on Thursday night claiming that hydroxychloroquine was linked to an increased risk of death in Covid-19 patients. The authors of the paper withdrew it after the US company Surgisphere refused to cooperate with an independent audit of the data it had supplied for the study.

Supporters of the drug hailed the paper’s retraction, but the World Health Organization and countries that have authorised use of the drug are now likely to change their position. The Recovery trial is a “gold standard” randomised controlled trial, designed to find an answer to a question by recruiting patients in similar circumstances either to take the drug or to take a placebo. Their doctors and the researchers do not know which ones are taking the genuine trial drug.

[..] Since March, when the trial began, a total of 1,542 patients had been randomised to receive hydroxychloroquine, while 3,132 patients were randomised to receive only normal care. Over 28 days, 25.7% of patients on hydroxychloroquine died, compared with 23.5% of the others. The difference is not statistically significant – it could have arisen by chance. But the clear conclusion was that hydroxychloroquine did not work, said the researchers.

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“.. I did not do enough to ensure that the data source was appropriate for this use..”

Fire the man, defund him. He never saw the data or the sources, he simply believed what he was fed because it served his purposes and those of his funders.

A Second Major COVID Study Is Retracted (Newser)

First, the esteemed Lancet medical journal retracted a major study on Thursday about hydroxychloroquine. Then, the New England Journal of Medicine did the same with another big study related to COVID-19 and blood pressure drugs. Both retractions have a common denominator: They relied on data supplied by a US analytics company called Surgisphere, which is coming under increasing scrutiny over the credibility of its international database. The Lancet study had cast doubt on the effectiveness of the anti-malarial drugs hydroxychloroquine and chloroquine as a coronavirus treatment, reports the Wall Street Journal. The retraction is now renewing the hope that the drugs (highly touted by President Trump) can work safely after all, and the World Health Organization already has said it would resume trials, notes the New York Times.


“It is now clear to me that in my hope to contribute to this research during a time of great need, I did not do enough to ensure that the data source was appropriate for this use,” says Harvard’s Mandeep Mehra, who was the lead author of both studies. “For that, and for all the disruptions—both directly and indirectly—I am truly sorry.” Both studies listed as a co-author Surgisphere founder/CEO Sapan Desai, whose name appears only on the NEMJ retraction. His company claims to have collected patient data from hospitals all over the world, but now red flags are going up. The Journal, for instance, got in touch with a dozen big US hospitals, and none shared patient data with the company. Surgisphere previously said it couldn’t name the 671 hospitals in the Lancet study out of privacy concerns. The controversy illustrates the rushed state of research amid the pandemic, notes the Times.

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It’s cheaper to die, gramps.

UK Care Home Residents Face Steep Hike In Fees (BBC)

Some older people in care homes are being asked to pay more than £100 a week extra in fees to cover the costs of coronavirus. Age UK said residents who pay their own fees are facing the bills to pay for protective gear and rising staff costs. It adds “insult to injury” for people who have “been through the mill” during the pandemic, the charity said. The government said it provided £600m for infection control in care homes and £3.2bn for wider council services. Care home residents who fund themselves have effectively subsidised the care system for many years, paying far more for their support than those funded by their local authority.


Age UK says on average these residents are charged just over £850 pounds a week, and some are now seeing their fees rise by 15%. It is not clear how many care homes have asked self-funding residents to pay more. There are 400,000 people estimated to be living in care homes in England, with 167,000 believed to be self-funders and 45,000 part self-funders. Caroline Abrahams, director of Age UK, said older people and their families have “been through the mill” in recent months as outbreaks occurred in one in three care homes. “It is adding insult to injury that after going through so much, some residents who pay for their own care are now facing a big extra bill – on top of already expensive fees.”

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The bogeyman speaketh. Extreme fear ensues.

Bill Gates Dismisses ‘Bizarre’ COVID19 Conspiracy Theories (RT)

“It’s almost hard to deny this stuff because it’s so stupid or strange that even to repeat it gives it credibility,” Gates said on numerous conspiracy theories swirling around him since the coronavirus crisis began and he became an outspoken champion for a vaccine. The Bill & Melinda Gates Foundation has just recently pledged $1.6 billion to vaccine alliance group Gavi, which will use the money to immunize children in poorer nations. Conspiracy theories linking Gates to the origins of Covid-19 or arguing he wants to track citizens through microchips under the guise of ensuring they are vaccinated against the virus were mentioned over a million times before May, according to Zignal Labs, a media analytics company.

The theories continue to swirl around social media and a poll from Yahoo News/YouGov from late last month even found 28 percent of respondents believed Gates wanted to use the coronavirus as an excuse to track and store their information. Among Republican respondents, that percentage was even higher. “I’ve never been involved in any microchip type thing,” Gates said, calling the poll results “concerning.” He did admit “data systems” would be a good idea to track a Covid-19 vaccine, but “there’s no chips or anything like that.” Gates has thrown his support behind a “national tracking system.” Concerns and theories about Gates’ influence have only intensified as his standing in the world has increased.

Already the second richest man on the planet with a net worth of about $100 billion, he is about to become the largest donor to the WHO, a position previously held by the US before President Donald Trump cut ties with the international group over their handling of the pandemic. In the last two years, the Bill and Melinda Gates Foundation has accounted for over 12 percent of the WHO’s budget, which equates to approximately $530 million, according to Devex. It is followed by Gavi alliance (8.18 percent) that the foundation also sponsors. The US gave slightly more in that time frame with payments equalling around $890 million. Lawrence Gostin the director of WHO’s Collaborating Center on National and Global Health Law, told Devex the potential of a private foundation becoming the largest donor to the organization could be “transformational.” “It would enable a single rich philanthropist to set the global health agenda,” he said.

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Storm warning.

Tidal Wave Of Defaults And Evictions Looms (NPR)

Americans are skipping payments on mortgages, auto loans and other bills. Normally, that could mean massive foreclosures, evictions, cars repossessions and people’s credit getting destroyed. But much of that has been put on pause. Help from Congress and leniency from lenders have kept impending financial disaster at bay for millions of people. But that may not last for long. The problem is that these efforts aim to create a financial bridge to the future for people who’ve lost their income in the pandemic — but the bridge is only half-built.

[..] millions of people are getting help from all kinds of lenders. According to the latest available numbers from the credit bureau TransUnion, about 3 million auto loans and 15 million credit card accounts are in some kind of program to let people skip or make partial payments. Those are probably low estimates. According to the analytics company Black Knight, 4.75 million homeowners — or 9% of all mortgages — have entered into forbearance plans. Lawmakers don’t want these delayed payments to hurt credit scores. Congress mandated that people who were current on their payments before the outbreak should still be reported as current on their payments while in a hardship program. And that appears to working for now.

“What we’re seeing consistently across the board is actually credit scores are moving upward,” says Matthew Komos, a vice president at TransUnion. He says that’s both on a month-to-month and year-over-year basis. But looking ahead, advocates say people could run into big trouble because the terms of these hardship programs can be all over the map. “Credit cards, auto loans, installment loans, there are no federal guidelines,” says Aracely Panameño, a director at the nonprofit Center for Responsible Lending. She says when it comes time to make up for all those skipped payments, there are federal rules for repayment plans for home mortgages but not for many other types of loans. So she says lawmakers need to protect people. Otherwise, she says, lenders could make demands beyond what people can afford. “You must have a capacity to catch up with your payments in an affordable way,” Panameño says.

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Hard to believe the BLS is still paid for their reports.

Surprise: The BLS Admits Another Phony Jobs Report (Mish)

BLS Admits Another Error “In the household survey, individuals are classified as employed, unemployed, or not in the labor force based on their answers to a series of questions about their activities during the survey reference week (May 10th through May 16th). Workers who indicate they were not working during the entire survey reference week and expect to be recalled to their jobs should be classified as unemployed on temporary layoff. In May, a large number of persons were classified as unemployed on temporary layoff. However, there was also a large number of workers who were classified as employed but absent from work. As was the case in March and April, household survey interviewers were instructed to classify employed persons absent from work due to coronavirus-related business closures as unemployed on temporary layoff.”

“However, it is apparent that not all such workers were so classified. BLS and the Census Bureau are investigating why this misclassification error continues to occur and are taking additional steps to address the issue. If the workers who were recorded as employed but absent from work due to “other reasons” (over and above the number absent for other reasons in a typical May) had been classified as unemployed on temporary layoff, the overall unemployment rate would have been about 3 percentage points higher than reported (on a not seasonally adjusted basis). However, according to usual practice, the data from the household survey are accepted as recorded. To maintain data integrity, no ad hoc actions are taken to reclassify survey responses.”


Job Revisions The change in total nonfarm payroll employment for March was revised down by 492,000, from -881,000 to -1.4 million, and the change for April was revised down by 150,000, from -20.5 million to -20.7 million. With these revisions, employment in March and April combined was 642,000 lower than previously reported. [..] Total nonfarm payroll employment fell by 20.5 million in April, and the unemployment rate rose to 14.7 percent, the U.S. Bureau of Labor Statistics reported today.

The official unemployment rate is 13.3%. However, if you start counting all the people who want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a closer picture of what the unemployment rate is. That number is in the last row labeled U-6. U-6 is much higher at 21.2%. Both numbers would be way higher still, were it not for millions dropping out of the labor force over the past few years.

It’s important to put the jobs numbers into proper perspective. In the household survey, if you work as little as 1 hour a week, even selling trinkets on eBay, you are considered employed. In the household survey, if you work three part-time jobs, 12 hours each, the BLS considers you a full-time employee. In the payroll survey, three part-time jobs count as three jobs. The BLS attempts to factor this in, but they do not weed out duplicate Social Security numbers. The potential for double-counting jobs in the payroll survey is large.


The payroll survey (sometimes called the establishment survey) is the headline jobs number, generally released the first Friday of every month. It is based on employer reporting. The household survey is a phone survey conducted by the BLS. It measures unemployment and many other factors. If you work one hour, you are employed. If you don’t have a job and fail to look for one, you are not considered unemployed, rather, you drop out of the labor force. Looking for jobs on Monster does not count as “looking for a job”. You need an actual interview or send out a resume. These distortions artificially lower the unemployment rate, artificially boost full-time employment, and artificially increase the payroll jobs report every month.

Read more …

The article says “Biden said”. But we have seen 1000 times now that Biden is incapable of stringing more than 3 words together (one more time below).

So it’s not “Biden said”, but “Biden’s handlers said”.

Biden Clinches Nomination, Readies For Fall Showdown With Trump (JTN)

Former Vice President Joe Biden on Friday night officially clinched the Democratic nomination for president, setting up a fall showdown with President Trump. Biden secured enough delegates in Tuesday’s round of primaries to finish with 1,993, two more than needed to secure the nomination at the party’s convention in Milwaukee in August, The Associated Press announced. The former vice president and senator immediately issued a statement laying out his vision for the fall campaign.


“It was an honor to compete alongside one of the most talented groups of candidates the Democratic party has ever fielded — and I am proud to say that we are going into this general election a united party,” Biden said. “I am going to spend every day between now and November 3rd fighting to earn the votes of Americans all across this great country so that, together, we can win the battle for the soul of this nation, and make sure that as we rebuild our economy, everyone comes along.”

Read more …

A comment made after calling Trump a “divisive leader”. Biden trying for Hillary 2.0.

Biden: 10-15% of Americans Are ‘Not Very Good People’ (JTN)

Presumed Democratic presidential candidate Joe Biden says that 10-15% of Americans are “not very good people.”Biden made the comment late Thursday during an online campaign event that he was having with black supporters, moderated by actor Don Cheadle. The conversation centered on race relations in America in the wake of the death of George Floyd in police custody on Memorial Day.


The former vice president was explaining his belief that President Trump has been a divisive leader and that while “the vast majority” of Americans are honorable people, “there are probably anywhere from 10 to 15% of the people out there that are just not very good people.” Biden has been criticized for his tendency to make gaffes during public appearances. This comment, in particular, is reminiscent of Hillary Clinton’s widely panned statement on half of Trump supporters being a “basket of deplorables,” whose ideas and actions were “racist, sexist, homophobic, xenophobic, Islamophobic”.

Read more …

Life imitates Bizarro World.

Robert Mueller’s office deleted 19,000 text messages between Lisa Page and her lover Peter Strzok. Why?

Lisa Page Is The New National Security And Legal Analyst At NBC News (DC)

Former FBI lawyer Lisa Page is the new national security and legal analyst for NBC News and MSNBC, the network announced Friday. “We’re very happy to welcome to our network Lisa Page, former FBI lawyer who worked as special counsel for Robert Mueller’s legal team,” Nicolle Wallace said. “She worked on the Russian government disinformation probe and on the Hillary Clinton email investigation.” Page was discovered in 2017 to be having an affair with former FBI agent Peter Strzok, who worked on special counsel Robert Mueller’s investigation before he was removed for showing bias against President Donald Trump in text messages exchanged with Page.


Thousands of the lovers’ text messages, which were sent on agency-issued phones, were released by the Department of Justice (DOJ) and FBI in 2017. Page sued the DOJ and FBI for releasing her text messages, alleging that it was “illegal.” Page testified in July 2018 that the FBI did not see strong evidence of Russian collusion with President Donald Trump 10 months after beginning its investigation. She worked on the Mueller probe before evidence of her affair led to her dismissal from the team. Page spoke in an interview with The Daily Beast in December 2019, asserting that “there’s no fathomable way” she “committed any crime at all.”

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It’ll be a fun summer, but more bizarre than you’ve ever imagined.

Senate Approves 35 Subpoenas for Obama Administration Officials (NBC)

The Senate Homeland Security Committee on Thursday authorized the issuing of nearly three dozen subpoenas of Obama administration officials as part of Senate Republicans’ investigation into the origins of the FBI and special counsel probe into Russian interference in the 2016 election and the Trump campaign. The Judiciary Committee, meanwhile, met to consider more than 50 additional subpoenas, but postponed action until next week. Republicans on the panels are looking into flaws in FISA application process, the “unmasking” of Trump campaign and transition officials, including ex-national security adviser Michael Flynn, and the FBI’s investigation of the Trump campaign more broadly — actions that President Donald Trump has collectively dubbed “Obamagate” and dismissed as a “hoax” and a “witch hunt.”


[..] The Homeland Security and Judiciary committees are considering issuing subpoenas for former CIA Director John Brennan, ex-Director of National Intelligence James Clapper, former FBI Director James Comey, former Obama chief of staff Dennis McDonough, former national security adviser Susan Rice and ex-FBI officials Peter Strzok and Lisa Page. The Judiciary panel is also considering subpoenas for current FBI Director Christopher Wray and former Justice Department officials, including former Attorney General Loretta Lynch and ex-FBI Deputy Director Andrew McCabe. Judiciary member Ted Cruz, R-Texas, asked Democrats on the panel to consider how they would feel if the situation were reversed and the Trump administration were looking into the former Vice President Joe Biden’s presidential campaign.

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“..if the United States wants to survive the onslaught of socialism..

Letter From Lt. Gen. Michael T. Flynn, ‘I Am Not Done’ (SAC)

Former National Security Advisor Lt. Gen. Michael T. Flynn, who has been fighting the courts to have his case thrown out, said “I am not done’ in an email to a journalist that was posted Friday on Twitter that “I am not done.” Flynn’s inference is important, as evidence discovered this year by the Justice Department has revealed that the three star general was allegedly set up by bureau agents investigating President Donald Trump’s 2016 campaign and their debunked theory that the campaign conspired with Russia. The Justice Department asked the court last month to drop the charges against Flynn and people from all across the country are fighting on his behalf. Flynn hasn’t spoken publicly in years. In fact, the first time people heard from the three star general was when he withdrew his guilty plea months ago, through his lawyer, Sidney Powell.


“This letter means that Lt. Gen. Flynn has not given up on the country and neither should you,” a very close friend of Flynn’s told me on Friday. The friend said it was in response to the growing unrest in the country and a warning that Americans need to be involved in the political process. He wrote the email to Scott Kesterson, a documentary filmmaker and journalist that spent 3 and half years in Afghanistan. Flynn warned ‘if the United States wants to survive the onslaught of socialism, if we are to continue to enjoy self-government, to secure the God-given individual blessings of liberty for ourselves, for our families, then good Americans must accept that each has a moral obligation to participate in the political life of our country.”

Read more …

 

 

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Jan 062018
 
 January 6, 2018  Posted by at 10:36 am Finance Tagged with: , , , , , , , , , , ,  4 Responses »


Pablo Picasso Acrobat 1930

 

UPDATE: There still seems to be a problem with our Paypal widget/account that makes donating -both for our fund for homless and refugees in Greece, and for the Automatic Earth itself- hard for some people. What happens is that for some a message pops up that says “This recipient does not accept payments denominated in USD”. This is nonsense, we do. We notified Paypal weeks ago.

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Investors Should Be ‘Terrified’ About Dow 25,000 (CNBC)
QE Party Over, Even by the Bank of Japan (WS)
Why You Should Embrace the Twilight of the Debt Bubble Age (Gordon)
US Created Only 148,000 Jobs In December vs 190,000 Jobs Expected (CNBC)
Big Tech Will Get Bigger In 2018, While Smaller Players Look For Exits (CNBC)
Pension Fund Members Don’t Know Their Plans Are Underfunded (TA)
US Households May Rue Their Spending Exuberance Of 2017 (BBG)
Ghost of Weimar Looms Over German Politics (BBG)
Twitter Says World Leaders Like Trump Have Special Status (R.)
Trump Isn’t Another Hitler. He’s Another Obama. (CJ)
Fire and Fury (Jim Kunstler)
Trump Book Author Says His Revelations Will Bring Down US President (R.)

 

 

“”In the first three versions of the Goldilocks story, Goldilocks actually died horribly..”

Investors Should Be ‘Terrified’ About Dow 25,000 (CNBC)

Wall Street’s eye-popping gains should be of great concern to global investors, an analyst told CNBC on Friday. The Dow Jones industrial average broke above 25,000 on Thursday for the first time, following the release of stronger-than-expected jobs data. In terms of trading days, it was the fastest 1,000-point gain to a round number in the Dow’s history. The 30-stock index broke above 24,000 on Nov. 30, 23 trading days earlier. It took the Dow 24 trading days to go from 20,000 to 21,000 last year. “We’re really terrified,” Paul Gambles, managing partner at MBMG Group, told CNBC. When asked why he believed traders should avoid investing in stocks given the “Goldilocks” global growth conditions, Gambles said: “In the first three versions of the Goldilocks story, Goldilocks actually died horribly, and we think that could well happen again [to stocks].”

Gambles said that collective global growth at the level seen through 2017 was the GDP equivalent to a “blow-off top.” He added that similar levels of concerted worldwide growth were seen during previous financial crises and therefore the current risk to investors is “exponential.” The Dow gained 152 points on Thursday to 25,075, while the broader S&P 500 and tech-heavy Nasdaq also hit milestones. Earlier Thursday, ADP and Moody’s Analytics reported that the U.S. private sector added 250,000 jobs in December, well above the expected 190,000. In 2017, prices were supported by a rebound in global economic growth and renewed investor optimism that looming corporate tax cuts would result in bigger dividends and share buybacks. A low interest rate environment was also believed to make stocks a relatively attractive investment.

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All central banks making the same moves, except perhaps for China. Rattling nerves.

QE Party Over, Even by the Bank of Japan (WS)

An amazing – or on second thought, given how central banks operate, not so amazing – thing is happening. On one hand… Bank of Japan Governor Haruhiko Kuroda keeps saying that the BOJ would “patiently” maintain its ultra-easy monetary policy, so too in his first speech of 2018 in Tokyo, on January 3, when he said the BOJ must continue “patiently” with this monetary policy, though the economy is expanding steadily. The deflationary mindset is not disappearing easily, he said. On December 20, following the decision by the BOJ to keep its short-term interest-rate target at negative -0.1% and the 10-year bond yield target just above 0%, he’d brushed off criticism that this prolonged easing could destabilize Japan’s banking system. “Our most important goal is to achieve our 2% inflation target at the earliest date possible,” he said.

On the other hand… In reality, after years of blistering asset purchases, the Bank of Japan disclosed today that total assets on its balance sheet actually inched down by ¥444 billion ($3.9 billion) from the end of November to ¥521.416 trillion on December 31. While small, it was the first month-end to month-end decline since the Abenomics-designed “QQE” kicked off in late 2012. Under “QQE” – so huge that the BOJ called it Qualitative and Quantitative Easing to distinguish it from mere “QE” as practiced by the Fed at the time – the BOJ has been buying Japanese Government Bonds (JGBs), corporate bonds, Japanese REITs, and equity ETFs, leading to astounding month-end to month-end surges in the balance sheet. But now the “QQE Unwind” has commenced. Note the trend over the past 12 months and the first dip (red):

JGBs, the largest asset class on the BOJ’s balance sheet, fell by ¥2.9 trillion ($25 billion) from November 30 to ¥440.67 trillion on December 31. In other words, the BOJ has started to unload JGBs – probably by letting them mature without replacement, rather than selling them outright. Some other asset classes on its balance sheet increased, including equity ETFs, Japanese REITs, “Loans,” and “Others” On net, and from a distance, the first decrease of the BOJ’s assets in the era of Abenomics was barely noticeable. Total assets are still a massive pile, amounting to about 96% of Japan’s GDP (the Fed’s balance sheet amounts to about 23% of US GDP):

[..] None of this – neither the 12 months of “tapering” nor now the “QQE Unwind” – was announced. They happened despite rhetoric to the contrary. During peak QQE, the 12-month period ending December 31, 2016, the BOJ added ¥93.4 trillion (about $830 billion) to its balance sheet. Over the 12-month period ending December 31, 2017, it added “only” ¥44.9 trillion to its balance sheet. That’s down 52% from the peak. This chart shows the rolling 12-month change in the balance sheet in trillion yen, going back to the Financial Crisis:

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You might as well. But do get out of the way.

Why You Should Embrace the Twilight of the Debt Bubble Age (Gordon)

People are hard to please these days. Clients, customers, and cohorts – the whole lot. They’re quick to point out your faults and flaws, even if they’re guilty of the same derelictions. The recently retired always seem to have the biggest axe to grind. Take Jack Lew, for instance. He started off the New Year by sharpening his axe on the grinding wheel of the GOP tax bill. On Tuesday, he told Bloomberg Radio that the new tax bill will explode the debt and leave people sick and starving. “It’s a ticking time bomb in terms of the debt. “The next shoe to drop is going to be an attack on the most vulnerable in our society. How are we going to pay for the deficit caused by the tax cut? We are going to see proposals to cut health insurance for poor people, to take basic food support away from poor people, to attack Medicare and Social Security. One could not have made up a more cynical strategy.”

The tax bill, without question, is an impractical disaster. However, that doesn’t mean it’s abnormal. The Trump administration is merely doing what every other administration has done for the last 40 years or more. They’re running a deficit as we march onward towards default. We don’t like it. We don’t agree with it. But how we’re going to pay for it shouldn’t be a mystery to Lew. We’re going to pay for it the same way we’ve paid for every other deficit: with more debt. Of all people, Jack Lew should know this. If you recall, Lew was the United States Secretary of Treasury during former President Obama’s second term in office. Four consecutive years of deficits – totaling over $2 trillion – were notched on his watch.

[..] In truth, no one really cares about deficits and debt. Not former Treasury Secretary Jack Lew. Not current Treasury Secretary Steven Mnuchin. Not Trump. Not Obama. Not your congressional representative. Not Dick Cheney. Plain and simple, unless there are political points to score like Lew was aiming for this week, no one gives a doggone hoot about the debt problem. That’s a problem for tomorrow. Not today. Quite frankly, everyone loves government debt – DOW 25,000! Aging baby boomers know they need massive amounts of government debt to pay their social security, medicare, and disability checks. On top of that, many employed workers are really on corporate welfare. They’re dependent upon the benevolence of government contracts to provide their daily bread.

What’s more, in this crazy debt based fiat money system, the debt must perpetually increase or the whole financial system breaks down. Specifically, more debt is always needed to keep asset prices inflated and the wealth mirage visible. By providing a quick burst to the rate of debt increase, President Trump expects to get a quick burst to the rate of GDP growth. We suspect President Trump and his followers will be underwhelmed by what effect, if any, the tax cuts have on the economy. Time will tell. In the meantime, don’t fret about government deficits and debt. The political leaders may say deficits don’t matter. But they do matter. In fact, soon they’ll matter a lot. We’re in the twilight of the debt bubble age. Embrace it. Love it. What choice do you have, really?

Read more …

The drop in retail jobs in the holiday season stands out.

US Created Only 148,000 Jobs In December vs 190,000 Jobs Expected (CNBC)

The U.S. economy added a disappointing 148,000 jobs in December while the unemployment rate held at 4.1%, according to a closely watched Labor Department report Friday. Economists surveyed by Reuters had been expecting nonfarm payrolls to grow by 190,000. The total was well below the November pace of 252,000, which was revised up from the initially reported 228,000. An unexpected loss of 20,000 retail positions during the holiday season held back the headline number. The unemployment rate for blacks fell to 6.8%, its lowest ever. “A little bit of a disappointment when you only get 2,000 jobs out of the government and get retail at the absolute busiest time of the year losing 20,000 jobs. It just goes to show the true struggle that traditional brick and mortar is having now,” said JJ Kinahan, chief market strategist at TD Ameritrade. “Outside of that I actually thought it was a good report.”

Biggest gains came from health care (31,000), construction (30,000) and manufacturing (25,000). Bars and restaurants added 25,000, while professional and business services grew by 19,000. Average hourly earnings rose modestly to the same 2.5% annualized gain as in November. Federal Reserve policymakers were watching the jobs data closely, both for payroll gains and for wage growth. Though central bank economists estimate the jobs market is near full employment, wage pressures have remained muted. “I don’t think it’s that big of a deal,” Michael Arone, chief investment strategist at State Street Global Advisors, said of the lower-than-expected number. “I certainly don’t think this has any impact in terms of what the Fed will do in the future. The economy continues to be on solid footing.”

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Remember: we are the ones making big tech bigger by using their products. We don’t have to.

Big Tech Will Get Bigger In 2018, While Smaller Players Look For Exits (CNBC)

Last year was the year of the tech mega-cap, with the six most valuable companies in the world now coming from that industry. Yet, even with the consolidation of money and power, 2017 featured a notable dearth of large tech deals. Don’t expect 2018 to be so quiet. As Alphabet, Amazon and Apple expand their product portfolios and their market share, boards and CEOs of technology companies with less reach are being forced to consider if they can still thrive independently, said Robert Townsend, co-chair of global mergers and acquisitions at law firm Morrison & Foerster. On top of that, the tech giants are staring at a drop in corporate taxes starting in 2018, and they can bring some of the many billions of dollars they have stashed overseas back to the U.S. at a dramatically reduced tax rate.

“There’s truly getting to be a few companies at such a scale, like Amazon, Google, Apple, Microsoft and Alibaba and Tencent that the world is going to be like a barbell, with a large gap in between with humongous tech and IT service providers on one side and everyone else on the other,” Townsend said. “That’s an uncomfortable place to be if you’re not at the very top.” There were only three technology deals of more than $5 billion announced last year involving a U.S. buyer or seller – Toshiba’s memory chip sale to a consortium led by Bain Capital, Intel’s purchase of Mobileye, and Marvell’s takeover of Cavium, according to FactSet. A fourth hostile offer – Broadcom’s $103 billion bid for Qualcomm – was rejected late in the year. That marked a big dip from 2016, when 12 tech deals over $5 billion were announced. Among them was Microsoft’s $26 billion purchase of LinkedIn and Tencent’s $8.6 billion acquisition of game developer Supercell.

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All over the western world, this may be the no. 1 problem. Lies, ignorance and evaporated entitlements. Ponzi 2.0.

Pension Fund Members Don’t Know Their Plans Are Underfunded (TA)

U.S. public pension fund members are generally unaware that their pension is underfunded and of the risk this poses, according to a survey released Thursday by Spectrem Group. The study also reveals a wide gap between how members want their pension funds managed and the actual approach many managers take. The survey, conducted online in the second half of November, compared CalPERS and NYC Retirement Systems (NYC Funds) against a “national” group, comprising individuals from the New York State Common Retirement Fund, the Florida Retirement System, the Missouri State Employees’ Retirement System and The Teacher Retirement System of Texas, as well as a small group from other public pension plans.

All told, 807 CalPERS members, 771 NYC Funds members and 1,687 “national” members responded to the survey. The survey results showed that 48% of members said they would rely on their pension for at least half of their retirement income. 92% of respondents considered their pension fund’s ability to generate returns at or above its target level important or very important, and 93% said the same about their fund’s ability to generate returns at or above overall market performance. In both instances, CalPERS members were the respondents most likely to identify these things as important or very important. 95% of respondents believed the fund’s ability to effectively manage risk was important or very important. “There’s a clear disconnect between pension fund managers, who are testing new investment styles and strategies, and members, who would prefer to see their pension fully funded,” Spectrem Group president George Walper said in a statement.

“Pension fund managers should refocus their efforts on the wants and needs of their investors, prioritizing investment decisions to maximize performance, while limiting votes to shareholder proposals that directly impact their fund and its members.” [..] 56% of members surveyed believed they are very well or moderately informed about their pension’s actual investment return, 54% about its target investment return, 60% about expenses and fees paid and 61% about the benefit structure. They were less confident in their knowledge of the costs associated with shareholder activism, the composition and investing experience of the fund’s board and the amount of time fund managers spent reviewing and voting on shareholder proposals.

However, the survey results uncovered a clear gap in how much members really knew about their pension’s actual performance and funding level. 40% of members believed their funds had performed in line with the market for the past few years — often not the case, according to Spectrem. 46% of NYC Funds members believe their pension fund has outperformed the market, when in fact their returns have been below both market performance and their target level. Likewise, 42% of CalPERS members held this mistaken belief.

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Yes, but MAGA…

US Households May Rue Their Spending Exuberance Of 2017 (BBG)

Will 2018 be the year of the household hangover? The latest data on the saving rate, which broke under 3% to 2.9% in November, the lowest since 2007, suggest that an encore to the ebullient buying over the holidays will not happen in the new year. Without a doubt, households are as buoyant as they’ve been in years. In the most recent consumer confidence report, only 15.2% of those surveyed reported jobs were “hard to get,” a 16-year low. The few economists who have forecast that the unemployment rate would fall below 4% are looking prescient. So what’s to follow? Barring a repeat of 2017’s natural disasters, demand for employment seems likely to ebb headed into the second half of the year. Supply chains will be restored, tempering the need for emergency workers, and the auto recession disrupted by hurricanes Harvey and Irma appears set to resume.

In a recent report, Moody’s Vice President Rita Sahu maintained her stable outlook for the U.S. banking sector for 2018, citing the benefits of a rising rate environment and that ultralow unemployment rate. Aside from signs that the commercial sector is “overheating,” Sahu pointed to auto loans and credit cards as “negative outliers.” “Auto loan delinquencies are above pre-crisis levels at around 2.3%,” Sahu warned, “and credit card charge-offs have increased sharply to around 3.6% as of the third quarter 2017.” Those levels of distress are tame compared with dedicated non-bank lenders who are seeing 90-day serious delinquency rates run at four times those of conventional banks and credit unions.

Credit cards are merely the next step along households’ path to living beyond their means. The decline in the saving rate is the mirror image of consumer credit outstanding as it’s ballooned in recent years. As has been heavily reported, student loans have been responsible for the bulk of the buildup, followed by car loans. Over the last two years, however, credit card growth has acted as an accelerant, outpacing income growth at an increasing pace. By its very nature, credit card debt gets more expensive to carry with every rate hike the Federal Reserve pushes through. What is perhaps most unsettling in the lack of alarm among conventional economists is that so much of the debt in the current cycle is unsecured.

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Maybe the biggest problem is that there’s no successor for Merkel.

Ghost of Weimar Looms Over German Politics (BBG)

Across the cobbled square in the city of Weimar where Germany’s national assembly met in 1919, plans to mark that first, stumbling attempt at a democratic government have taken on greater significance in recent weeks. The new center for events dedicated to the short-lived Weimar Republic is due to open in 2020, but it’s already a timely reminder of the past as the country struggles with political gridlock and the rise of the far right. The upheaval that preceded World War II and the need to avoid any repeat have cast a long shadow since Chancellor Angela Merkel was re-elected in September with no obvious coalition partner. While no-one is predicting a return to fascism, the unexpected threat of instability at the heart of Europe’s biggest economy has alarmed business and political leaders alike.

“We couldn’t have imagined that the issue of the danger to democracy and the Weimar Republic would become so contemporary,” Weimar’s mayor, Stefan Wolf, said at his office overlooking a square flanked by the 16th century St. Peter and Paul Church. The historic echoes reflect Merkel’s tarnished election victory and Germany’s slipped halo as Europe’s anchor of liberal stability. But Weimar also serves as a powerful reminder of Germany’s sense of collective responsibility to ensure the lessons of the descent into Nazi dictatorship and war are learnt by each new generation. The current dilemma stems from the erosion of support for Merkel’s Christian Democratic-led bloc and the Social Democrats, which have governed together for eight of her 12 years in office.

As backing for the two main parties ebbed, a wrench has been thrown into coalition-building, with the anti-immigration Alternative for Germany a prime beneficiary: it swept into parliament for the first time last year with almost 13% of the vote. According to a detailed account in the Frankfurter Allgemeine Zeitung, Merkel invoked Weimar to her party colleagues, reminding them of the reasons for the collapse of the grand coalition under Chancellor Hermann Mueller in 1930 in an attempt to steel them for compromise. Former Finance Minister Wolfgang Schaeuble, now Bundestag president, also recalled the need to remember the lessons of the Weimar Republic, whose collapse led to Adolf Hitler ramming through dictatorial powers three years later. “Too much polarization – meaning a competition for who’s the best anti-fascist combatant – ultimately only strengthens the right,” he said in an interview with Die Welt published on Dec. 27.

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Where would Twitter be without Trump?

Twitter Says World Leaders Like Trump Have Special Status (R.)

Twitter on Friday reiterated its stance that accounts belonging to world leaders have special status on the social media network, pushing back against users who have called on the company to banish U.S. President Donald Trump. “Blocking a world leader from Twitter or removing their controversial Tweets would hide important information people should be able to see and debate,” Twitter said in a post on a corporate blog. Twitter had already said in September that “newsworthiness” and whether a tweet is “of public interest” are among the factors it considers before removing an account or a tweet. The debate over Trump’s tweeting, though, raged anew after Trump said from his @realDonaldTrump account on Tuesday that he had a “much bigger” and “more powerful” nuclear button than North Korean leader Kim Jong Un.

Critics said that tweet and Trump’s continued presence on the network endanger the world and violate Twitter’s ban on threats of violence. Some users protested at Twitter’s San Francisco headquarters on Wednesday. Twitter responded in its blog post that even if it did block a world leader, doing so would not silence that leader. The company said that it does review tweets by world leaders and enforces its rules accordingly, leaving open the possibility that it could take down some material posted by them. “No one person’s account drives Twitter’s growth, or influences these decisions,” the company added. “We work hard to remain unbiased with the public interest in mind.”

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Caitlin Johnstone provides balance.

Trump Isn’t Another Hitler. He’s Another Obama. (CJ)

Not a lot of people remember this, but George W Bush actually campaigned in 2000 against the interventionist foreign policy that the United States had been increasingly espousing. Far from advocating the full-scale regime change ground invasions that his administration is now infamous for, Bush frequently used the word “humble” when discussing the type of foreign policy he favored, condemning nation-building, an over-extended military, and the notion that America should be the world’s police force. Eight years later, after hundreds of thousands of human lives had been snuffed out in Iraq and Afghanistan and an entire region horrifically destabilized, Obama campaigned against Bush’s interventionist foreign policy, edging out Hillary Clinton in the Democratic primaries partly because she had supported the Iraq invasion while he had condemned it.

The Democrats, decrying the warmongering tendencies of the Republicans, elected a President of the United States who would see Bush’s Afghanistan and Iraq and raise him Libya, Syria, Yemen, Pakistan, and Somalia, along with a tenfold increase in drone strikes. Libya collapsed into a failed state where a slave trade now runs rampant, and half a million people died in the Syrian war that Obama and US allies exponentially escalated. Eight years later, a reality TV star and WWE Hall-of-Famer was elected President of the United States by the other half of the crowd who was sick to death of those warmongering Democrats. Trump campaigned on a non-interventionist foreign policy, saying America should fight terrorists but not enter into regime change wars with other governments. He thrashed his primary opponents as the only one willing to unequivocally condemn Bush and his actions, then won the general election partly by attacking the interventionist foreign policy of his predecessor and his opponent, and criticizing Hillary Clinton’s hawkish no-fly zone agenda in Syria.

Now he’s approved the selling of arms to Ukraine to use against Russia, a dangerously hawkish move that even Obama refused to make for fear of increasing tensions with Moscow. His administration has escalated troop presence in Afghanistan and made it abundantly clear that the Pentagon has no intention of leaving Syria anytime soon despite the absence of any reasonable justification for US presence there. The CIA had ratcheted up operations in Iran six months into Trump’s presidency, shortly before the administration began running the exact same script against that country that the Obama administration ran on Libya, Syria and Ukraine. Maybe US presidents are limited to eight years because that’s how long it takes the public to forget everything.

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Trump depends on bubbles.

Fire and Fury (Jim Kunstler)

Is he fit for office? This question hangs in the air of the DC swamp like a necrotic odor that can’t be seen while it can’t be ignored. In a way, the very legitimacy of the republic comes into question — if Trump is the best we can do, maybe the system itself isn’t what it was cracked up to be. And then why would we think that removing him from office would make things better? How’s that for an existential quandary? We’re informed in The New York Times today that “Everyone in Trumpworld Knows He’s an Idiot,” though “moron” (Rex Tillerson) and “dope” (General H.R. McMaster) figure in there as well. Imagine all the energy it must take for everyone in, say, the cabinet room to pretend that the chief executive belongs in his chair at the center.

It reminds me of that old poker game, “Indian,” where each player holds a hole card pressed outward from his forehead for all to see but him. Ill winds are blowing and dire forces are converging. Do you think that it’s a wonderful thing that the Dow Jones Industrial Average just bashed through the 25,000 gate? The President obviously thinks so. And, of course, he’s egged on by all the fawning economic viziers selling stories about a booming economy of waiters, bartenders, and espresso jockeys. But, I tell you as sure as there is a yesterday, today, and tomorrow, those stock indexes, grand as they seem, are teetering on the brink of something awesomely sickening. And when they go over that no-bid Niagara cascade into the maelstrom, Mr. Trump’s boat will be going over the falls with them.

It’s an unappetizing spectacle to watch such a tragic arc play out. After all, these are the lives of fragile, lonely, human creatures trying hard to fathom their fate. You have to feel a little sorry for them as you would feel sorry even for a sad little peccary going down one of those quicksand holes in the Okeefenokee Swamp. Surely, many feel that these are simply evil times in which goodness and mercy are AWOL. I’m not sure exactly how this story ends, but it is beginning to look like a choice between a bang and a whimper.

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How to sell your book: Make outrageous claims.

Trump Book Author Says His Revelations Will Bring Down US President (R.)

The author of a book that is highly critical of Donald Trump’s first year as U.S. president said his revelations were likely to bring an end to Trump’s time in the White House. Michael Wolff told BBC radio that his conclusion in “Fire and Fury: Inside the Trump White House” that Trump is not fit to do the job was becoming a widespread view. “I think one of the interesting effects of the book so far is a very clear emperor-has-no-clothes effect,” Wolff said in an interview broadcast on Saturday. “The story that I have told seems to present this presidency in such a way that it says he can’t do his job,” Wolff said. “Suddenly everywhere people are going ‘oh my God, it’s true, he has no clothes’. That’s the background to the perception and the understanding that will finally end … this presidency.” Trump has dismissed the book as full of lies. It depicts a chaotic White House, a president who was ill-prepared to win the office in 2016, and Trump aides who scorned his abilities.

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Jun 052016
 


Unknown General Patrick’s headquarters, City Point, Virginia 1865

World Faces Pensions Crisis, Warns OECD (Tel.)
The Case For A Super Glass-Steagall (David Stockman)
Payday Loans a Crony Capitalist Target (WSJ)
What Makes this Jobs Report so Truly Ugly (WS)
Americans Not In The Labor Force Soar To Record 94.7 Million (ZH)
Higher Australian Household Debt Mounts To ‘Unsustainable’ Levels (Aus.)
A Guaranteed Income for Every American (WSJ)
Italy And France Are Urging Caution Over Bank Capital (R.)
Self-Harming Taxation, Or The Liquidation Of The Kulaks (Georganas)

The OECD is late to the game, and fails to comprehend the scale and urgency of that crisis.

World Faces Pensions Crisis, Warns OECD (Tel.)

The global pensions crisis has been laid bare by new analysis that shows people retiring today can expect half the income of those who became pensioners at the start of the millennium. The stark findings by the OECD will be presented in a report this week that highlights the impact of ultra-low interest rates on global retirement incomes. It shows that a person buying an annuity today who saved 10pc of their wages into a pension for 40 years can expect just over half the earnings of someone who saved the same amount but retired 15 years ago. The think-tank’s analysis of defined contribution schemes, where the value of pension pots can rise or fall depending on how investments perform, highlights the challenge faced by many pension providers in the current low growth and low inflation environment

Pension funds invest around 40pc of their assets in fixed income securities, according to the OECD, including lower yielding government bonds. “We’ve had more than half a decade of very low interest rates and that means someone who has been putting money into a savings account or into a pension fund – the value of their lifetime retirement is about half the value of someone who retired in 2000,” said Catherine Mann, the OECD’s chief economist. Tom McPhail, head of pensions research at Hargreaves Lansdown, said the OECD’s findings were consistent with its UK research. “Someone that started putting money in a pension in the 1960s was investing at a time when baby boomers were entering the workforce. But the last 16 years and the financial crisis have had an extremely negative impact on asset prices.”

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Sometime down the line, the big banks will be broken up. But it’s not something the politicial system can achieve with a few votes. Because it is owned by those same banks.

The Case For A Super Glass-Steagall (David Stockman)

Donald Trump can instantly get to the left of Hillary with respect to Wall Street and the one percenters by embracing Super Glass-Steagall. The latter would cap U.S. banks at $180 billion in assets (<1% of GDP) if they wished to have access to the Fed’s discount window and have their deposits backed by FDIC insurance. Such Federally privileged institutions would also be prohibited from engaging in trading, underwriting, investment banking, private equity, hedge funds, derivatives and other activities outside of deposit taking and lending. Instead, these latter inherently risky economic functions would be performed on the free market by at-risk banks and financial services companies.

The latter could never get too big to fail or to manage because the market would stop them first or they would be disciplined by the fail-safe institution of bankruptcy. No taxpayer would ever be put in harms’ way of trades like those of the London Whale. By embracing this kind of Super Glass-Steagall Trump would consolidate his base in the flyover zones and reel in some of the Bernie Sanders throng, too. The latter will never forgive Clinton for her Goldman Sachs speech whoring. And that’s to say nothing of her full-throated support for the 2008 bank bailouts and the Fed’s subsequent giant gifts of QE and ZIRP to the Wall Street gamblers. Besides, breaking up the big banks and putting Wall Street back on a free market based level playing field is the right thing to do.

Today’s multi-trillion banks are simply not free enterprise institutions entitled to be let alone. Instead, they are wards of the state dependent upon its subsidies, safety nets, regulatory protections and legal privileges. Consequently, they have gotten far larger, more risky and dangerous to society than could ever happen in an honest, disciplined market. Foremost among these artificial props is the Fed’s discount window. The latter provides cheap, unlimited funding at a moment’s notice with no questions asked. The purpose is to insure banking system liquidity and stability and to thwart contagion, but it also nullifies the essential bank management discipline and prudence that comes from fear of depositor flight.

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The big boys smell big profits.

Payday Loans a Crony Capitalist Target (WSJ)

To voters living comfortably in Cambridge, Mass., or the suburbs of Seattle, the payday lending crackdown sounds just right: Those storefront entrepreneurs of dubious extraction are preying upon the poor. They should be banned. But for the Consumer Financial Protection Bureau, the creation of Dodd-Frank which has been busy demonstrating the dangers of an unrestrained regulatory state, a slogan that polls well with liberal voters is only a starting point. The end result of its new payday rules, like all Obama regulatory endeavors, is to concentrate more power in the hands of Washington lobbyists and politicians and the companies that can afford to pay for them.

CFPB director Richard Corday’s 1,300-page regulatory edict will require payday lenders, an industry largely made up of thousands of storefront operators, to run full credit checks on prospective borrowers (average loan $392) to test their sources of income, need for the loan, and ability to keep financing their living expenses while paying it back. Perversely, this will make it hard or impossible to serve those customers who use the payday lending service most appropriately—who borrow when pinched but then promptly repay and don’t roll over their debt. The industry will become more focused on retaining habitual users, those who take out loans many times a year and get caught in “debt traps,” continually rolling over what are supposed to be short-term, high-margin loans.

The massive record-keeping and data requirements that Mr. Corday is foisting on the industry will have another effect: It will drive out the small, local players who have dominated the industry in favor of big firms and consolidators who can afford the regulatory overhead. It will also favor companies that can substitute big data for local knowledge like, like . . . Well, like LendUp, the Google-backed venture that issued a statement Thursday applauding the CFPB rules. Google’s self-interest has become a recurrent theme in Obama policy making, not surprising considering a study in April that found that 250 Googlers had come or gone from administration employment, and Google lobbyist visits to the Obama White House vastly outnumbered those of any other company.

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“Something has to give – and it’s starting to..”

What Makes this Jobs Report so Truly Ugly (WS)

[..] ..we suspected that the March jobs report, released in early April, would be a debacle. We based this on an analysis of the divergence over time between the reports issued by payroll processing company ADP and the jobs reports issued by the Bureau of Labor Statistics. That divergence had been going on for months. Eventually it reverts to the mean. We postulated that March would be that month. Instead, it happened two months behind schedule, so to speak, as today’s jobs report was precisely that sort of debacle. This is what was “expected”: The Labor Department was expected to report, according to Wall Street economists, a “moderate” gain of 158,000 jobs in May, “moderate” given that the Verizon strike kept 35,000 workers off their jobs. The “whisper number” was around 200,000 jobs.

And this is what we got: The BLS reported that the economy had added 38,000 jobs, the lowest since September 2010. Furthermore, the April job gains of 160,000 were chopped down by 37,000 and the March job gains of 208,000 were chopped down by 22,000. Hence, with 59,000 jobs revised away, and with only 38,000 jobs “created” in May, the net total in today’s report was a net loss of 21,000 jobs. We haven’t seen that since the Financial Crisis. A number of sectors, including manufacturing, shed jobs, and the labor participation rate dropped for the second month in a row, to 62.6%. Just about the only good number was the magic headline unemployment rate, which fell sharply, from 5% in April to 4.7%, the lowest since the Great Recession began, leaving some folks scratching their heads and searching for answers.

[.] Staffing agencies are cutting back because companies no longer need that many workers. Total business sales in the US have been declining since mid-2014. Productivity has been crummy and getting worse. Earnings are down for the fourth quarter in a row. Companies see that demand for their products is faltering, so the expense-cutting has started. The first to go are the hapless temporary workers. This is the reality for businesses: The chart below shows the gaping disconnect between declining total business sales (all businesses, not just the S&P 500 companies) and total nonfarm employment. Something has to give – and it’s starting to:

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Anything else is just noise. Unemployment stats become illusionary.

Americans Not In The Labor Force Soar To Record 94.7 Million (ZH)

So much for that much anticipated rebound in the participation rate. After it had managed to rise for 5 months in a row through March, hitting the highest level in one year, the disenchantment with working has returned, and the labor force participation rate promptly slumped in both April and May, sliding 0.4% in the past two months to 62.60%, just shy of its 35 year low of 62.4% hit last October.

This can be seen in the surge of Americans who are no longer in the labor force, who spiked by 664,000 in May, hitting an all time high of 94.7 million. As a result of this the US labor force shrank by over 400,000 to 158,466K, down from 158,924K a month ago, and helped the unemployment rate tumble to 4.7%, the lowest level since 2007. Adding the number of unemployed workers to the people not in the labor force, there are now over 102 million Americans who are either unemployment or no longer looking for work.

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Cooked.

Higher Australian Household Debt Mounts To ‘Unsustainable’ Levels (Aus.)

‘If something cannot go on forever, it will stop’, said Herbert Stein, economic adviser to presidents Nixon and Ford. Stein was mocking concerns about the “unsustainable” US current account and budget deficits in the late 1980s. He had a point, both grew much larger. Calling things unsustainable is often a cover for expressing disapproval for other reasons. The federal budget has been in surplus in fewer than 20 of the 116 years since Federation, so deficits are clearly sustainable. What isn’t sustainable is a rising stock of public debt (and interest payments) as a share of national income. Both main political parties are rightly and routinely admonished for doing little to stem the rising tide of federal and state government debt, which has tripled to about 34% of GDP over the past 10 years.

But the spectacular ascent of private debt, which has doubled to about 160% of GDP over the past 20 years, hasn’t rated a mention by either side of politics in this election. Public debt peaked above 170% of GDP during the Great Depression but private, and in particular household, debt has never been remotely close to its present proportion. Its previous peak of just over 60% occurred in the 1880s property boom, and we know what happened after that. Almost all the increase in private debt since the 1990s has entailed households borrowing to buy houses to live in and (increasingly) to rent out. Ever lower interest rates and financial deregulation have fuelled a mutually reinforcing explosion of dwelling prices and debt.

Finance textbooks teach that banks lend to businesses, which reinvest the funds in the economy. But the reality is that they lend to households to buy and invest in houses. In the past 20 years the stock of business credit, $852 billion in April, has dropped from half to a third of the total lending. Australian households overtook the Swiss as the world’s most indebted this year, with outstanding debt equivalent to 125% of GDP and no let up in sight. Combined owner-occupier and investor loans outstanding have risen from $1.2 trillion to $1.6 trillion in the past five years. While the national accounts this week showed gross national income shrank 0.4% over the year to March, housing credit increased 7.2%.

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A conversation that must and will be conducted. This from Charles Murray is not all that bad.

A Guaranteed Income for Every American (WSJ)

First, my big caveat: A UBI will do the good things I claim only if it replaces all other transfer payments and the bureaucracies that oversee them. If the guaranteed income is an add-on to the existing system, it will be as destructive as its critics fear. Second, the system has to be designed with certain key features. In my version, every American citizen age 21 and older would get a $13,000 annual grant deposited electronically into a bank account in monthly installments. Three thousand dollars must be used for health insurance (a complicated provision I won’t try to explain here), leaving every adult with $10,000 in disposable annual income for the rest of their lives. People can make up to $30,000 in earned income without losing a penny of the grant.

After $30,000, a graduated surtax reimburses part of the grant, which would drop to $6,500 (but no lower) when an individual reaches $60,000 of earned income. Why should people making good incomes retain any part of the UBI? Because they will be losing Social Security and Medicare, and they need to be compensated. The UBI is to be financed by getting rid of Social Security, Medicare, Medicaid, food stamps, Supplemental Security Income, housing subsidies, welfare for single women and every other kind of welfare and social-services program, as well as agricultural subsidies and corporate welfare. As of 2014, the annual cost of a UBI would have been about $200 billion cheaper than the current system. By 2020, it would be nearly a trillion dollars cheaper.

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After bringing down Greek banks, they now try to keep their own standing.

Italy And France Are Urging Caution Over Bank Capital (R.)

Excessive capital requirements can backfire, Italy’s economy minister said on Saturday, defending a joint French-Italian proposal to cap the amount of reserves that euro zone banks should have to wipe out before they can be rescued. Rules in force since the beginning of this year require euro zone banks to respect a minimum requirement for their own funds and eligible liabilities (MREL) in order to qualify for access to a bank-financed rescue fund in case of failure, and avoid full liquidation. In a joint paper, seen by Reuters, Paris and Rome raised doubts on the rationale of introducing a floor for MREL and urged instead a cap that should not exceed 8% of banks’ debt. IEconomy Minister Pier Carlo Padoan told an economic conference on Saturday there was a risk banks could be asked to raise too much capital too quickly, which would leave them vulnerable if tough markets made it hard to raise funds.

“Instead of stronger banks we end up with weaker ones,” he said. “The French-Italian initiative at this very delicate stage of the creation of a banking union is a voice calling for caution. We’re all going in the same direction, a stronger banking system, let’s do so at the right pace, let’s not exaggerate please.” Following the euro zone debt and banking crisis, EU countries have designed a banking union meant to strengthen lenders’ financial stability, but have not yet brought the plan to completion. Germany, the dominant power in the euro zone, is dragging its feet on a European bank deposit guarantee scheme, widely regarded as a missing link in the project. “If we don’t accept risk-sharing why are we wasting our time with the euro?,” Padoan said.

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A hilarious example of where EU-induced Greek tax measures can and do lead.

Self-Harming Taxation, Or The Liquidation Of The Kulaks (Georganas)

[..] Even the infamous case of the VAT in Greece (which has risen to be among the highest in the EU) does not yield a clear negative fiscal effect. Of course it’s not enough to show that VAT revenues fell after the rates rose, since at the same time, many other factors changed, harming the Greek economy. It is notoriously hard to isolate the effect of every change, the same way as it’s hard to predict what the effect of smaller fiscal deficits in the middle of a multidimensional crisis will be (by the way that’s the issue at the heart of the whole fiscal multipliers debate, involving the IMF, Greece and the EU).

In the recent Ryanair case though, economic investigators would probably be able to find a smoking gun. Because of a €12 tax per passenger, the no-frills airline recently decided to reduce its flights to Greece. The total damage for the country due to lower visitor numbers is clearly higher than the benefit of the tax revenue. This is an extreme case of a long bureacratic tradition in Greece, agencies taking measures with a. a very narrow own-receipts goal, which is also viewed b. in a very myopic sense, ignoring second-level effects (what we call general equilibrium effects) Typically, an agency or ministry that wants to be able to boast of “results” takes a measure with immediate benefit for itself, that could however be causing a net loss for the country as a whole, or even its own government.

A classic example is the “voluntary exit”: civil servants at government agencies or utilities being let go to lower the salary item on the agency’s budget (as the government has requested), but increasing the burden for pension funds, that again is covered by the same government, often at greater cost. In the tourism sector, the €12 per capita tax is negligible next to the more than €700 that the average European summer visitor spends in the country (that’s why in Hania, for example, hoteliers have allied to subsidize Ryanair’s activity). Even if the government ignores the country’s benefit and only cares about its tax revenues, it seems to be ignoring the €300 of additional VAT and income tax that every tourist brings.

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