Jul 262019
 
 July 26, 2019  Posted by at 8:31 am Finance Tagged with: , , , , , , , , , , , , ,  


Pablo Picasso Dora Maar with green nails 1936

 

What Mueller Was Trying to Hide (Strassel)
Barr And State AGs Discuss Big Tech Monopolies (ZH)
Tulsi Gabbard Sues Google For Campaign “Interference” (ZH)
Brussels Repels Boris Johnson’s Quest For New Brexit Deal (G.)
Don’t Call It A Coup, You’ll Spoil Boris Johnson’s Big Day Out (G.)
World Trade in Face of Tariffmageddon, Trade Wars & Manufacturing Slowdown (WS)
After Century of Chaos and War, Versailles Treaty Still Haunts the World (Sp.)
The Tyranny of the Police State Disguised as Law-and-Order (Whitehead)
In Roundup Case, US Judge Cuts $2 Billion Verdict To $86 Million (R.)
Florida Senator Says Under Siege For Seeking Epstein Probe (Julie K. Brown)
Boeing Targets October, FAA Official Says No Timeline For 737 MAX (R.)
Jacinda Ardern Accused By Maori Of ‘Lacking Leadership’ In Land Dispute (G.)
The Cheapest Way to Save the Planet Grows Like a Weed (Brown)
Earth, But Not As We Knew It – James Lovelock Turns 100 (G.)

 

 

Horowitz and/or Durham will have to look at Weissmann and the rest of Mueller’s lawyers. As well as the FBI.

What Mueller Was Trying to Hide (Strassel)

Special counsel Robert Mueller testified before two House committees Wednesday, and his performance requires us to look at his investigation and report in a new light. We’ve been told it was solely about Russian electoral interference and obstruction of justice. It’s now clear it was equally about protecting the actual miscreants behind the Russia-collusion hoax. The most notable aspect of the Mueller report was always what it omitted: the origins of this mess. Christopher Steele’s dossier was central to the FBI probe, the basis of many of the claims of conspiracy between the Trump campaign and Russia. Yet the Mueller authors studiously wrote around the dossier, mentioning it only in perfunctory terms. The report ignored Mr. Steele’s paymaster, Fusion GPS, and its own ties to Russians. It also ignored Fusion’s paymaster, the Clinton campaign, and the ugly politics behind the dossier hit job.


Mr. Mueller’s testimony this week put to rest any doubt that this sheltering was deliberate. In his opening statement he declared that he would not “address questions about the opening of the FBI’s Russia investigation, which occurred months before my appointment, or matters related to the so-called Steele Dossier.” The purpose of those omissions was obvious, as those two areas go to the heart of why the nation has been forced to endure years of collusion fantasy. Mr. Mueller claimed he couldn’t answer questions about the dossier because it “predated” his tenure and is the subject of a Justice Department investigation. These excuses are disingenuous. Nearly everything Mr. Mueller investigated predated his tenure, and there’s no reason the Justice Department probe bars Mr. Mueller from providing a straightforward, factual account of his team’s handling of the dossier.

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The pushback intensifies. They’re going to have to find a way out. Even if the CIA likes things just the way they are.

Barr And State AGs Discuss Big Tech Monopolies (ZH)

A bipartisan group of eight state attorneys general met with US Attorney General William Barr on Thursday to discuss “the real concerns consumers across the country have with big tech companies stifling competition,” according to Politico. “Our bipartisan coalition of eight state attorneys general was pleased with the opportunity to meet with U.S. Attorney General Barr to talk about the real concerns consumers across the country have with big tech companies stifling competition on the internet,” reads a joint statement from the state AGs, which include Texas, Mississippi and Louisiana.

“The potential state action adds yet another layer to the growing scrutiny of the power of online platforms. In announcing its antitrust review this week, the DOJ said it will consider “widespread concerns” expressed about search, social media and online retail services.” -Politico. Meanwhile, Facebook co-founder Chris Hughes is has been meeting with regulators to make the case for breaking up the social media giant, according to the New York Times. In recent weeks, Mr. Hughes has joined two leading antitrust academics, Scott Hemphill of New York University and Tim Wu of Columbia University, in meetings with the Federal Trade Commission, the Justice Department and state attorneys general. In those meetings, the three have laid out a potential antitrust case against Facebook, Mr. Wu and Mr. Hemphill said.

“For nearly a decade, they argue, Facebook has made “serial defensive acquisitions” to protect its dominant position in the market for social networks, according to slides they have shown government officials. By scooping up nascent rivals, they assert, Facebook has thwarted potential competitors, making it easier for the social network to charge advertisers higher prices and to offer a worse experience for users.” -New York Times

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Barr can start right here.

Tulsi Gabbard Sues Google For Campaign “Interference” (ZH)

Progressive Democrat presidential candidate Tulsi Gabbard, who has long been under fire from mainstream media and establishment voices in her own party for her vehemently anti-war and anti-interventionist stance, is suing Google, The New York Times reports, in what is said to be the first time in history a presidential candidate has sued a major technology firm. It must be remembered that though considered a “long shot” by party insiders based on her outlier stances (for which she’s been called a popular Ron Paul type unorthodox figure among the Dems), from criticizing the Democrats’ ‘Russiagate’ fixation to calling for an end to “regime change wars” abroad to being willing to meet with Syria’s President Bashar al-Assad, Google searches for her named surged across the US during last month’s first round of presidential nominee debates.

And now, as the Times reports, she says Google infringed on her free speech by suspending her campaign’s ability to get its message out: “Tulsi Now Inc., the campaign committee for Ms. Gabbard, said Google suspended the campaign’s advertising account for six hours on June 27 and June 28, obstructing its ability to raise money and spread her message to potential voters.” Google and other major US tech companies like Facebook have faced an avalanche of scrutiny and criticism of late for censoring and/or manipulating the visibility of those with unorthodox political views. The new lawsuit claims Google took steps to “interfere” with Gabbard’s chances in the upcoming 2020 presidential election.

“Google’s arbitrary and capricious treatment of Gabbard’s campaign should raise concerns for policymakers everywhere about the company’s ability to use its dominance to impact political discourse, in a way that interferes with the upcoming 2020 presidential election,” the lawsuit stated. Specifically the lawsuit suggests Google diverted Gabbard campaign emails to be sent to spam folders on Gmail at “a disproportionately high rate” compared to her Democratic rival candidates.

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No-deal Brexit was voted down in London multiple times. What are the odds it won’t be if Boris tries again?

Brussels Repels Boris Johnson’s Quest For New Brexit Deal (G.)

Brussels has roundly rebuffed Boris Johnson after he laid down tough conditions for the new Brexit deal he hopes to strike over the summer. Speaking to the House of Commons for the first time as prime minister on Thursday, Johnson reiterated his campaign pledge of ditching the Irish backstop and promised to ramp up preparations for a no-deal Brexit immediately. “I would prefer us to leave the EU with a deal,” he said. “I would much prefer it. I believe that it is possible even at this late stage, and I will work flat-out to make it happen. “But certain things need to be clear: the withdrawal agreement negotiated by my predecessor has been three times rejected by this house; its terms are unacceptable to this parliament and to this country.”


In a phone call later in the day, the European commission president, Jean-Claude Juncker, signalled the EU27’s determination to stick with the deal negotiated with Theresa May’s government – which includes the backstop. “President Juncker listened to what Prime Minister Johnson had to say, reiterating the EU’s position that the withdrawal agreement is the best and only agreement possible – in line with the European council guidelines,” a commission spokesperson said. Juncker told Johnson the EU was willing to “add language” to the political declaration – the non-binding document that covers the future relationship – but would only consider any other proposals “providing they are compatible with the withdrawal agreement”.

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“When you haven’t got a principle left to betray, such displays of craven loyalty come as second nature.”

Don’t Call It A Coup, You’ll Spoil Boris Johnson’s Big Day Out (G.)

If a developing country had just changed its entire government without an election, we’d be calling it a coup. And if that coup had been led by a man clearly unfit for office, whom even his own family can’t trust to tell the truth, we’d be calling that country a failed state. But as this is the UK and the leader in question is Boris Johnson, we plead the exceptionalism of a first-world democracy. No matter that no one voted for a de facto Vote Leave government of shits and charlatans, that is what we now have. Taking Back Control is far too precious a virtue to be entrusted to the people. For now at least. When he had made his first speech as prime minister outside Downing Street, Johnson had briefly tried to present himself as a serious figure.

Even if the content of what he was saying was still basically the same divisive doggybollocks. It hadn’t gone down that well. Because if there was one thing more terrifying than Boris acting the fool, it was Boris pretending to be serious. A carapace of sincerity that dissolves on contact with reality. Everyone knows Boris is serious about only one thing: the fulfilment of his own delusions. Other people only exist as satellites to his own ego. Useful idiots in the service of World King Idiot. A man who can go toe to toe with Donald Trump in any dysfunctionality contest. Someone who believes he is an innocent victim, misunderstood by the entire world, but who is actually a sociopath only misunderstood by himself. Someone deserving of the undying gratitude of a nation for taking a pay cut to enter Downing Street.

For his first outing in the Commons, Johnson had gone back to his more familiar default setting. The Fool. The court jester from whom no one expects the truth, so long as they are entertained. “Pifflepafflewifflewaffle,” he began. The script remains the same, even if the persona changes. Dominic Raab, Sajid Javid, Priti Patel and the dozen or so other members of the recently appointed cabinet on the frontbench roared their approval. When you haven’t got a principle left to betray, such displays of craven loyalty come as second nature.

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No collapse yet, but a plateau.

World Trade in Face of Tariffmageddon, Trade Wars & Manufacturing Slowdown (WS)

World trade volume – imports and exports of merchandise across the globe – increased 0.3% in May from April, after falling 0.6% in the prior month, according to the Merchandise World Trade Monitor, released today by CPB Netherlands Bureau for Economic Policy Analysis. On a year-over-year basis, the index fell 0.4%. And it is down 2.1% from the peak in October 2018. This isn’t exactly stellar, compared to 2017 and 2018, when the world trade index increased between 2% and 6% year-over-year.

But it isn’t a “collapse” either. A collapse of world trade occurred during the Global Financial Crisis when companies shut down their ordering process – not knowing if the banking system would still be there the next morning – and when consumers closed their wallets, particularly American consumers who provide much of the oomph behind world trade, given their penchant for imports, but they were losing their jobs by the millions. From September 2008 through the trough in May 2009, the World Trade Monitor plunged 17.5%.


In the Eurozone, there has been some decline in both imports and exports in recent months. While Germany is heavily exposed to the automotive sector and is getting hit harder, other countries such as Greece, Italy, Portugal, and France, are not. Especially in Southern Europe, food exports – such as olive oil, wine, salami, cheese, and other specialty foods – play a larger role among their exports, and there is no slowdown in food products. Also note the impact of the euro debt crisis on imports (red line):

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“A new world seemed to have been created.”

After Century of Chaos and War, Versailles Treaty Still Haunts the World (Sp.)

A century ago, in July 1919, Germany began its journey to the lowest reaches of Hades. Another 26 years would pass before a previously civilized, enlightened people finally emerged, their nation in ruins, its cities bombed and its countryside occupied. Another four decades would pass before their country was reunited, and even then some of Berlin’s neighbors, convinced that Germans possessed a double dose of original sin, preferred a divided Germany. In 1919, World War I formally came to an end. The victorious allies dictated a peace that humbled Germany, formalized the disintegration of the Austro-Hungarian and Ottoman Empires, created a gaggle of weak ethnically based states, and shared the geopolitical spoils among the victors. A new world seemed to have been created.

The treaty signed on June 28 in the famous Hall of Mirrors at the Versailles palace, however, proved to be but a brief interlude of peace. Germany remained recalcitrant. The myth had emerged that the German military had been defeated by the Dolchstoss, or “stab-in-the-back,” at home. But the reality was unpleasant enough: the peace settlement made no pretense of applying Woodrow Wilson’s famed Fourteen Points to Germany as the surrendering Germans had expected. The first democratically elected German government resigned rather than signing what became known as the Versailles Treaty. After being threatened with invasion, the successor leadership submitted. Not until two weeks later, in July, did the reluctant Reichstag ratify the pact.

The Deutsche Zeitung inveighed against the “disgraceful treaty” and promised, “We will never stop until we win back what we deserve.” Versailles almost immediately began radicalizing politics in the Weimar republic, encouraging violence, assassinations of left-wing politicians, and extremist bids for power, including by an army veteran and surprisingly effective rabble-rouser named Adolf Hitler. The sense of crisis gradually receded, however, only to have the Great Depression destroy much of the middle class, the mainstay of any democratic order. Hitler gained power, and a little more than two decades after losing one war Germany plunged into another one…

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“America’s expanding military empire is bleeding the country dry at a rate of more than $15 billion a month (or $20 million an hour)..”

The Tyranny of the Police State Disguised as Law-and-Order (Whitehead)

Having been co-opted by greedy defense contractors, corrupt politicians and incompetent government officials, America’s expanding military empire is bleeding the country dry at a rate of more than $15 billion a month (or $20 million an hour)—and that’s just what the government spends on foreign wars. The U.S. military empire’s determination to police the rest of the world has resulted in more than 1.3 million U.S. troops being stationed at roughly 1000 military bases in over 150 countries around the world. That doesn’t include the number of private contractors pulling in hefty salaries at taxpayer expense. In Afghanistan, for example, private contractors outnumber U.S. troops three to one. No matter how we might differ about the role of the U.S. military in foreign affairs, surely we can agree that America’s war spending and commitment to policing the rest of the world are bankrupting the nation and spreading our troops dangerously thin.

All of the imperial powers amassed by Barack Obama and George W. Bush—to kill American citizens without due process, to detain suspects indefinitely, to strip Americans of their citizenship rights, to carry out mass surveillance on Americans without probable cause, to suspend laws during wartime, to disregard laws with which they might disagree, to conduct secret wars and convene secret courts, to sanction torture, to sidestep the legislatures and courts with executive orders and signing statements, to direct the military to operate beyond the reach of the law, to operate a shadow government, and to act as a dictator and a tyrant, above the law and beyond any real accountability—were inherited by Donald Trump.

These presidential powers—acquired through the use of executive orders, decrees, memorandums, proclamations, national security directives and legislative signing statements and which can be activated by any sitting president—enable past, president and future presidents to operate above the law and beyond the reach of the Constitution. Yet no matter how we might differ about how success or failure of past or present presidential administrations, surely we can agree that the president should not be empowered to act as an imperial dictator with permanent powers.

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Trying not to say Monsanto. And why have a jury system when judges keep overruling them? Doesn’t that make it all a mockery?

In Roundup Case, US Judge Cuts $2 Billion Verdict To $86 Million (R.)

A California judge on Thursday reduced a $2 billion jury verdict, slashing the award for a couple who blamed Bayer’s glyphosate-based weed killer Roundup for their cancer to $86.7 million. Superior Court Judge Winifred Smith of the California Superior Court in Oakland said the jury’s billion-dollar punitive damages awards were excessive and unconstitutional, but rejected Bayer’s request to strike the punitive award outright. Under Smith’s final order, California couple Alva and Alberta Pilliod would receive roughly $17 million in compensatory and $69 million in punitive damages, down from $55 million and $2 billion, respectively. The plaintiffs still have to formally accept the reduced award. Bayer in a statement on Thursday said Smith’s decision to slash the award was a step in the right direction, but added it would file an appeal.


“We continue to believe that the verdict and damage awards are not supported by the evidence at trial and conflict with the extensive body of reliable science and conclusions of leading health regulators worldwide that confirms glyphosate-based herbicides can be used safely and that glyphosate is not carcinogenic,” the company said. [..] The company had asked Smith to strike the punitive damages award in the Pilliods’ case, arguing that hundreds of studies and assessments by regulators worldwide concluded the herbicide to be safe for human use. But the judge in her Thursday order rejected those arguments.“In this case there was clear and convincing evidence that Monsanto made efforts to impede, discourage, or distort scientific inquiry and the resulting science,” Smith said.

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Typical: sheriff is very powerful. Not so typical: Senator Lauren Book’s dad is a very powerful lobbyist.

Florida Senator Says Under Siege For Seeking Epstein Probe (Julie K. Brown)

Florida Sen. Lauren Book has reached out to Capitol police after receiving an anonymous warning connected to her demand for a state inquiry into Palm Beach Sheriff Ric Bradshaw’s handling of accused sex trafficker Jeffrey Epstein’s lenient work release program, the Miami Herald has learned. Book, a vocal advocate for child sexual assault survivors, said she also received more than a dozen calls from Bradshaw’s political supporters asking her to back off on her call for an investigation by the Florida Department of Law Enforcement into Bradshaw. On Monday, Book, a Democrat, wrote a letter to Republican Gov. Ron DeSantis asking him to authorize a probe into how Epstein, accused of molesting dozens of underage girls and a registered sex offender, was permitted to leave the Palm Beach County Jail and spend much of his 2008-2009 incarceration in an office in West Palm Beach.

DeSantis said Thursday after a Cabinet meeting that he would “certainly consider” an investigation but that he has yet to decide how the state should respond. [..] the Palm Beach Sheriff’s Office issued a new statement that its previously announced internal affairs investigation of the deputies who guarded and supervised Epstein during his work release had become a criminal investigation as well. No further elaboration was provided. Meanwhile, Book, in an interview with the Herald, said she had asked the Capitol police, who handle security for state lawmakers, to look into claims made on a Russian website alleging that Bradshaw was behind an effort to access her phone and emails by using the pretext of “imminent danger’’ to obtain her personal information.

“I’ve received countless phone calls saying ‘Little girl you don’t know what you’re getting into,’ and telling me that I should just stop,’’ said Book, a child sexual abuse survivor herself who has worked to pass strict sex offender laws in Florida. In a statement, PBSO said it had no knowledge of anyone trying to threaten or pressure Book.

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Southwest has already cancelled flights till 2020, and they far more 737 MAXs than anyone else. Even closed down Newark operations because of it.

Boeing Targets October, FAA Official Says No Timeline For 737 MAX (R.)

The U.S. Federal Aviation Administration distanced itself on Thursday from suggestions by Boeing that its grounded 737 MAX could resume flying passengers in October, saying regulators do not have a timeline for vetting safety upgrades. Boeing Chief Executive Dennis Muilenburg told analysts on Wednesday he was confident the MAX would be back in service as early as October after a certification flight with regulators in September. But the FAA’s top official declined to be pinned down on Boeing’s target of October or any other timeline for clearing the plane, which was grounded in March after two fatal crashes.


“We don’t have a timeline. Don’t have October. Don’t have August. Don’t have 2021,” Acting Administrator Dan Elwell told reporters at the EAA AirVenture air show in Oshkosh, Wisconsin. “We have one criteria. When the 737 MAX has been – when the complications to it have been satisfactorily assessed, and the MAX is safe to return to service, that’s the only criteria,” Elwell said. [..] U.S. airlines are cancelling thousands of monthly flights due to the grounding and have warned of an increasing financial toll in the second half of the year. Southwest Airlines, a top customer, said on Thursday it was scheduling without the MAX until early January and ending operations at Newark Liberty International airport due to a scarcity of planes.

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Not looking good, Jacinda.

Jacinda Ardern Accused By Maori Of ‘Lacking Leadership’ In Land Dispute (G.)

New Zealand’s prime minister, Jacinda Ardern, is being accused of a “lack of leadership” over an escalating land dispute between Maori and a construction company which plans to build 500 homes on sacred land in south Auckland. Opposition to the project boiled over this week over when a group that had been illegally occupying the land was served an eviction notice. The protest group has grown into about 300 people with police also increasing their presence. Seven protesters were arrested on Thursday night after they linked arms and chained themselves to a van to block part of the motorway near the city’s airport. The site, called Ihumatao, is home to New Zealand’s earliest market gardens as well as being a significant archaeological site on land considered sacred by local Maori.


Fletcher Building is looking to develop around 500 homes on the land, which local Maori say was stolen from them after land wars with the British dating back to the 1860s. The protest group want the land given back to local Maori. Protesters have implored Ardern to step in, including sending a letter directly to her. However, she has so far said the government will not get involved. “This is something obviously everyone wants to see resolution around, no one wants to see the kinds of disruption and outpouring of emotion [we have seen],” Ardern said. “Everyone wants a resolution but ultimately it will have to come from mana whenua (Maori). Protest leader Pania Newton told media that Ardern’s words showed “a lack of leadership” and showed “ignorance” about its treaty obligations. “This is the revolution of our generation,” Newton said.

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How much industrial hemp can we plant? Pretty sure if we do it, it’ll be for money.

The Cheapest Way to Save the Planet Grows Like a Weed (Brown)

Planting billions of trees across the world is by far the cheapest and most efficient way to tackle the climate crisis. So states a Guardian article, citing a new analysis published in the journal Science. The author explains: As trees grow, they absorb and store the carbon dioxide emissions that are driving global heating. New research estimates that a worldwide planting programme could remove two-thirds of all the emissions that have been pumped into the atmosphere by human activities, a figure the scientists describe as “mind-blowing”. [..] The July analytical review in Science calculated how many additional trees could be planted globally without encroaching on crop land or urban areas.

It found that there are 1.7 billion hectares (4.2 billion acres) of treeless land on which 1.2 trillion native tree saplings would naturally grow. Using the most efficient methods, 1 trillion trees could be restored for as little as $300 billion—less than 2% of the lower range of estimates for the Green New Deal introduced by progressive Democrats in February. The Guardian quoted Professor Tom Crowther at the Swiss university ETH Zürich, who said, “What blows my mind is the scale. I thought restoration would be in the top 10, but it is overwhelmingly more powerful than all of the other climate change solutions proposed.” He said it was also by far the cheapest solution that has ever been proposed. The chief drawback of reforestation as a solution to the climate crisis, as The Guardian piece points out, is that trees grow slowly.

The projected restoration could take 50 to 100 years to reach its full carbon sequestering potential. Fortunately, as of December 2018, there is now a cheaper, faster and more efficient alternative—one that was suppressed for nearly a century but was legalized on a national scale when President Trump signed the Agriculture Improvement Act of 2018. This is the widespread cultivation of industrial hemp, the nonintoxicating form of cannabis grown for fiber, cloth, oil, food and other purposes. Hemp grows to 13 feet in 100 days, making it one of the fastest carbon dioxide-to-biomass conversion tools available. Industrial hemp has been proved to absorb more CO2 per hectare than any forest or commercial crop, making it the ideal carbon sink. It can be grown on a wide scale on nutrient-poor soils with very small amounts of water and no fertilizers.

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A formidable mind. And one not shy about contradicting himself.

Earth, But Not As We Knew It – James Lovelock Turns 100 (G.)

James Lovelock, the scientist and writer, is 100 years old on Friday and remains a combination of environmental Cassandra and Old Testament prophet. Unlike them, though, he changes his mind about what the future holds. Foolish consistency, Emerson wrote, is the hobgoblin of little minds, and Mr Lovelock’s mind is not little. More than 10 years before the record high July temperatures, Mr Lovelock flatly told the Guardian that 80% of human life on Earth would perish by 2100 because of the climate emergency. He imagined a dystopian end of humanity where “the few breeding pairs of people that survive will be in the Arctic where the climate remains tolerable” by the end of the 21st century.

As a scientist (his first letter to Nature was published in 1945, on the subject of writing on petri dishes), Mr Lovelock’s life has been studded with insight. He invented an electron capture detector that could pick up minute traces of pollutants – such as the pesticides that spurred Rachel Carson to write the 1962 book Silent Spring. At home he built instruments that ended up on Mars, helping Nasa to establish that the red planet was lifeless.

Mr Lovelock’s imagination has not narrowed, but his vision has become bleaker with time. His new book Novacene: The Coming Age of Hyperintelligence proposes that the 300,000-year Anthropocene era of Earth’s human domination is ending. Novacene is a new age where our species is doomed to a worse fate than clinging on for dear life at the north pole as previously imagined. Instead we will become lackeys of cyborgs able to think 10,000 times faster than humans. We will be kept on to ensure there are habitable temperatures for these superior intelligences.

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How the Mueller people -and the Senate, let’s not forget them- kept Russiagate alive all that time:

 

 

 

 

Mar 182019
 
 March 18, 2019  Posted by at 9:58 am Finance Tagged with: , , , , , , , , , , , ,  


Albert Gleizes The football players 1912-13

 

How Boeing, FAA Certified The Suspect 737 MAX Flight Control System (ST)
Boeing’s Doomed 737 Max’s (Margolis)
The EU Has Never Had More Power Over Britain (G.)
Dutch PM Compares Theresa May To Monty Python Limbless Knight (G.)
100,000 Children in UK ‘Could Become Undocumented’ Overnight After Brexit (G.)
‘Pupil Poverty’ Pressure On School Cash (BBC)
With Brexit Approaching UK’s Voice In Brussels Grows Quiet (G.)
Smartphone Shipments In China Collapse To Six Year Low (ZH)
Apartment Values Tipped To Plunge As Much As 50% In Some Sydney Areas (DM)
Ultra Low Wage Growth The Intended Outcome Of Government Policies (Quiggin)
Deutsche Bank And Commerzbank Go Public On Merger Talks (R.)
Saudi Crown Prince Allegedly Stripped Of Some Authority (G.)
Dead Whale Washed Up In Philippines Had 40kg Of Plastic Bags In Stomach (G.)

 

 

As I said on March 15: “If I were New Zealand’s government, and Australia’s, I’d say this is not the time for the countries’ white populations to speak. Let the Maori do the talking instead. It’s their land.”

 

 

Maybe not the kind of thing we should want to be swept under the carpet. But don’t underestimate Boeing’s political power. A series of tweets from a pilot and software engineer sheds a lot of light on what happened with the 737-MAX: one corner cut led automatically to the next one being cut. Until there were no more corners left. Dominoes. Zero Hedge has that series here.

Mike -Mish- Shedlock adds this: “If the above analysis by Trevor Sumner is correct, the planes were too complicated to fly because Boeing cut corners to save money, then did not even have the decency to deliver them with needed warning lights and operation instructions. There may be grounds for a criminal investigation here, not just civil. Regardless, Boeing’s decision to appeal to Trump to not ground the planes is morally reprehensible at best. Trump made the right call on this one, grounding the planes, albeit under international pressure. [..] By the way, if the timelines presented are correct, the FAA got in bed with Boeing, under Obama.”

How Boeing, FAA Certified The Suspect 737 MAX Flight Control System (ST)

As Boeing hustled in 2015 to catch up to Airbus and certify its new 737 MAX, Federal Aviation Administration (FAA) managers pushed the agency’s safety engineers to delegate safety assessments to Boeing itself, and to speedily approve the resulting analysis. But the original safety analysis that Boeing delivered to the FAA for a new flight control system on the MAX — a report used to certify the plane as safe to fly — had several crucial flaws. That flight control system, called MCAS (Maneuvering Characteristics Augmentation System), is now under scrutiny after two crashes of the jet in less than five months resulted in Wednesday’s FAA order to ground the plane.

Current and former engineers directly involved with the evaluations or familiar with the document shared details of Boeing’s “System Safety Analysis” of MCAS, which The Seattle Times confirmed. The safety analysis: • Understated the power of the new flight control system, which was designed to swivel the horizontal tail to push the nose of the plane down to avert a stall. When the planes later entered service, MCAS was capable of moving the tail more than four times farther than was stated in the initial safety analysis document. • Failed to account for how the system could reset itself each time a pilot responded, thereby missing the potential impact of the system repeatedly pushing the airplane’s nose downward. •Assessed a failure of the system as one level below “catastrophic.” But even that “hazardous” danger level should have precluded activation of the system based on input from a single sensor — and yet that’s how it was designed.

The people who spoke to The Seattle Times and shared details of the safety analysis all spoke on condition of anonymity to protect their jobs at the FAA and other aviation organizations. Both Boeing and the FAA were informed of the specifics of this story and were asked for responses 11 days ago, before the second crash of a 737 MAX last Sunday. Late Friday, the FAA said it followed its standard certification process on the MAX. Citing a busy week, a spokesman said the agency was “unable to delve into any detailed inquiries.” Boeing responded Saturday with a statement that “the FAA considered the final configuration and operating parameters of MCAS during MAX certification, and concluded that it met all certification and regulatory requirements.”

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Nice story, but he seeks to blame Trump instead of the FAA, and that doesn’t go anywhere.

Boeing’s Doomed 737 Max’s (Margolis)

I don’t like flying. I consider it unnatural, unhealthy and fraught with peril. But I do it all the time. For me, it’s either fly or take an ox cart. In fact, I’ve been flying since I was six years old – from New York to Paris on a lumbering Boeing Stratocruiser, a converted, double-decker WWII B-29 heavy bomber. I even had a sleeping berth. So much for progress. Lots can go wrong in the air. Modern aircraft have thousands of obscure parts. If any one of them malfunctions, the aircraft can be crippled or crash. Add pilot error, dangerous weather, air traffic control mistakes, mountains where they are not supposed to be, air to air collisions, sabotage and hijacking.

I vividly recall flying over the snow-capped Alps in the late 1940’s aboard an old Italian three-motor airliner with its port engine burning, and the Italian crew panicking and crossing themselves. Some years ago, I was on my way to Egypt when we were hijacked by a demented Ethiopian. A three day ordeal ensued that included a return flight to New York City from Germany, with the gunman threatening to crash the A-310 jumbo jet into Wall Street – a grim precursor of 9/11. My father, Henry Margolis, got off a British Comet airliner just before it blew up due to faulty windows.

Which brings me to the current Boeing crisis. After a brand new Boeing 737 Max crashed in Indonesia it seemed highly likely that there was a major problem in its new, invisible autopilot system, known as MCAS. All 737 Max’s flying around the world should have been grounded as a precaution. But America’s aviation authority, the Federal Aviation Administration (FAA), allowed the Max to keep flying. The FAA is half regulator and half aviation business promoter, a clear conflict of interest. The crash of a new Ethiopian 737 Max outside Addis Ababa under very similar circumstances to the Lion Air accident set off alarm bells around the globe.

Scores of airlines rightly grounded their new Max’s. But the US and Canada did not. The FAA continued to insist the aircraft was sound. The problem, it was hinted between the lines, was incompetent third world pilots. It now appears that America’s would-be emperor, Pilot-in–Chief Donald Trump, may have pressed the FAA to keep the 737 Max’s in the air. Canada, always shy when it comes to disagreeing with Washington, kept the 737 Max’s flying until there was a lot of evidence linking the Indonesia and Ethiopian crashes. Trump finally ordered the suspect aircraft grounded. But doing so was not his business. That’s the job of the FAA. But Trump, as usual, wanted to hog the limelight. By now, the 737 Max ban is just about universal.

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Mess. 11 days left.

The EU Has Never Had More Power Over Britain (G.)

It is easy to assign all the blame to Mrs May, the control freak who lost control. The charge list against her is certainly a lengthy one. She triggered article 50 before her government had an agreed strategy for withdrawal and her senior team then wasted months squabbling with itself rather than advancing the negotiations with the EU. Ignoring advice to the contrary and without advance discussion with her cabinet, she made a prison for herself by laying down red lines that made the negotiations more difficult and set her up for a string of ignominious subsequent reversals. When she threw away her majority at an election she didn’t have to call, she carried on as if nothing had changed rather than trying to reach out to other parties to forge a broad consensus about a way forward.

That made her the hostage of the Democratic Unionist party and the Brexit ultras on the right of her party. Mrs May has one quality that is of value in a political crisis. She has resilience. She lacks all the other ones, such as imagination, advocacy and agility. True, all true, and yet not the whole truth. Any account of this nightmare that holds Mrs May solely culpable is not a complete explanation for how we got here. In a dark corner of what remains of its political brain, the Tory party knows that it is collectively guilty of driving the country it professes to love into this shaming mess. With a few prescient exceptions, the Conservatives all backed David Cameron when he promised a referendum on the cynical basis that he might not have to deliver it and with the arrogant assumption that, if he did have to, he would easily win it.

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“She reminds me occasionally of that character from Monty Python where all the arms and legs are cut off but he then tells the opponent: ‘Let’s call it a draw.’

Dutch PM Compares Theresa May To Monty Python Limbless Knight (G.)

Theresa May is like the knight in Monty Python and the Holy Grail who loses his arms and legs in a duel and calls it a draw, the Dutch prime minister has said. Mark Rutte, who appeared visibly irritated last week at the failure of MPs to pass the Brexit deal, admitted feeling “angry” at the impasse in Westminster. He said his frustration was focused on the posturing of those seeking to make party political points during a major national crisis but praised May’s “incredible” resilience in the face of repeated knock-backs in the House of Commons. “Look, I have every respect for Theresa May,” Rutte said in an interview with the Dutch broadcaster WNL on Sunday.

“She reminds me occasionally of that character from Monty Python where all the arms and legs are cut off but he then tells the opponent: ‘Let’s call it a draw.’ She’s incredible. She goes on and on. At the same time, I do not blame her, but British politics.” The black knight sketch in the 1975 Monty Python film had John Cleese playing the role of the deluded swordsman who could not admit defeat, even as Graham Chapman’s King Arthur cut off all his limbs. Rutte said of the prime minister’s predicament: “You can see what happens when a country puts everything on the roulette wheel and takes a risk, and the whole thing collapses. That is what is happening. Economic, financial, politically, England is in a very bad position right now.”

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After 40 years of EU membership, the UK stands to plunge into chaos when 1000s of laws and regulations evaporate. Very predictable, but mostly ignored.

100,000 Children in UK ‘Could Become Undocumented’ Overnight After Brexit (G.)

Thousands of children of EU nationals risk becoming a new “Windrush generation”, a children’s legal charity has said. They are concerned that vulnerable children could become undocumented in the same way as the Caribbean children who came to the UK decades ago only to suffer at the hands of the Home Office’s hostile environment decades later. An estimated 900,000 EU national children are in the UK with about 285,000 born in the country. Coram Children’s Legal Centre fears that children in foster care, in care homes, and others from vulnerable families could slip through the net of the new Home Office registration scheme for EU nationals after Brexit.

The Home Office estimates that between 10% and 20% of all applicants will be vulnerable, unable to provide documentary evidence of their time in the UK. “If just 15% of the current population of EU national children fail to ‘regularise’ their status before the cut-off point, 100,000 children would be added to the UK’s undocumented child population overnight, nearly doubling it [the numbers of existing undocumented children],” said Kamena Dorling, group head of policy and public affairs at Coram. About 5,000 children of EU nationals are separated from their parents and are in care and Coram is calling on the government to force local authorities to identify them now in order to get their settled status before the cut-off point in 2020 or 2021.

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Dumb headline from BBC for a very real issue: schools care for poor pupils, and then see their funding cut.

‘Pupil Poverty’ Pressure On School Cash (BBC)

Schools in England are having to “pick up the pieces” for families in poverty, including giving food and clothes to children, head teachers warn. But, they say, that is unsustainable when schools are facing “funding cuts”. Heads will raise their concerns at the Association of School and College Leaders’ (ASCL) annual conference. Education Secretary Damian Hinds will tell the conference he is setting up an expert advisory group to help teachers with “the pressures of the job”. The advisory group, including the mental health charity Mind and teachers’ representatives, will look at ways to improve wellbeing among teachers and to tackle stress. [..]

Edward Conway, head of St Michael’s Catholic High School in Watford, says: “Pupil poverty has increased significantly over the past eight years, with us providing food, clothing, equipment and securing funds from charitable organisations to provide essential items such as beds and fridges.” The head teachers’ union has canvassed the views of school leaders, whose comments include: “When schools have to buy shoes for children to wear to school on a regular basis, we must have a problem.” Another head said: “In 24 years of education, I have not seen the extent of poverty like this. “Children are coming to school hungry, dirty and without the basics to set them up for life. “The gap between those that have and those that do not is rising and is stark.”

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Where Britain is: “sitting in the EU departure lounge.”

With Brexit Approaching UK’s Voice In Brussels Grows Quiet (G.)

For years a British foreign minister has shuttled once a month to Brussels or Luxembourg to meet their European counterparts. The crises of the world have crowded the agenda: from the Arab spring to the annexation of Crimea, coups, stolen elections and intractable wars. Monday, in theory, could be the last time the United Kingdom name plate is on the table. While a Brexit extension is a near-certainty, the official departure date is still 29 March. Uncertainty over exit day requires careful diplomacy. On Monday the British minister will have the chance to weigh in on the EU’s China strategy, ahead of a summit with Beijing on 9 April.

While British officials remain involved in discussions, the UK will hang back on strategic questions about how the EU should approach China. Nobody wants to be seen as lecturing European allies, while sitting in the EU departure lounge. A government spokesperson said: “The UK will continue to take a full part in discussions at the [Foreign Affairs Council], focusing on those issues that matter most to the UK and EU.” Other day-to-day EU business provides a jarring contrast with the government’s Brexit strategy: one of Theresa May’s last acts as an EU leader will be to sign a routine communique on strengthening the single market – the one she insists Britain must leave.

Meanwhile, the UK’s 73 MEPs do not know if they will be out of a job in a fortnight, or in three months. “It is really unsettling, but we are the least people to worry about,” said the Liberal Democrat MEP Catherine Bearder, speaking just outside the chamber in Strasbourg under the strident ring of a voting bell. The uncertainty facing MEPs is nothing, she adds, compared with the unknowns confronting business. “A politician’s life is always uncertain, you never know if you are going to come back for the next mandate.”

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Radiation.

Smartphone Shipments In China Collapse To Six Year Low (ZH)

Months after Apple stunned the market by announcing it would no longer be reporting quarterly iPhone unit sales, we have some insight as to the reason. February saw smartphone shipments in China collapse to their lowest levels in six years, indicating that the super-saturated industry has failed to turn around amidst a global economy that is grinding slower. Shipments to China came in at 14.5 million units for February, down 19.9% from last year, according to Reuters, who cited the China Academy of Information and Communications Technology. It’s the lowest total since February 2013.

February is traditionally a tough month for Chinese consumer purchases, as the Chinese spend a majority of the month celebrating the new year. However, this year’s drop was more concentrated than past years, as a result of both a slowing economy and the ongoing U.S./China trade war. When Apple recently cut sales forecasts this year, it blamed China for weighing on its results. To try and stimulate demand, the company paired with China-based Ant Financial to offer interest-free iPhone financing. Other retailers in China have tried similar promos to try and spur demand. This has some manufacturers, like Huawei, looking to corner the higher margin end of the market instead. Huawei saw its market share of China’s $500 to $800 device segment rise to 26.6% from 8.8% in 2018, according to data from Counterpoint Research. Apple, on the other hand, saw its share fall to 54.6% from 81.2%.

As an added bonus, we recently reported on Chinese smartphones also emitting the most radiation of any smartphones worldwide. The current smartphone creating the highest level of radiation is the Mi A1 from Chinese vendor Xiaomi. Another Chinese phone is in second place – the OnePlus 5T. In fact, the two companies are represented heavily in a list of “Phones Emitting the Most Radiation” that was recently released by Statista. 8 of the top 16 handsets being made by one of these two companies. Premium Apple phones, such as the iPhone 7 and the iPhone 8 are also here to be seen, as are the latest Pixel handsets from Google.

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But there’s no bubble.

Apartment Values Tipped To Plunge As Much As 50% In Some Sydney Areas (DM)

Apartment values in Australia’s big cities are set to plunge, with prices in one suburb to plummet as much as 50 per cent according to one industry observer, as Chinese buyers abandon off-the-plan residential tower projects. Ryde, in Sydney’s north, is Australia’s second-worst performing property market with dwelling values diving by 14.8 per cent during the past year, CoreLogic data showed. Digital Finance Analytics founder Martin North, an economist, feared apartment values there could be sliced in half during the next three years before stagnating for a decade. ‘We’ve got massive oversupply in those areas but you’ve just got no demand,’ he told Daily Mail Australia on Friday.

‘Some of the central high-rise apartments in the inner urban areas, like Ryde, 40 per cent now is certainly feasible. ‘In the worst case, you could see unit prices nearly halve.’ Starr Partners chief executive Doug Driscoll, who specialises in the Sydney real estate market, said Mr North’s forecasts were far fetched. He did, however, blame councils for approving too many developments. ‘We had an influx of foreign investment. We had an environment of record low interest rates, money was easily available – these things don’t last forever,’ he told Daily Mail Australia. ‘In some suburbs, in some pockets, we have seen an oversupply.’

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From Australia, but applicable worldwide.

Ultra Low Wage Growth The Intended Outcome Of Government Policies (Quiggin)

The long debate over the causes of wage stagnation took an unexpected turn last week, when Finance Minister Matthias Cormann described (downward) flexibility in the rate of wage growth as “a deliberate design feature of our economic architecture”. It was a position that was endorsed in a flurry of confusion 16 seconds after it had been rejected by Defence Industry Minister Linda Reynolds. Cormann had said policies aimed at pushing wages up could cause “massive spikes in unemployment”. The ease with which Reynolds was trapped into at first rejecting and then accepting what her ministerial colleague had said flowed from the fact that Cormann had broken one of the standing conventions of politics in Australia, and for that matter, the English-speaking world.

For more than forty years, both the architecture of labour market regulation and the discretionary choices of governments have been designed with the precise objective of holding wages down. These policies have been quite successful, as can be seen from the graph. However, at least until recently, there has been bipartisan agreement on at least one aspect of them – that no one should mention their role in holding back wages. Instead, the decline in the wage share of national income has been variously blamed on • technology • immigration • imports from China and, more recently, • the end of the mining boom. None of these explanations stand up to scrutiny.

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The lame and the blind. Reports should look at the size of Deutsche relative to the German economy, and the nerves that touches in Berlin.

Deutsche Bank And Commerzbank Go Public On Merger Talks (R.)

Deutsche Bank and Commerzbank confirmed on Sunday they were in talks about a merger, prompting labor union concerns about possible job losses and questions from analysts about the merits of a combination. Germany’s two largest banks issued short statements following separate meetings of their management boards, a person with knowledge of the matter said, indicating a quickening of pace in the merger process, although both also warned that a deal was far from certain. “In light of arising opportunities, the management board of Deutsche Bank has decided to review strategic options,” Deutsche said in its statement.

Christian Sewing, Deutsche Bank’s chief executive, told employees that Deutsche still aimed “to remain a global bank with a strong capital markets business… with a global network.”A merged bank would likely be the third largest in Europe after HSBC and BNP Paribas, with roughly 1.8 trillion euros ($2.04 trillion) in assets, such as loans and investments, and a market value of about 25 billion euros. [..] However, skeptics questioned the wisdom of a merger. “We do not see a national champion here, but a shaky zombie bank that could lead to another billion-euro grave for the German state. Why should we take this risk?” said Gerhard Schick, finance activist and ex-member of the German parliament.

While the banks had not publicly commented on merger talks until Sunday, Finance Minister Olaf Scholz last Monday confirmed that there were negotiations. On Sunday, the ministry acknowledged the announcement and said it remained in regular contact with all parties. However, there were signs of political opposition. Hans Michelbach, a lawmaker from the Christian Social Union (CSU), the Bavarian sister party of Chancellor Angela Merkel’s Christian Democratic Union (CDU), urged the government to sell its 15 percent stake in Commerzbank before a deal. “There may not be an ownership by the federal government in a merged big bank indirectly through an old stake. We do not need a German State Bank AG,” he told Reuters.

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Hearsay report.

Saudi Crown Prince Allegedly Stripped Of Some Authority (G.)

The heir to the Saudi throne has not attended a series of high-profile ministerial and diplomatic meetings in Saudi Arabia over the last fortnight and is alleged to have been stripped of some of his financial and economic authority, the Guardian has been told. The move to restrict, if only temporarily, the responsibilities of Crown Prince Mohammed bin Salman is understood to have been revealed to a group of senior ministers earlier last week by his father, King Salman. The king is said to have asked Bin Salman to be at this cabinet meeting, but he failed to attend.

While the move has not been declared publicly, the Guardian has been told that one of the king’s trusted advisers, Musaed al-Aiban, who was educated at Harvard and recently named as national security adviser, will informally oversee investment decisions on the king’s behalf. The Saudi embassy in Washington has declined multiple requests for comment since the Guardian approached it on Tuesday. The relationship between the king and his son has been under scrutiny since the murder of Saudi journalist Jamal Khashoggi, which was alleged to have been ordered by Prince Mohammed and provoked international condemnation of the crown prince. This has been denied by the Saudi government.

Experts on the Middle East are divided over whether the murder, and concern over the kingdom’s role in the conflict in Yemen, have led to tension at the heart of the notoriously secretive royal court. But while most observers expect Prince Mohammed to accede to the thrown, there are some signs that the king is seeking to rein in his controversial son at a time when Saudi Arabia is under the spotlight. The Guardian has been told Prince Mohammed did not attend two of the most recent weekly meetings of cabinet ministers, which are headed by the king. The crown prince has also not attended other high-profile talks with visiting dignitaries, including one last week with the Russian foreign minister, Sergey Lavrov.

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And this is just what we see, what washes up on beaches. “16 rice sacks. 4 banana plantation style bags and multiple shopping bags” in the whale’s stomach..”

Dead Whale Washed Up In Philippines Had 40kg Of Plastic Bags In Stomach (G.)

A young whale that washed up in the Philippines died from “gastric shock” after ingesting 40kg of plastic bags. Marine biologists and volunteers from the D’Bone Collector Museum in Davao City, in the Philippine island of Mindanao, were shocked to discover the brutal cause of death for the young curvier beaked whale, which washed ashore on Saturday. In a damning statement on their Facebook page, the museum said they uncovered “40 kilos of plastic bags, including 16 rice sacks. 4 banana plantation style bags and multiple shopping bags” in the whale’s stomach after conducting an autopsy. Images from the autopsy showed endless piles of rubbish being extracted from the inside of the animal, which was said to have died from “gastric shock” after ingesting all the plastic.

[..] The use of single-use plastic is rampant in south-east Asia. A 2017 report by Ocean Conservancy stated that China, Indonesia, the Philippines, Thailand, and Vietnam have been dumping more plastic into the ocean than the rest of the world combined. Marine biologist Darrell Blatchley, who also owns the D’Bone Collector Museum, said that in the 10 years they have examined dead whales and dolphins, 57 of them were found to have died due to accumulated rubbish and plastic in their stomachs.

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