Nov 102019
 
 November 10, 2019  Posted by at 10:30 am Finance Tagged with: , , , , , , , ,  8 Responses »


Paul Gauguin Breton girls by the sea 1889

 

Post Testimony Interview with Randy Credico (Craig Murray)
Nunes Demands Schiff -After Lying-, Whistleblower And Hunter Biden Testify (ZH)
Schiff Says Whistleblower Testimony Is ‘Redundant And Unnecessary’ (CNN)
Yovanovitch Communicated With Dem Staffer On ‘Delicate’ Issue (Fox)
Pentagon Asserts US Military Authority Over Syrian Oil Fields (CD)
Italian Court Convicts DB, Nomura In Monte Paschi Derivative Trial (R.)

 

 

Been reading a lot this morning about the UK, which has a general election in 5 weeks. The antisemitism smears against Jeremy Corbyn are getting much louder for that purpose, while Boris Johnson is trying to squash two allegations against himself, one a police investigation into a deal he made with an American woman he allegedly had an affair with, the other a report that a number of Russian billionaires donated hefty sums to the Tory party. But I’ll leave that stuff alone for now, there’ll be plenty coming.

Still, it’s striking that the “campaign” is all about these things, and hardly about policy. Though of course Labour’s plans to change Britain are attacked by the entire press for being unaffordable.

 

 

Craig Murray in this article links to an Aug 4 article he wrote, that said:

“..what should have killed off “Russiagate” forever is the judgement of Judge John G Koeltl of the Federal District Court of New York. In a lawsuit brought by the Democratic National Committee against Russia and against Wikileaks, and against inter alia Donald Trump Jr, Jared Kushner, Paul Manafort and Julian Assange, for the first time the claims of collusion between Trump and Russia were subjected to actual scrutiny in a court of law. And Judge Koeltl concluded that, quite simply,the claims made as the basis of Russiagate are insufficient to even warrant a hearing.”

He also says here, as I have often said myself, that there never was a link between Russia, Assange and/or Roger Stone. As if that is not glaringly obvious enough.

Post Testimony Interview with Randy Credico (Craig Murray)

Following his appearance as the main witness for the prosecution against former Trump aide Roger Stone, my good friend Randy Credico has had the entire American mainstream media chasing him for an interview. He has however decided to give only this single interview to me, which is put out here and which is free for everybody to use, with acknowledgement.

Five of the seven charges against Stone relate directly to Randy, who is the witness that Stone is accused of tampering with and attempting to intimidate. There is a tremendous irony here. The Mueller investigation was set up to reveal links between the Trump campaign, Russia and Wikileaks. There are no such links, as has already been proven in another US court. Roger Stone ends up being charged with lying to the Senate Intelligence Committee, by pretending he had links to Wikileaks when he did not. He is also charged with trying to intimidate Randy into saying there was such a link and Randy was the back channel; which I myself can attest is nonsense.

The Mueller investigation has thus ultimately ended up prosecuting people for telling the same pack of lies that Mueller himself was pushing. The Clinton media, including CNN, the Washington Post and New York Times, are baffled by this. They follow the Stone trial assiduously from delight in seeing a long term Trump hanger-on brought down, and in the hope something will come out about Wikileaks or Russia. Their reporting, as that of the BBC, has been deliberately vague on why Stone is being charged, contriving to leave their audience with the impression that Stone’s trial proves Trump connections to Wikileaks and Russia, when in fact it proves the precise opposite. A fact you will never learn from the mainstream media. Which is why I am doing this at 2am on a very cold Edinburgh night, for the small but vital audience which is interested in the truth.

Read more …

Why would the GOP bother anymore? They won’t get their witnesses. This is fast becoming a banana republic-style show trial.

Nunes Demands Schiff -After Lying-, Whistleblower And Hunter Biden Testify (ZH)

Rep. Devin Nunes (R-CA) made a formal request that House Intelligence Committee Chairman Adam Schiff (D-CA) testify in a closed-door session as part of the impeachment inquiry against President Trump. “Prior to the start of your public show trial next week, at least one additional closed-door deposition must take place,” reads a Friday letter from Nunes to Schiff. “As the American public is now aware, in August 2019 you and/or your staff met with or talked to the whistleblower who raised an issue with President Trump’s phone call with Ukrainian President Zelensky. Although you publicly claim nothing inappropriate was discussed, the three committees deserve to hear directly from you the substance and circumstances surrounding any discussions conducted with the whistleblower, and any instructions you issued regarding those discussions.”

“Given that you have reneged on your public commitment to let the committees interview the whistleblower directly, you are the only individual who can provide clarity as to these conversations,” the letter reads. Schiff lied about his office’s contacts with the whistleblower – initially claiming “We have not spoken directly with the whistleblower,” when in fact the whistleblower, now known as CIA officer Eric Ciaramella, reached out to a committee aide who directed him to Democratic attorney Mark Zaid (who proudly obtained government security clearances for pedophiles and enjoys walking around children’s theme parks alone). That said, Schiff maintains he hasn’t personally spoken with Ciaramella, and that his committee was only given vague information as to the nature of the complaint.

Republicans, meanwhile, are gearing up for the public hearings by assembling a list of proposed witnesses – although Democrats have the final say over who can appear. Nunes’ and Republicans’ effort to devise a strategy going forward comes after the House approved rules for the impeachment inquiry process last week. While Republicans opposed the resolution and complained the rules were unfair, Democrats still gave GOP lawmakers the ability to subpoena witnesses with the concurrence of Democratic committee chairs. If the chair does not consent, the minority can appeal to the full committee.

This process still gives Democrats final say over witnesses. A GOP source told Fox News this week that it’s unlikely Democrats would go along with the efforts to call Schiff — who is essentially leading the impeachment probe. -Fox News On Saturday, Nunes wrote another letter to Schiff with a list of witnesses the GOP would like to call, including Joe Biden’s son Hunter and Ciaramella.

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That’s just his opinion and interpretation. How did that become the law?

Schiff Says Whistleblower Testimony Is ‘Redundant And Unnecessary’ (CNN)

House Intelligence Chairman Adam Schiff made clear on Saturday that the Ukraine whistleblower won’t be testifying in the impeachment inquiry, arguing that the individual’s testimony would be “redundant and unnecessary.” House Republicans earlier Saturday had submitted a list of witnesses to Democrats that they’d like to testify as part of the chamber’s impeachment inquiry into President Donald Trump and Ukraine. The list included the whistleblower and former Vice President Joe Biden’s son Hunter Biden. In a letter obtained by CNN, Schiff goes further than he did earlier in the day when he said in a statement that his committee would evaluate the witness requests and “give due consideration to witnesses within the scope of the impeachment inquiry, as voted on by the House.”

“The impeachment inquiry, moreover, has gathered an ever-growing body of evidence — from witnesses and documents, including the President’s own words in his July 25 call record — that not only confirms, but far exceeds, the initial information in the whistleblower’s complaint. The whistleblower’s testimony is therefore redundant and unnecessary. In light of the President’s threats, the individual’s appearance before us would only place their personal safety at grave risk,” Schiff wrote to California Rep. Devin Nunes, the top Republican on the House Intelligence Committee.

The comments by Schiff, one of the Democrats in charge of the inquiry, are the clearest yet that the whistleblower won’t testify in the probe, a dramatic shift since the beginning of the impeachment inquiry in September when the individual’s testimony was viewed as paramount. The committee had engaged in a round of private talks to protect the whistleblower while allowing him or her to provide testimony, including disguising the individual’s identity or conducting the interview off-site. But as a parade of witnesses have corroborated the whistleblower’s account, detailing the under-the-radar push by the President and his allies to have Ukraine probe his political foes, and as Trump has stepped up his attacks against the person, Democrats have abandoned the idea of securing the testimony.

In a letter to Schiff earlier Saturday, Republicans had listed the anonymous whistleblower, Hunter Biden, former US special envoy for Ukraine Kurt Volker, high-ranking State Department official David Hale and Tim Morrison, the top Russia and Europe adviser on the National Security Council among the people they wanted to testify. The GOP also requested Nellie Ohr, a former Fusion GPS contractor, and Alexandra Chalupa, a former Democratic National Committee staffer —a sign that Republicans still want to focus on unsubstantiated claims related to the 2016 presidential campaign. “As of right now, they are giving us no witnesses,” Nunes told Fox News’ Jeanine Pirro on Saturday night.

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Yovanovitch hates Trump (and Russia too). Why would he let her keep her job? Isn’t it a better idea to work with people who don’t hate you?

Yovanovitch Communicated With Dem Staffer On ‘Delicate’ Issue (Fox)

Former U.S. Ambassador to Ukraine Marie Yovanovitch, a key witness in House Democrats’ impeachment inquiry, communicated via her personal email account with a Democratic congressional staffer concerning a “quite delicate” and “time-sensitive” matter — just two days after the whistleblower complaint that kickstarted the inquiry was filed, and a month before the complaint became public, emails obtained Thursday by Fox News’ “Tucker Carlson Tonight” show. The emails appear to contradict Yovanovitch’s deposition on Capitol Hill last month, in which she told U.S. Rep. Lee Zeldin, R-N.Y., about an email she received Aug. 14 from the staffer, Laura Carey — but indicated under oath that she never responded to it.

The communication came “from the Foreign Affairs Committee,” and “they wanted me to come in and talk about, I guess, the circumstances of my departure” in May as ambassador to Ukraine, Yovanovitch testified, describing Carey’s initial email. “I alerted the State Department, because I’m still an employee, and so, matters are generally handled through the State Department.” Yovanovitch continued: “So, she emailed me. I alerted the State Department and, you know, asked them to handle the correspondence. And, she emailed me again and said, you know, ‘Who should I be in touch with?'” Fox News is told it is a breach of normal procedure for congressional staff to reach out to a current State Department employee at their personal email address for official business.

Asked directly whether she responded to Carey’s overtures, Yovanovitch testified only that someone in the “Legislative Affairs Office” at the State Department had responded to Carey, to the best of her knowledge. Yovanovitch did not indicate that she had responded to Carey’s first email in any way, and testified explicitly that she did not reply to Carey’s follow-up email concerning whom she should contact at the State Department. However, emails obtained by Fox News’ “Tucker Carlson Tonight” showed that in fact, Yovanovitch had responded to Carey’s initial Aug. 14 email, writing that she “would love to reconnect and look forward to chatting with you.”

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They are Syrian. Oil. Fields.

Pentagon Asserts US Military Authority Over Syrian Oil Fields (CD)

Pentagon officials asserted Thursday U.S. military authority over Syrian oil fields because U.S. forces are acting under the goal of “protecting Americans from terrorist activity” and would be within their rights to shoot a representative of the Syrian government who attempted to retake control over that country’s national resource. The comments came from Pentagon spokesperson Jonathan Hoffman and Navy Rear Admiral William D. Byrne Jr. during a press briefing in which the two men were asked repeatedly about the legal basis the U.S. is claiming to control Syrian oil fields. The briefing came less than two weeks after Defense Secretary Mark Esper said, “That’s our mission, to secure the oil fields” in the Deir ez-Zor area of eastern Syria.

President Donald Trump’s comments before and after that remark —”We’re going to be protecting [the oil], and we’ll be deciding what we’re going to do with it in the future,” and “The oil… can help us, because we should be able to take some”— were seized on by critics who claimed Trump was suggesting violating international law by plundering another country’s resources and openly saying the U.S. was pursuing war for oil. Hoffman, in his comments Thursday, gave a different message—that “the revenue from this is not going to the U.S. This is going to the SDF,” referring to the Kurdish-led and U.S.-allied Syrian Democratic Forces, who are battling ISIS. Byrne claimed that the U.S. has been waging the oil field control mission alongside SDF and that the goal was to prevent ISIS from obtaining the oil revenue.

But, as one reporter pointed out, ISIS fighters “have no armor. They have no aircraft.” “Do they have the capability to actually seize the oil fields?” the reporter asked. “And isn’t this really about Russia and Syria seizing those oil fields?” Hoffman replied that the goal was “to prevent a resurgence” of ISIS which would be facilitated if the terrorist group had access to the oil revenue.

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Bankers in jail? What?

Italian Court Convicts DB, Nomura In Monte Paschi Derivative Trial (R.)

An Italian court has convicted 13 former bankers from Deutsche Bank, Nomura and Monte dei Paschi di Siena over derivative deals that prosecutors say helped the Tuscan bank hide losses in one of the country’s biggest financial scandals. The verdict, read in court on Friday by lead judge Lorella Trovato, also ordered fines and asset seizures worth a total of €68 million from Deutsche Bank and €91.5 million from Nomura. Monte dei Paschi reached a settlement with the court over the case in 2016 at a cost of €10.6 million. The case centres on two complex derivatives transactions – known as Alexandria and Santorini – that Nomura and Deutsche Bank arranged for Monte dei Paschi in 2009.

Prosecutors said the deals helped Monte dei Paschi, which was founded in 1472 and is Italy’s fourth biggest lender, hide more than €2 billion of losses racked up after the costly acquisition of a smaller rival in 2008. [..] Monte dei Paschi’s former chairman Giuseppe Mussari, one of five former executives from the Tuscan bank on trial, was given the heaviest sentence of seven years and six months in jail. Deutsche Bank and Nomura were both convicted as institutions for failing to prevent wrongdoing by their employees. All six defendants linked to Deutsche Bank and the two who once worked for Nomura were handed jail terms.

They include sentences of four years and eight months each for Ivor Dunbar, former co-head of Global Capital Markets at the German bank, Michele Faissola, its former head of Global Rates, and Michele Foresti, its former head of Structured Trading. Nomura’s former chief executive for the EMEA region, Sadeq Sayeed, was also given a sentence of four years and eight months while Raffaele Ricci, the former head of the bank’s EMEA Sales, was handed a sentence of three years and 5 months.

Read more …

 

The UK has an Editors Code of Practice.

 

 

 

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Dec 222016
 
 December 22, 2016  Posted by at 10:06 am Finance Tagged with: , , , , , , , , , ,  2 Responses »


Shirley Temple Chrismas 1939

Americans Are Now In More Debt Than They Were Before The Financial Crisis (MW)
Americans Want To ‘Live Big’ In The Trump Era (CNBC)
Percentage of Young Americans Living With Parents Rises to 75-Year High (WSJ)
Republican Presidents Can’t Seem To Avoid Recessions (BBG)
Plan To Tax US Imports Has Better Odds Of Becoming Law Than Many Think (CNBC)
Home Ownership Among 25-Year-Olds In England, Wales Halved In 20 Years (G.)
Monte Paschi Headed for Nationalization After Sale Failure (BBG)
China’s Currency Outflows Are Much Larger Than They Appear (MW)
Glenn Greenwald Weighs In On Election Hacks (MSNBC)
EU To Boost Border Checks On Cash, Gold To Tackle ‘Terrorism Financing’ (R.)
EU Court Says Mass Data Retention Illegal (R.)
Greek Low-Pensioners Stand Long Queues For The Christmas Bonus (KTG)
The Automatic Earth in Greece: Big Dreams for 2017 (Automatic Earth)

 

 

What a surprise.

Americans Are Now In More Debt Than They Were Before The Financial Crisis (MW)

Americans may soon exceed the amount of credit-card debt they racked up during the Great Recession. The average household with credit card debt owes $16,061, up 10% from $14,546 10 years ago and $15,762 last year, according to a new analysis of Federal Reserve Bank of New York and U.S. Census Bureau data by the personal finance company NerdWallet. The amount of household credit card debt is still down from a recent high of $16,912 in 2008 at the height of the recession. The U.S. won’t hit pre-recession credit card debt levels until the end of 2019, NerdWallet’s analysis projects. Total debt (including mortgages, auto loans and student loans) is expected to surpass the amounts owed at the beginning of the Great Recession by the end of 2016, NerdWallet found, mostly due to mortgages and student loans.

Mortgage debt jumped from $159,020 per household in 2010 to $172,806 in 2016, and debt from auto loans grew from $20,032 in 2010 to $28,535 in 2016. Nationwide, total household debt (including mortgages, auto loans and student loans) now equals almost $12.4 trillion, up from about $11.7 trillion in 2010. Why the growth in debt, given that many consumers should be skittish about living beyond their needs after the credit bubble of the Great Recession? The reason concerns a problem that has long dogged Americans. Median household income has grown 28% over the last 13 years, said Sean McQuay, a personal finance expert at NerdWallet, but expenses have outpaced it significantly. Case in point: Medical costs increased by 57% and food and beverage prices by 36% in that period.

Many Americans find it difficult to stick to savings goals. And that’s even worse if you have a family. The amount that a two-parent, two-child family needs just to pay the bills (but not have money left over for savings) ranges from about $50,000 to more than $100,000 depending on where a family lives, according to data from the nonprofit and nonpartisan think tank the Economic Policy Institute. Rent has risen 3.9% in the last year alone, according to the Bureau of Labor Statistics. “The economy is doing better, but we’re really not seeing that trickle down to individual households the way we’d hope,” McQuay said. Rising living costs mean, if anything, consumers should pay extra attention to their budgets in the next year, he said. “We’re allergic to the idea of budgeting,” he said. “It sounds just as awful as dieting.”

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No contradiction whatsoever with the article above.

Americans Want To ‘Live Big(ly)’ In The Trump Era (CNBC)

In the Trump era, excess is in and modesty is out. After years of stealth wealth, humility and downsizing, the president-elect is ushering in a new era of living large, Nobel Prize-winning economist Robert Shiller said Wednesday. “We used to be more into modest living,” the Yale professor told CNBC, speaking about the years after the financial crisis. “Now people are thinking, ‘[that] doesn’t work.’ You know? You have to live big-league and you’re on your way. While there’s no empirical evidence pointing to this shift, Shiller said the excitement is visible at Trump rallies and in the stock market. Despite a slight dip on Wednesday, the Dow Jones industrial average remained near 20,000.

Shiller’s comments add to budding sentiment that America’s new billionaire-in-chief — with his gold-plated penthouse, private jumbo jet and multiple mansions — could shift American attitudes away from inequality and toward the 1980s-style aspiration and worship of wealth. That quest for the good life could also stimulate spending — particularly in housing, Shiller said. “Trump is a real estate man, right? He talks about living big, living large. I can imagine that this will boost housing demand as well, among at least those who are excited by Trump,” he said. Still, Shiller cautioned that investors shouldn’t get too comfortable, as the Trump rally could end up like Calvin Coolidge’s run nearly a century ago. Coolidge was president during the Roaring ’20s, before the decade-long Great Depression started in 1929. “It could be like … Coolidge prosperity. It went for a while and it ended badly,” he said.

“There’s a difference, though, between Calvin Coolidge and Donald Trump, if you haven’t noticed. Trump is way more controversial,” Shiller added.

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But bigly.

Percentage of Young Americans Living With Parents Rises to 75-Year High (WSJ)

Almost 40% of young Americans were living with their parents, siblings or other relatives in 2015, the largest percentage since 1940, according to an analysis of census data by real estate tracker Trulia. Despite a rebounding economy and recent job growth, the share of those between the ages of 18 and 34 doubling up with parents or other family members has been rising since 2005.

Back then, before the start of the last recession, roughly one out of three were living with family. The trend runs counter to that of previous economic cycles, when after a recession-related spike, the number of younger Americans living with relatives declined as the economy improved. [..] The share of young Americans living with parents hit a high of 40.9% in 1940, just a year after the official end of the Great Depression, and fell to a low of 24.1% in 1960. It hovered between about 31% and 33% from 1980 to the mid-2000s, when the rate started climbing steadily.

The result is that there is far less demand for housing than would be expected for the millennial generation, now the largest in U.S. history. The number of adults under age 30 has increased by 5 million over the last decade, but the number of households for that age group grew by just 200,000 over the same period, according to the Harvard Joint Center for Housing Studies. Analysts point to rising rents in many cities and tough mortgage-lending standards as the culprit, making it difficult for younger Americans to strike out on their own.

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It’s been a while. Anything to do with QE?

Republican Presidents Can’t Seem To Avoid Recessions (BBG)

Here’s a frightening factoid for Donald Trump as he prepares to take office next month: Every Republican president since World War II has been in power during at least one recession. Of course, as the saying goes, past performance is not necessarily indicative of future results and the billionaire developer may well avoid a downturn on his watch. But with the economic expansion soon to become the third-longest on record, the risk of a contraction occurring during his time in office can’t be cavalierly dismissed. “Republican presidents seemingly can’t do without” recessions, Joachim Fels, global economic adviser for PIMCO, wrote in a blog post dated Dec. 12. The same can’t be said of Democrats. Outgoing President Barack Obama did preside over an economic downturn in his first six months in office – one he inherited from his predecessor, Republican George W. Bush.

John F. Kennedy took office just before a recession ended. And the U.S. entered and exited slumps when Jimmy Carter and Harry Truman were in charge. But it was recession-free during the tenures of Democrats Lyndon Johnson in the 1960s and Bill Clinton in the 1990s. “The U.S. economy has performed better when the president of the United States is a Democrat rather than a Republican,” Princeton University professors Alan Blinder and Mark Watson wrote in a paper published in the American Economic Review this year. The difference isn’t due to more expansionary fiscal and monetary policies under Democrats, according to Blinder, who served in the Clinton White House, and Watson. Instead it appears to stem from less costly oil shocks, a more favorable international environment, productivity-boosting technological advances and perhaps more optimistic consumers, they wrote. Some of those disparities may be down to better policies, but luck also played a role.

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It’ll happen.

Plan To Tax US Imports Has Better Odds Of Becoming Law Than Many Think (CNBC)

A controversial proposal to tax all goods and services coming into the United States has a better chance of becoming law than many on Wall Street suspect. The so-called “border-adjusted” tax is part of the House tax overhaul plan that also would reduce the corporate rate from 35% to 20%. The idea is to tax goods as they come into the country from overseas, but to avoid taxing U.S. exports at all. For instance, a car imported into the U.S. from Mexico would be taxed, but the American-made steel sent to Mexico would not.

Proponents say the proposed “destination tax” would encourage more U.S. production of goods and create U.S. jobs. But opponents say it will send prices higher, unfairly cut profits for some sectors, particularly the retail industry, and could prompt retaliation. The idea is similar but not quite like a VAT, or value added tax, common in other countries. The stock market has been celebrating promises of lower corporate taxes that could boost business spending, but it has been ignoring proposals that could sting some companies’ bottom lines. Retailers, automakers and refiners are among the industries that could be hit if imports are taxed.

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What you get from blowing bubbles. You destroy societies.

Home Ownership Among 25-Year-Olds In England, Wales Halved In 20 Years (G.)

The proportion of 25-year-olds who own a home has more than halved over the past 20 years, according to a report that points to the generational impact of the housing crisis. Home ownership has dropped from 46% of all 25-year-olds two decades ago to 20% now, the Local Government Association said. The LGA, which represents more than 370 councils in England and Wales, said more homes for affordable or social rent are needed to allow people to save up for a deposit and get on the housing ladder. The LGA’s housing spokesman, Cllr Martin Tett, said: “Our figures show just how wide the generational home ownership gap is in this country. A shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities.

“The housing crisis is complex and is forcing difficult choices on families, distorting places, and hampering growth. But there is a huge opportunity, as investment in building the right homes in the right places has massive wider benefits for people and places.” Analysis for the LGA by the estate agent Savills found that the construction of social rented homes – owned and managed by local authorities and housing associations – plunged by 88% between 1995-96 and 2015-16. The association warned that the sharp fall, combined with rents rising at a faster pace than incomes, meant that home ownership was becoming more difficult for an increasing number of people. Home ownership across all age groups has fallen by 4.4% since 2008, while private renters increased by 5.1%, the LGA said.

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Beppe Grillo wants full nationalization. The political class just blunders on.

Monte Paschi Headed for Nationalization After Sale Failure (BBG)

Banca Monte dei Paschi di Siena SpA will probably fail to lure sufficient demand for a €5 billion capital increase, leading to what would be the country’s biggest bank nationalization in decades, said people with knowledge of the matter. No anchor investor has shown interest in the stocks sale, the Siena-based company said in a statement late Wednesday. Two debt-for-equity swap offers will raise about €2 billion, with investors converting bonds for about €2.5 billion, the lender said. The interest is probably insufficient to pull the deal off, said the people, who asked not to be identified before a final assessment. Qatar’s sovereign-wealth fund, which had considered an investment, hasn’t committed to buying shares, people with knowledge of the matter have said.

Other institutions that were considering buying shares have indicated that they would put funds in the troubled bank only if it’s able to raise €1 billion from cornerstone investors, according to the people. Monte Paschi Chief Executive Officer Marco Morelli had crisscrossed the globe looking for investors to back the bank’s reorganization plan, which included a share sale, a debt-for-equity swap and the sale of €28 billion worth of soured loans. A nationalization of Monte Paschi, the biggest in Italy since the 1930s, could be followed by rescues for lenders including Veneto Banca and Banca Popolare di Vicenza as part of a €20 billion government package. State intervention and a hit to bondholders is the most likely scenario for Monte Paschi, Manuela Meroni, an analyst at Intesa Sanpaolo SpA wrote in a note to clients Thursday. “The solution to the Monte Paschi issue could reduce the systemic risk for the sector,” Meroni wrote.

Monte Paschi shares failed to open in Milan on Thursday after being indicated lower. The shares have dropped 87% this year, trimming the bank’s value to €478 million. If government funds are used in the bank’s recapitalization, bondholders will probably have to take losses under European burden-sharing rules. The cabinet is considering a so-called precautionary recapitalization that may reduce the potential losses. A cabinet meeting may be held as early as Thursday evening to rescue Monte Paschi, newspaper La Stampa reported, without saying where it got the information.

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Especially in the rear-view mirror.

China’s Currency Outflows Are Much Larger Than They Appear (MW)

Investors have been drastically underestimating the pace at which money is leaving China. Since June, the People’s Bank of China has liquidated $1.1 trillion in foreign-currency reserves, according to a calculation by a team of analysts at Goldman Sachs. That’s nearly double the $540 billion reported by the PBOC, when adjusted for shifts in the yuan’s valuation, between August 2015 and November 2016. Goldman arrived at its figure by incorporating data provided by the State Authority on Foreign Exchange, the arm of the PBOC responsible for currency flows. That data details flows that are considered approved Chinese corporate demand, as well as money flowing through the offshore yuan market. If one factors in these outflows, the total amount of capital that has left China in that time period balloons from the reported $540 billion to $1.1 trillion, Goldman said. Goldman illustrates these flows in a chart, below:

“Since June, this data has continued to suggest significantly larger [foreign exchange] sales by the PBOC than is implied by FX reserve data [the gap is about $25 billion a month on average in the last several months],” said the team, led by MK Tang, executive director of global investment research Asia, in a research note released to the media on Monday. The PBOC has been selling its foreign currency reserves, which have declined for 14 straight months through November, to help support its rapidly weakened currency, the yuan. After selling off earlier in the year, the dollar has strengthened rapidly against most major currencies including the yuan. In fact, dollar gains accelerated following President-elect Donald Trump’s Nov. 8 electoral victory. Presently, the yuan, USDCNY, +0.0706% also known as the renminbi, is trading near its weakest level against the dollar since late 2008.

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Greenwald is very clear. But help me out: does the interviewer try to imply that there is circumstantial evidence regardless of there not being any? That because a lot of so-and-so’s have said there is, that somehow means there must be?

Glenn Greenwald Weighs In On Election Hacks (MSNBC)

Co-founding editor of The Intercept, Glenn Greenwald, talks to Ari Melber about the investigation into Russian hacks involving the 2016 election.

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Never let a good crisis go to waste. Zero credibility.

EU To Boost Border Checks On Cash, Gold To Tackle ‘Terrorism Financing’ (R.)

The European Commission proposed tightening controls on cash and precious metals transfers from outside the EU on Wednesday, in a bid to shut down one route for funding of militant attacks on the continent. The move follows Monday’s attack on a Christmas market in Berlin, where 12 people were killed as a truck plowed into a crowd. It is part of an EU “action plan against terrorist financing” unveiled after the bombings and shootings in Paris in November 2015. Under the new proposals, customs officials in EU states will be able to step up checks on cash and prepaid payment cards transferred via the post or through freight shipments.

Authorities will also be given the power to seize cash or precious metals carried by suspect individuals entering the EU. People carrying more than 10,000 euros ($10,391.00) in cash are already required to declare this at customs upon entering the EU. The new rules would allow authorities to seize money even below that threshold “where there are suspicions of criminal activity,” the EU executive commission said in a note. “With today’s proposals, we strengthen our legal means to disrupt and cut off the financial sources of terrorists and criminals,” the commission vice-president Frans Timmermans said.

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Not every European is a complete fool yet.

EU Court Says Mass Data Retention Illegal (R.)

The mass retention of data is illegal, the European Union’s highest court said on Wednesday, dealing a blow to Britain’s newly passed surveillance law and signaling that security concerns do not justify excessive privacy infringements. The Court of Justice of the European Union (ECJ) said its ruling was based on the view that holding traffic and location data en masse allowed “very precise conclusions to be drawn concerning the private lives of the persons whose data has been retained”. Such interference with people’s privacy could only be justified by the objective of fighting serious crime and access to data should be subject to prior review by a court or independent body except in urgent cases, it said.

The ruling is likely to upset governments seeking to deal with the threat of attacks such as those in Paris and Brussels and, on Monday, in Berlin. Those attacks have reinforced calls from governments for security agencies to be given greater powers to protect citizens, while privacy advocates – who welcomed the ruling – say mass retention of data is ineffective in the fight against such crimes. The perpetual debate over privacy versus security took on an extra dimension after Edward Snowden leaked details of mass spying by U.S. and British agents in 2013. The ECJ said governments could demand targeted data retention subject to strict safeguards such as limiting it to a particular geographic location but the data must be stored within the EU given the risk of unlawful access.

The court was responding to challenges against data retention laws in Britain and Sweden on the grounds that they were no longer valid after the ECJ struck down an EU-wide data retention law in 2014. A spokesman for Britain’s interior ministry said it was disappointed with the judgment and would be considering its potential implications in the case launched before Britain voted in June to quit the European Union. “Given the importance of communications data to preventing and detecting crime, we will ensure plans are in place so that the police and other public authorities can continue to acquire such data in a way that is consistent with EU law and our obligation to protect the public,” he said.

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Pretty cold for Athens too.

Greek Low-Pensioners Stand Long Queues For The Christmas Bonus (KTG)

Greece’s low-pensioners have been waiting for the extra Christmas bonus announced by Prime Minister Alexis Tsipras for days. The magic, sparkling moment was set as December 22nd. The money started to flow into bank accounts already since Wednesday afternoon. Defying the icy-cold weather and Schaeuble’s objections, dozens of elderly rushed to ATMs to withdraw the unexpected Christmas present together with the pension for January. Those unable to use cards rushed to the banks as early as possible in the morning and stood line for many hours before the doors opened. 1.6 million low-pensioners receive the Christmas bonus which is the difference of the pension and lump sum to the amount of €850.

If a pensioner receives €600, the Christmas bonus will be €250. Due to capital controls, the amount that can be withdrawn within two weeks is €840. At the same time, 240,000 low pensioners will see the poverty allowance (EKAS) cut by 50%. It means they will lose €1,380 per year. I asked a neighbor how will he spend the Christmas bonus. “I will have my bones warmed,” the 87-year-old answered with a bright smile. He has been living without heating for the last three years. He went broke and spent all his savings after austerity cuts in 2010 deprived him of the 13th and 14th pension. He lost €1,200 per year.

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My article from yesterday. Please help us help.

The Automatic Earth in Greece: Big Dreams for 2017 (Automatic Earth)

Both Konstantinos and myself -and all the other volunteers at O Allos Anthropos- want to thank you so much for all the help you’ve given over the past year -and in 2015-. We’re around $30,000 for 2016 alone, another $5000 since my last article 4 weeks ago. I swear, for as long as I live, this will never cease to amaze me. And then of course what happens is people start thinking and dreaming about what more they can do for those in peril. Wouldn’t you know…

A Merry Christmas to all of you, to all of us. Very Merry. God bless us, every one. Thank you for everything.

If I may make a last suggestion, please forward this ‘dream’ to anyone you know -and even those you don’t-, by mail, Twitter, Facebook, Instagram, word of mouth, any which way you can think of. Go to your local mayor or town council, suggest they can help and get -loudly- recognized for it. There may be a dream involved for 2017, but that was our notion a year ago as well, and look what we’ve achieved a year later: it is very real indeed. And anyone, everyone can become part of that reality for just a few bucks. If the institutions won’t do it, perhaps the people themselves should. That doesn’t even sound all that crazy or farfetched. There’s a lot of us.


Konstantinos Polychronopoulos, Athens December 2016

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Dec 052016
 
 December 5, 2016  Posted by at 9:38 am Finance Tagged with: , , , , , , , , , ,  3 Responses »


Don’t let the door hit you on the way out..

Bloody Hell, John Key Just Quit As Prime Minister (Spinoff)
Trump Picks Twitter Fight With China (AFP)
Italy PM Renzi Quits After Crushing Referendum Defeat (AFP)
Italy Bank Recapitalizations A Harder Road After Referendum Flop (CNBC)
Austria Rejects Far-Right Candidate In Presidential Election (G.)
Greece Must Reform Or Leave Eurozone – Schäuble (G.)
Greece Sees Final Solution On Debt Crisis Amid Euro Uncertainty (R.)
Money-Laundering Networks Thrive Amid India’s Cash-Ban Chaos (BBG)
China Regulator Slams Leveraged Stock Acquirers as ‘Robbers’ (BBG)
Vancouver Housing Tax Pushes Chinese Into $1 Million Seattle Homes (BBG)
Pensions Time Bomb Spells Disaster For US Economy (RVTV)
US Reshaping Budget To Account For Russian Military Threat (R.)
Army Denies Dakota Pipeline Permit (R.)

 

 

“John Key took New Zealand, a nation of just 4.5m people, from almost no debt to $100 billion debt.” – Kim Dotcom

Bloody Hell, John Key Just Quit As Prime Minister (Spinoff)

It is one of the hoary rules of politics that leaders never – almost never – go of their own accord. But John Key, not for the first time, has proved his resistance to the forces of political gravity, announcing on Monday afternoon he will exit on his own terms. “For me this feels the right time to go,” the prime minister of New Zealand said. Already the conspiracy theorists are in full flight but there is no evidence to suggest he is doing anything but that: going on his own terms, sitting as strongly as ever, a year out from the next election. He’s only 55. A spring chicken in political terms.

Key said he “feels like I am going out on top”, that he had “never seen myself as a career politician” and “didn’t want to find myself in the position many leaders around the world find themselves, which is disgruntled and unhappy”. Some media are reporting he’s leaving “for family reasons”. But while he did say he’d made sacrifices on that front and family was “a factor”, this wasn’t a “spend more time with my family” exit, or not with that euphemistic freight. The National party under Key has been lauded, rightly, for its ability to renew, with underperforming MPs finding themselves nudged out or shouldered towards retirement. But now the prime minister has performed the biggest renewal of the lot. “To be blunt, I’ve taken the knife to some other people, and now I’ve taken the knife to myself.”

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Got to admit he’s way more entertaining in person than Saturday Night Live’s impression of him is. And these numbers are real:

“China charges an average 15.6% tariff on US agricultural imports and 9% on other goods [..] Chinese farm products pay 4.4% and other goods 3.6% when coming into the United States.”

Trump Picks Twitter Fight With China (AFP)

US President-elect Donald Trump fired a Twitter broadside at China on Sunday, accusing the Asian giant of currency manipulation and military expansionism in the South China Sea. The taunt came two days after Trump risked offending Beijing by accepting a call from the Taiwanese president, and heralded the prospect of a trade battle between the world’s largest economies. China was a frequent target of Trump’s during his presidential campaign and, as he prepares to take office next month, every sign points to his taking an aggressive line with Beijing. “Did China ask us if it was OK to devalue their currency (making it hard for our companies to compete), heavily tax our products going into their country (the US doesn’t tax them) or to build a massive military complex in the middle of the South China Sea?” he demanded, adding: “I don’t think so!”

China is the United States’ largest trading partner, but America ran a $366 billion deficit with Beijing in goods and services in 2015, up 6.6% on the year before. US politicians often accuse China of artificially depressing its currency, the renminbi, in order to boost its exports – its value has fallen by around 15% in the past two-and-half years. Trump has vowed to formally declare China a “currency manipulator” on the first day of his presidency, which would oblige the US Treasury to open negotiations with Beijing on allowing the renminbi to rise. With China holding about a trillion dollars in US government debt, Washington would have little leverage in such talks, but the declaration would harm ties and boost the prospect of a trade war. China charges an average 15.6% tariff on US agricultural imports and 9% on other goods, according to the WTO. Chinese farm products pay 4.4% and other goods 3.6% when coming into the United States.

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“Five Star founder and leader Beppe Grillo called for an election to be called “within a week”..” Not going to happen say the tea leaves.

Italy PM Renzi Quits After Crushing Referendum Defeat (AFP)

Italian Prime Minister Matteo Renzi announced his resignation on Monday, hours after it was confirmed he had suffered a crushing defeat in a referendum on constitutional reform. “My experience of government finishes here,” Renzi told a press conference, acknowledging that the No campaign had won an “extraordinarily clear” victory in a vote on which he had staked his future. Interior Ministry projections suggested the No camp, led by the populist Five Star Movement, had carried the vote by a margin of almost 60-40 with a near 70% turnout underlining the high stakes and the intensity of the debate. Markets seemed to take Renzi’s departure in their stride. Stocks and the euro fell in early trading in Asia but there were no signs of panic with the possibility of his resignation having already been largely factored in.

Renzi said he would be visiting President Sergio Mattarella on Monday to hand in his resignation following a final meeting of his cabinet. Mattarella will then be charged with brokering the appointment of a new government or, if he can’t do that, ordering early elections. Five Star founder and leader Beppe Grillo called for an election to be called “within a week” on the basis of a recently adopted electoral law which is designed to ensure the leading party has a parliamentary majority – a position Five Star could well find themselves in at the next election. [..] Most analysts see early elections as unlikely with the most probable scenario involving Renzi’s administration being replaced by a caretaker one dominated by his Democratic Party which will carry on until an election due to take place by the spring of 2018. Finance Minister Pier Carlo Padoan is the favourite to succeed Renzi as prime minister and the outgoing leader may stay on as head of his party – which would leave him well-placed for a potential comeback to frontline politics at the next election, whenever it is.

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Monte dei Paschi down 7.5% this morning. “Monte Paschi’s shares are trading at a 94% discount to the value of its assets.” “Italian households have highest share of wealth invested in bank bonds in the developed world..”

But Draghi to the rescue!

Italy Bank Recapitalizations A Harder Road After Referendum Flop (CNBC)

Recapitalization of Italy’s troubled banks will be harder following the failure of a referendum pushed by Prime Minister Matteo Renzi, with ratings agencies among key actors to watch as delays may loom as the country likely heads to early polls next year. Renzi resigned after failing to win a mandate to curb the powers of the upper house legislature, throwing into questions steps such as plans by Banca Monte dei Paschi di Siena to conduct a €5 billion capital increase this week, a solution backed by the outgoing premier. Barclays Economics Research, in a note to clients following the defeat, suggested that concerns surrounding Italian banks are growing.

“This outcome is likely to exacerbate concerns about the Italian banking sector and increase downgrade risks from rating agencies such as DBRS, although we do not expect rating agencies to act anytime soon, as they are likely to wait for political developments before taking any rating decision,” Barclays said in the Dec. 5 note. Italy’s banking sector has struggled with toxic debts as 14 of the largest banks sit on €286 billion of bad loans, debt securities and off-balance sheet items. Asset managers, insurers and banks had agreed earlier this year to set up a euro fund to bail out the weaker Italian lenders.

But other analysts suggest after the referendum result, investors might pull out. “[Investors] are now drawing back, they think the situation is too volatile both in Italy and in the European Union,” said Mark Grant, chief strategist at Hilltop Holdings, in a Squawk Box interview. “It’s going to be very difficult to do a raise of capital for Monte Paschi and the regional investment banks, and I think then what happens is Italy is going to be at loggerheads with the EU and the ECB,” Grant said.

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“.. a “small global turning of the tide in these uncertain, not to say hysterical and even stupid times..”

Austria Rejects Far-Right Candidate In Presidential Election (G.)

Austria has decisively rejected the possibility of the EU getting its first far-right head of state, instead electing a former leader of the Green party who said he would be an “open-minded, liberal-minded and above all a pro-European president”. Alexander Van der Bellen, who ran as an independent, increased his lead over the far-right Freedom party candidate, Norbert Hofer, by a considerable margin from the original vote in May, which was annulled by the constitutional court due to voting irregularities. Hofer conceded his defeat within less than half an hour of the first exit polls on Sunday, writing on Facebook: “I congratulate Alexander Van der Bellen for his success and ask all Austrians to pull together and work together.”

The 45-year-old, who said he was “endlessly sad” and “would have liked to look after Austria”, confirmed that he would like to run again for the presidency in six years’ time. The Freedom party secretary, Herbert Kickl, who has acted as Hofer’s campaign manager, said: “The bottom line is it didn’t quite work out. In this case the establishment – which pitched in once again to block, to stonewall and to prevent renewal – has won.” Speaking in front of international press at the end of the evening, a visibly emboldened Van der Bellen said the election had not just been a repeat, “but a new election after the world around us has changed” with the Brexit vote in June and Donald Trump’s win in November.

Referring to the colours of the Austrian flag, he described the result as “a red-white-and-red signal of hope and change to all the capitals in Europe”. Werner Kogler, a Green party politician, described the result as a “small global turning of the tide in these uncertain, not to say hysterical and even stupid times”. The endorsement of the retired economics professor was particularly emphatic in urban areas, with all of Vienna’s 23 districts showing up in Van der Bellen’s green than Hofer’s blue at the end of the night.

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The kind of headline where you really have to check the date of the article. But this is why Renzi lost, and this is why the EU will soon fall to bits.

Greece Must Reform Or Leave Eurozone – Schäuble (G.)

Greece must implement economic reforms if it is to keep its place in the eurozone, Germany’s finance minister has insisted, ruling out debt relief for the country ahead of a crucial euro group meeting on Monday. As the finance ministers of member states using the single currency prepared to discuss fiscal plans for the coming year, Wolfgang Schäuble in effect presented Greece with an ultimatum: either it must enforce unpopular structural reforms or exit the bloc. “Athens must finally implement the needed reforms,” he told the newspaper Bild am Sonntag in an interview published on Sunday. “If Greece wants to stay in the euro, there is no way around it – in fact completely regardless of the debt level.” Asked if German voters should be prepared for the inevitability of debt relief in the run-up to national elections next year, Schäuble quipped: “That would not help Greece.”

Schäuble, who also asserted the Greek budget was not burdened by debt servicing because interest rates were now so low, made the comments as speculation mounted over how best to put the thrice-bailed-out nation back on the road to economic recovery. On Friday the German finance ministry announced that short-term measures to lighten Greece’s debt load would be among the proposals up for discussion at the euro group meeting. Athens’s leftist-led government has long argued that the country’s staggering €330bn debt load is the single biggest impediment to sustainable growth. It is an argument that has won backing from the IMF. Time is of the essence. The economic crisis enveloping Greece is far from over despite more than €300bn of emergency loans since 2010 when, after its first brush with bankruptcy, it received its first EU-IMF sponsored bailout.

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Never let a good crisis go to waste.

Greece Sees Final Solution On Debt Crisis Amid Euro Uncertainty (R.)

Political uncertainty in Europe has created fresh momentum for a “comprehensive and permanent” solution to the Greek debt crisis before the year ends, a government spokesman said on Sunday. Eurozone finance ministers will meet in Brussels on Monday to discuss short-term debt relief for Greece, and Germany’s Wolfgang Schaeuble said it must implement reforms instead of hoping for further debt forgiveness. Greece remained optimistic for a final debt deal, however, just as Italians were voting on a constitutional referendum on Sunday and a victory for the opposition “No” camp may push the eurozone toward fresh crisis.

“Everyone realizes that Europe cannot stand a rekindling of the Greek crisis, when there are issues with Italy and amid a pre-election period in many European countries,” Dimitris Tzanakopoulos told Athens 9,84 radio. “The general uncertainty which prevails in Europe – which is both political and financial – creates … a momentum for a comprehensive and permanent solution for the Greek issue.” Bank of Greece Governor Yannis Stournaras said new measures were needed to lighten Athens’s debt burden. One option would be to extend the maturity of already granted long-term aid loans by some 20 years. “Greece needs debt sustainability and more realistic fiscal targets after the completion of the current adjustment program [in 2018],” Stournaras told German business daily Handelsblatt in an interview to be published on Monday.

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China and India, the world’s most populous countries, are both ruled by megalomaniacs. Thinking they are in full control.

Money-Laundering Networks Thrive Amid India’s Cash-Ban Chaos (BBG)

As Indians struggle with the chaos caused by last month’s sudden banning of their 500 and 1,000 rupee notes, money-laundering networks are spreading across the country, seizing on a new market in helping people turn their cash hoards into legal tender. While people have until year-end to deposit old notes in their bank accounts, the government has said it will scrutinize large cash deposits and money with undeclared origins — and will tax or penalize depositors. That’s created a scramble for ways to turn so-called black money, the local term for cash that has evaded taxation, into white.

Agents offering to launder money are using creative means, including flying banned cash by the planeload to northeastern states exempt from restrictions as well as connecting people to high-turnover businesses that can deem old cash as revenue, keep a portion of it, and return the rest, according to people involved in the networks. Premiums range from 10% to 50%, depending on the difficulty, they say. At least one property brokerage is offering to arrange the sale of apartments using banned money in an upscale suburb of Mumbai that’s popular with Bollywood movie stars.

While the government has been working to close loopholes – which Prime Minister Narendra Modi decried as people’s “illegal means to save their ill-gotten wealth” in a radio address last week – new ones are opening even faster. So far, the policy aimed at reducing the scale of the black economy and bringing more people into the tax net is, in the short term, leading to just the reverse: money-laundering, tax-avoidance, and new opportunities for existing organized crime, the evolution of the long-standing hawala money-transfer system, and the start of new illicit networks.

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“..you’ve gone from strangers at the gate, to barbarians and eventually robbers of the industry..”

China Regulator Slams Leveraged Stock Acquirers as ‘Robbers’ (BBG)

China’s top securities regulator resorted to unusually harsh language to denounce leveraged acquisitions of listed companies, as officials move to rein in financial risks associated with a surge in dealmaking. China Securities Regulatory Commission Chairman Liu Shiyu also questioned the legitimacy of the funding sources at acquirers that he didn’t identify, saying their behavior challenges the nation’s rules, as well as their own professional ethics. Such acquisitions show “retrogress and decay in humanity and commercial morals, and is by no means financial innovation,” Liu said. “By using improperly obtained money to conduct leveraged acquisitions, you’ve gone from strangers at the gate, to barbarians and eventually robbers of the industry, ” he said at a meeting of the Asset Management Association of China in Beijing on Saturday, a transcript of which was posted on the regulator’s website. “That’s not allowed.”

The comments came after China Evergrande Group, the country’s largest property developer, last month stepped up a buying spree of shares in rival China Vanke in the weeks after a warning from the Shenzhen stock exchange that it is closely monitoring Evergrande’s investments in listed companies. The bourse said it strengthened supervision after finding “abnormal trading behaviors” that affected share prices of Vanke and others. [..] Evergrande joined the fray in a tussle for control at Vanke, which has been trying to fend off advances from the Baoneng Group. Vanke labeled Baoneng “hostile” after it emerged last year as the developer’s largest shareholder, amassing a 24% stake by borrowing from brokers and fund managers who raise the money selling private high-yield instruments to wealthy clients.

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There once was a time when homes were places that offered shelter.

Vancouver Housing Tax Pushes Chinese Into $1 Million Seattle Homes (BBG)

Just a few days after Vancouver announced a tax on foreign property investors, Seattle real estate broker Lili Shang received a WeChat message from a wealthy Chinese businessman who wanted to sell a home in Canada and buy in her area. After a week of showings, he purchased a $1 million property in Bellevue, across Lake Washington from Seattle. He soon returned to buy two more, including a $2.2 million house in Clyde Hill paid for with a single cashier’s check. Shang says she’s been inundated with similar requests from China and Hong Kong after Vancouver’s provincial government enacted a 15% tax on foreign homebuyers in August to help cool soaring real estate values.

With Chinese investors – the largest pool of foreign capital – looking for a place to put their cash, the unintended consequence of the fee has been to push demand to cities such as Seattle and Toronto. “The tax was the trigger of this new wave of investment now coming to Seattle,” Shang said. “Why pay more for the same thing?” Vancouver, which has seen detached-home prices double in a decade, joined areas including Australia and Hong Kong in taking steps to slow housing demand after an unprecedented surge of foreign investment. Chinese buyers, in particular, are accelerating purchases overseas, spurred by a weakening yuan, rising prices at home and the perceived safety of real estate. They’re also venturing farther afield as costs soar in some of their favored markets.

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“..the physiological decision to stay in the workforce won’t work for much longer….”

Pensions Time Bomb Spells Disaster For US Economy (RVTV)

The $1.3 trillion pensions deficit just takes into account state and municipal obligations and with promised returns of 8% and funds compounding at 3% for decades it will take nothing short of an economic miracle to recover. “The average state pension in the last fiscal year returned something south of 1%. You cannot fill that gap with a bulldozer, impossible,” DiMartino Booth said. “Anyone who knows their compounding tables knows you don’t make that up. You don’t get that back unless you get some miracle.” The last time we saw significant market weakness, the baby boomers pretty much accepted that they would be retiring at 70 instead of 65, she added. “Well, guess what? They’re turning 71. And the physiological decision to stay in the workforce won’t work for much longer. And that means that these pensions are going to come under tremendous amounts of pressure.”

“And the idea that we can escape what’s to come, given demographically what we’re staring at is naive at best. And it’s reckless at worst,” DiMartino Booth said. “And when you throw private equity and all of the dry powder that they have – that they’re sitting on – still waiting to deploy on pensions’ behalf, at really egregious valuations, yeah, it’s hard to sleep at night.” “This is where the smile comes off my face. We are an angry country. We’re an angry world. The wealth effect is dead. The inequality divide is unlike anything we’ve seen since the years that preceded the Great Depression,” she told Real Vision TV. “Where’s the money going to come from? And the answer is, for now, they cut services. I’ve just written about the Winter of Discontent and the rubbish piled up in central London streets in 1979, as Thatcher was coming in. I worry about the ambulance not getting there in time. I worry about firefighters being cut to the bone and policemen.”

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Russia is not the no. 1 threat. These people are.

US Reshaping Budget To Account For Russian Military Threat (R.)

Russia’s increasing military activities around the world have unsettled top U.S. military officials, who say they are reshaping their budget plans to better address what they now consider to be the most pressing threat to U.S. security. “Russia is the No. 1 threat to the United States. We have a number of threats that we’re dealing with, but Russia could be, because of the nuclear aspect, an existential threat to the United States,” Air Force Secretary Deborah James told Reuters in an interview at the annual Reagan National Defense Forum. James, Chief of Naval Operations Admiral John Richardson and Pentagon chief arms buyer Frank Kendall, all voiced growing concern about Russia’s increasingly aggressive behavior in interviews late on Saturday.

Their comments come as the Pentagon finalizes a classified security assessment for President-elect Donald Trump, who has promised to both pump up U.S. defense spending and build closer ties to Russian President Vladimir Putin. European diplomats fear Moscow could use the time before Trump’s inauguration to launch more offensives in Ukraine and Syria, betting that President Barack Obama will be loathe to response forcefully so soon before he hands off power on Jan. 20. Kendall said U.S. policy had been centered on threats in the Asia-Pacific region and Middle East, but was now focused more on Russia. “Their behavior has caused us … to rethink the balance of capabilities that we’re going to need,” he said.

None of the officials gave details about how the concerns would affect the fiscal 2018 budget request, but defense officials have pointed to the need to focus on areas such as cyber security, space, nuclear capabilities and missile defense, where Russia has developed new capabilities in recent years.

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Washington better back down. Trump can’t afford this fight either.

Army Denies Dakota Pipeline Permit (R.)

The U.S. Army Corps of Engineers said on Sunday it turned down a permit for a controversial pipeline project running through North Dakota, in a victory for Native Americans and climate activists who have protested against the project for several months. A celebration erupted at the main protest camp in Cannon Ball, North Dakota, where the Standing Rock Sioux tribe and others have been protesting the 1,172-mile Dakota Access Pipeline for months. It may prove to be a short-lived victory, however, because Republican President-elect Donald Trump has stated that he supports the project. Trump takes over from Democratic President Barack Obama on Jan. 20 and policy experts believe he could reverse the decision if he wanted to.

The line, owned by Texas-based Energy Transfer Partners, had been complete except for a segment planned to run under Lake Oahe, a reservoir formed by a dam on the Missouri River. That stretch required an easement from federal authorities. The Obama administration delayed a decision on the permit twice in an effort to consult further with the tribe. “The Army will not grant an easement to cross Lake Oahe at the proposed location based on the current record,” a statement from the U.S. Army said. Jo-Ellen Darcy, the Army’s Assistant Secretary for Civil Works, said in a statement the decision was based on a need to explore alternate routes for the pipeline, although it remains unclear what those alternatives will be. Protesters have said the $3.8 billion project could contaminate the water supply and damage sacred tribal lands.

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