Musk Archives - Page 3 of 4 - The Automatic Earth

Public officials and media reported that a man in Texas became the first American to die from the Omicron variant. I checked with the Harris County Public Health Department. Turns out that's not true.

Here's audio of my phone call. pic.twitter.com/fIDZNPzYuj

— Dan Cohen (@dancohen3000) December 22, 2021

“..if you believe in a God,” the rise of the omicron variant “looks an awful lot like a Christmas present.”

• Omicron Could Be ‘A Christmas Present’ – Malone (WND)

The new omicron variant that is causing renewed panic among government officials and media could turn out to be “a Christmas present,” says the inventor of the mRNA technology behind the Pfizer and Moderna COVID-19 vaccines. Dr. Robert W. Malone, in a video interview Monday with WND, explained that while the original SARS-CoV-2 virus settled in the lungs, a new University of Hong Kong study that is still under peer review is among studies indicating omicron is settling in the upper respiratory tract. That makes it more transmissible but less virulent. Consequently, the new variant, which was first detected in South Africa on Nov. 25, could act similarly to a live attenuated virus vaccine, producing mild symptoms and natural immunity to COVID-19, Malone said.

He urged caution, noting a pre-print U.K. study by Imperial College of London reporting it is finding no difference in omicron hospitalizations compared to delta. However, the U.K. researchers acknowledged in their initial report that hospitalization data “remains very limited at this time.” In fact, South African officials reported last week that only 1.7% of identified COVID-19 cases were admitted to hospitals in the second week of infections in the fourth wave. That’s compared with 19% in the same week of the third delta-driven wave, South African Health Minister Joe Phaahla said at a press conference. [..] Malone also discussed in the WND interview a new study from Ontario, Canada, suggesting vaccination could predispose someone to a higher risk of infection by omicron.

“If so, that would be the clear indication of the vaccine-enhanced infection and disease risk that not just I had been concerned about, but that the FDA was concerned about,” he said. His main caution with the Ontario data is that there is no indication of how many cases were omicron and how many were delta.[..] Malone also commented on the new release of emails showing that outgoing National Institutes of Health Director Francis Collins asked White House coronavirus adviser Dr. Anthony Fauci to carry out a “quick and devastating published takedown” of the Great Barrington Declaration in the fall of 2020. [..] “We have now clear, clear evidence of collusion by senior government officials to suppress scientific discussion and debate about one of the most crucial issues that we’ve addressed over the last two years, which is whether or not lockdowns make sense,” Malone said.

“And the data are overwhelming. They don’t.” And, he continued, “the worst part is the rest of the world looks to the U.S. for leadership.” “There’s a good chance that Australia wouldn’t be in this hellhole that they are now in if Francis Collins hadn’t substituted his opinions for actually looking at the data,” Malone said. On Friday, Malone told Fox News host Laura Ingraham that “if you believe in a God,” the rise of the omicron variant “looks an awful lot like a Christmas present.” He said that to “the experienced vaccinologist,” it looks “like a live attenuated virus vaccine that you might design for purpose.” “It’s going to elicit a strong mucosal immune response. This is about as good as we could possibly want right now, in terms of outcomes,” he said.

Yet, Ingraham noted, the media and political establishment are “freaking out,” calling for shutting things down again. “I think they’re disappointed with the good news,” Malone said.

Admitting your product is worthless, in an attempt to make even more money. And people will fall for it.

• BioNTech CEO Says ‘Even Triple-Vaccinated’ Transmit COVID (SAC)

While President Joe Biden and his coronavirus officials are bullying Americans into getting vaccinated or they will face a “deadly winter” for themselves and their families, “one of the scientists behind Pfizer-BioNTech’s COVID-19 show said Monday that he believes vaccines alone will not be enough to fight the Omicron variant.” BioNTech CEO Ugur Sahin told French newspaper Le Monde “even triple-vaccinated people can transmit the disease, and they will have to be tested, especially around vulnerable people.” “With the Omicron variant becoming dominant, protective measures will remain essential, especially this winter” he added, who says they are working on yet another version of the vaccine specifically tailored for the Omicron variant that could possibly be available by March.

So according to an actual scientist in an actual science-based company, even being “triple-vaccinated” will not stop people from the winter of death that Biden claims will happen to only those who are not vaccinated. Not only will vaccines and boosters not guarantee you can hug grandma, but there will be yet another vaccine created to push down our throats in the coming months. Sahin says unfortunately those who received the original Pfizer-BioNTech vaccine will lose its efficacy over time. “It’s obvious we are far from the 95 percent effectiveness that we had against the initial virus. But after the third injection our vaccine seems to provide 70 percent or 75 percent protection against any form of the disease, which is still a good result for a vaccine in general — and I think we will be well beyond that for severe forms,” said Sahin.

When the Wall Street Journal Editorial board turns on Fauci, maybe there’s still hope.

• How Fauci and Collins Shut Down Covid Debate (WSJ Ed.)

In public, Anthony Fauci and Francis Collins urge Americans to “follow the science.” In private, the two sainted public-health officials schemed to quash dissenting views from top scientists. That’s the troubling but fair conclusion from emails obtained recently via the Freedom of Information Act by the American Institute for Economic Research. The tale unfolded in October 2020 after the launch of the Great Barrington Declaration, a statement by Harvard’s Martin Kulldorff, Oxford’s Sunetra Gupta and Stanford’s Jay Bhattacharya against blanket pandemic lockdowns. They favored a policy of what they called “focused protection” of high-risk populations such as the elderly or those with medical conditions. Thousands of scientists signed the declaration—if they were able to learn about it.

That didn’t please the lockdown consensus enforced by public-health officials and the press. Dr. Collins, the director of the National Institutes of Health until Sunday, sent an email on Oct. 8, 2020, to Dr. Fauci, the director of the National Institute of Allergy and Infectious Diseases. “This proposal from the three fringe epidemiologists . . . seems to be getting a lot of attention – and even a co-signature from Nobel Prize winner Mike Leavitt at Stanford. There needs to be a quick and devastating published take down of its premises,” Dr. Collins wrote. “Is it underway?” These researchers weren’t fringe and neither was their opposition to quarantining society. But in the panic over the virus, these two voices of science used their authority to stigmatize dissenters and crush debate.

A week after his email, Dr. Collins spoke to the Washington Post about the Great Barrington Declaration. “This is a fringe component of epidemiology,” he said. “This is not mainstream science. It’s dangerous.” His message spread and the alternative strategy was dismissed in most precincts. Dr. Fauci replied to Dr. Collins that the takedown was underway. An article in Wired, a tech-news site, denied there was any scientific divide and argued lockdowns were a straw man—they weren’t coming back. If only it were true. The next month cases rose and restrictions returned. Dr. Fauci also emailed an article from the Nation, a left-wing magazine, and his staff sent him several more. The emails suggest a feedback loop: The media cited Dr. Fauci as an unquestionable authority, and Dr. Fauci got his talking points from the media. Facebook censored mentions of the Great Barrington Declaration. This is how groupthink works.

On CBS last month, Dr. Fauci said Republicans who criticize him are “really criticizing science, because I represent science. That’s dangerous.” He isn’t “science.” And it’s also dangerous for scientific officials to mobilize to quash dissent, without which it’s easy to make tragic mistakes. A scientific debate over pandemic policy was and still is in the public interest, especially during a once-in-a-century plague. Focused protection of nursing homes and other high-risk populations remains the policy road not taken during the pandemic. Perhaps this strategy wouldn’t have prevailed if a debate had been allowed. But it isn’t enough to repeat, as Dr. Collins did on Fox News Sunday, that advocates are “fringe epidemiologists who really did not have the credentials,” and that “hundreds of thousands of people would have died if we had followed that strategy.”

“These are very disturbed people who have allowed a taste of power and influence to fuel an underlying narcissism.”

• Fauci Says Unvaxxed Relatives Not Worthy of Family Christmas Gatherings (CTH)

Dr. Anthony Fauci is a thin-skinned, unstable ideologue with visions of grandiosity. He has wreaked havoc on our nation and permeated a major crisis on the global stage with his poor advice on COVID-19. He personifies a mentally and emotionally unstable person within his worldview. Fauci is representative of a group of psychologically unstable people who need a career operating in government systems and institutions, because they could never be successful in the private sector. They can only succeed in academia and institutions without merit-based structures.

These are very disturbed people who have allowed a taste of power and influence to fuel an underlying narcissism. Their disorder exhibits as vengeful bitterness, the result of adolescent isolation and no emotional balance. History will not look well upon Anthony Fauci any more than history reflects well upon Josef Mengele. In this short Q&A snippet, Anthony Fauci reveals his bitter worldview by saying unvaccinated people should be told to stay away from family events this Christmas. Notice the reference point of the response is that people should appreciate being in his presence.

“..they control 61 per cent of the biomedical research on earth, so they control pretty much what gets funded.”

• An Interview With Fauci’s Nemesis (Beck)

SB: Have you received any legal challenges from Anthony Fauci or Bill Gates? RFK:There is nothing in that book that is untruthful. Secondly, I would welcome a lawsuit from Bill Gates and Tony Fauci, and they know that that would be a giant strategic mistake. Even if I did put something in that book that was defamatory, I don’t think they would challenge it. They’ve got so much to lose from the truth. Their only viable strategy is silence.

SB: What kind of reaction have you had from MSM? RFK: There’s no reviews in the papers [despite the book’s No 1 best-seller status]. I am now being targeted with a barrage of ad hominem articles about me, but they don’t even mention the book, which is weird. They do not want to talk about this book because it’s full of truth. The truth is their deadliest enemy.

SB: Have you ever met either Fauci or Gates? RFK:: I’ve met Tony Fauci. Our paths have crossed for many years. I’ve been working on vaccine issues since 2005 so I’ve seen him in action on many occasions. In 2016, President Trump asked me to run a vaccine safety commission. To do that I had a series of meetings with the regulatory leadership including Fauci and Gates. One of my challenges to them was to say: ‘You have never done a single double-blind placebo-controlled trial for any of the 72 recommended vaccines being given to children.’ Publicly, Fauci was saying I had not been telling the truth about this. I said to him: ‘Show me one trial for any of those 72 jabs.’ He made a show of looking through the files he’d brought with him. He said: ‘We don’t have them here; we’ll send them to you.’ He never did send them to me and a year later I sued them. We filed a suit asking them to show us any of those studies they had and after a year of litigation they came back and said we don’t have any. Ironically, Fauci is now saying that he can’t use ivermectin or hydroxychloroquine to treat Covid without back-up from a double-blind placebo-controlled trials.

SB: The impression I get of Fauci is that he knows what to say in public but he seems like he has a dark side to him. The only reason for providing toxic drugs to people, like remdesivir, that has been so harmful to people with Covid, is because you know many who receive it will die. Does he know that? RFK: Of course he does. He had remdesivir in a study in Africa to see if it worked against Ebola. In 2019, the Data and Safety Monitoring Review Board (DSMB) monitored his work. Two months later, the board was saying it’s not safe, it’s killing people. It’s produced by the pharmaceutical company Gilead which Bill Gates has a huge stake in. Coronavirus does not kill 50 per cent of people who get it whereas trials show that over 50 per cent of people treated with remdesivir died.

SB: In your book you talk about two types of scientists, those who allow Fauci to dictate their careers and those who don’t want to be compromised, but he seems to be very effective at crushing dissent. RFK: Between him, Gates and Jeremy Farrar, director of the Wellcome Trust [part of the Trust’s £29.1billion annual budget comes from Gates], they control 61 per cent of the biomedical research on earth, so they control pretty much what gets funded. Also, that funding power gives them the power to kill studies they do not want and to ruin scientists who are trying to do those studies and to bankrupt universities. I show how that works in the book. If you had a young scientist at let’s say UCLA Medical School, [University of California, Los Angeles] who says why don’t we study whether the vaccines are causing injury by doing a cluster analysis of medical records?

That’s an easy study to do. His dean will get a call from one of Tony Fauci’s flunkeys at the NIH [National Institutes of Health run by Fauci] saying you’d better stop that guy from doing the study, Tony doesn’t want it done. UCLA, like all the medical schools in this country, is getting hundreds of millions of dollars from Fauci and the NIH and are completely dependent on the royalties from pharmaceutical products that Fauci develops in his lab, farms out to the universities for phase 1 and phase 2 trials, then brings in a pharmaceutical company to produce the drug who then shares the patent with the university. Everybody is on the hook; everybody is making money and all of them have a huge incentive not to talk.

Important to remember: “Every single attempt at vaccination against a coronavirus in the past in both man and beast has failed to produce durable immunity.”

• Here’s A Reality Check (Denninger)

Pfizer has disclosed in their own data that for young people the shots are as dangerous, as measured in hospitalization, for ***** as they are for caused myocarditis. Since infection is never certain but inoculation, once you take it, is, there was never an argument for authorizing these jabs in healthy young people simply on the math. We did it anyway and we’re still advocating it. That is just one condition but let’s be clear: If you jab your kid you’re putting them at equal or greater risk of being hospitalized from one side effect of the ******* alone as from *****-19 itself. If you do that as a parent you’re a monster. If you do it as a young adult on your own absent some individualized risk you’re stupid.

Anyone who believes that an agent injected into the muscle of the arm that can and does sometimes cause inflammation of the heart will not also cause inflammation of other tissues and, through doing so, also cause damage to other tissues has rocks in their head. The scope of that additional damage is completely unknown because we’re not performing any surveillance nor did we originally. We have never, for example, taken a group of 100 people, pulled full blood work including markers for inflammation, cardiac damage and others, then vaccinated them and repeated said tests on a 2, 4, 8 and 16 week interval to determine if we got negative metabolic changes and if we did, whether they were transient or durable. Nobody knows because we never did the work.

But it is entirely reasonable to expect that additional risk of stroke, heart attack, pulmonary embolism and more, all of which are life-altering, produce permanent disability and can be fatal, would be made materially more-likely by an agent that causes myocarditis. Indeed that would be a reasonable medical presumption; inflammation in the body is a known contributing factor to strokes and VTE which encompasses pulmonary embolisms. Given the billions that these companies have made you’d think we would have required such in-detail tracing, collection of information and publication of the results. We did not then and still haven’t. Omicron has now thrown mud in everyone’s eye by doing exactly what every coronavirus has done through time — mutationally evaded the neutralization potential of vaccination.

Every single attempt at vaccination against a coronavirus in the past in both man and beast has failed to produce durable immunity. Several attempts have resulted in wildly-enhanced disease. We’re seeing the latter now with attack rates in vaccinated people exceeding that for unvaccinated with Omicron. The only good news is that it may be true that Omicron is less-virulent; there is some early evidence that it is much less replication-competent in the lungs. That’s a good thing because upper respiratory infection is not serious; it is the lung infection that gets you. In other words it may be that Omicron is a nasty cold. That it is more-able to infect vaccinated people than not is troubling but if its less-virulent it may not matter — indeed it may be a blessing. We don’t yet know and won’t for a few months, and that assumes we get honest data — which we may not.

The moment such people say this, you better prepare for number six. Israel just officially announced number 4. Your country will follow soon.

• Prepare For Fourth Covid Jab, Tony Blair Institute Says (RT)

The research institute founded by former UK prime minister Tony Blair has called on the government to create a command-and-control team that could help it remain “ahead of the curve” and quickly roll out more vaccines. In a paper published on Tuesday, the Tony Blair Institute said the British government should seek to develop infrastructure that would allow it to mobilize new vaccination campaigns within 48 hours. With the prospect of yet more Covid variants emerging, it highlighted that “a fourth dose of the vaccine may soon be needed.” The institute contended that the ability to respond to future Covid strain outbreaks would depend on whether administrations could implement “a better approach to ‘command and control’ through a strong and coherent public-health emergency operations center.”

The non-profit organization said the emergence of Omicron highlighted the fact that governments are often forced to react, rather than working to “stay ahead of the curve.” “To achieve this, we need to take decisions fast, take them in a coordinated manner, and execute effectively and at speed. Be prepared at all times,” the paper reads. Noting examples from other nations, the institute said the UK’s Joint Committee on Vaccination and Immunisation should be doing more, including “rapidly” approving the use of Covid-19 vaccines in children aged five to 11 in an effort to reduce transmission.

As member countries ponder a 3 month gap between jabs/boosters, the EU goes for 9?!

Interesting that the “primary vaccination schedule” is still just 2 jabs.

• EU Sets Binding 9 Month Validity Of Covid-19 Travel Pass (R.)

The European Commission on Tuesday adopted rules that will make the European Union Covid-19 certificate valid for travel nine months after the completion of the primary vaccination schedule. The proposal comes as several EU states introduce additional requirements on travellers in a bid to reduce the spread of the Omicron coronavirus variant. EU Justice Commissioner Didier Reynders told Reuters the EU Commission was against additional requirements, and was assessing the measures. The new rules will be binding on the 27 EU states from Feb. 1. The rule can be blocked by a qualified majority of EU governments or a simple majority of European Parliament members, but officials have said there is sufficient support for it. The rule replaces a non-binding recommendation the EU Commission put forward in November.

Once the rule is effective, EU states will be obliged to let fully vaccinated travellers with a valid pass access their territory. However, as an exception justified by a deteriorating situation, they could still impose further requirements, such as negative tests or quarantines, as long as they are proportionate. Seven EU states are currently requiring fully vaccinated travellers from other EU countries to also show a negative Covid-19 test upon arrival, measures some see as damaging the credibility of the EU pass. The states are Italy, Greece, Ireland, Portugal, Latvia, Cyprus and Austria. “We prefer to use for the free movement in Europe only the certificate without additional measures,” Reynders said. He noted that the additional requirements could be justified by concerns caused by the spread of the Omicron variant, but governments had to prove they were proportionate and necessary.

[..] A primary vaccination schedule for Covid-19 is currently composed in the EU of two shots of vaccines produced by Pfizer-BioNTech , AstraZeneca and Moderna, or a single jab of the Johnson & Johnson vaccine.

“The vaccine refusenik hunters will receive a wage of 2774 euros, which will be paid 14 times a year, making an annual income of 38,863 euros.”

• Austria Hiring People to “Hunt Down Vaccine Refusers” (SN)

The Austrian government is hiring people to “hunt down vaccine refusers,” according to a report published by Blick. Yes, really. The burden for enforcing the fines unjabbed Austrians will have to pay as part of their punishment will fall to their employers, necessitating a new army of ‘inspectors’ to ensure that process is running smoothly. The city of Linz, which is home to 200,000 inhabitants, has a relatively low vaccination rate of 63 per cent. In response, “Linz now wants to hire people who are supposed to hunt down vaccine refusers,” reports Swiss news outlet Blick. The role of the inspectors will be to check on “whether those who do not get vaccinated really pay for it.” The vaccine refusenik hunters will receive a wage of 2774 euros, which will be paid 14 times a year, making an annual income of 38,863 euros.

Nice work if you can get it. “The job includes, among other things, the creation of penal orders as well as the processing of appeals,” according to the report, adding that workers need to be “resilient” and willing to work a lot of overtime. The jobs are only open to Austrian citizens, all of whom will either have to be vaccinated against or fully recovered from COVID. As we previously highlighted, the unvaccinated in Austria could find themselves imprisoned for a year under a new administrative law that would force them to pay for their own internment. Austrians who don’t get vaccinated by February face fines of up to €7,200 ($8,000) for non-compliance, and those who refuse to pay would also face a 12 month jail sentence.

It’s clear who the idiot is here, but then again he’s just another propaganda victim, like 99.9% of people.

• Ryanair CEO Calls For Unvaccinated “Idiots” To Be Ostracised From Society (SN)

Michael O’Leary, the CEO of Ryanair has declared that anyone who remains unvaccinated should be completely cut off from society, including not being allowed to travel, go to the supermarket to get food, or the pharmacy to get medicine. “If you’re not vaccinated, you shouldn’t be allowed in the hospital, you shouldn’t be allowed to fly, you shouldn’t be allowed on the London Underground, and you shouldn’t be allowed in the local supermarket or your pharmacy either,” the airline executive said, as reported by The Telegraph. “You can sit at home and you know, get your deliveries of medicines and food. But you should not, you know, go to work or go on public transport unless you have a vaccine certificate,” O’Leary clarified.

O’Leary admitted that making vaccines compulsory is “an infringement of your civil liberties,” but added that the way around it is “you simply make life so difficult. Or [make it that] there are lots of things that you can’t do unless you get vaccinated.” Calling the unvaccinated “idiots,” the Ryanir boss further stated “I don’t think that governments should permit those people who are not vaccinated to go and infect everybody else.” O’Leary sardonically stated “We recognise the rights of everybody to decide not to get vaccinated if you so want. If you personally object to vaccination, because it’s some huge government/big pharma conspiracy; apart from the fact that you would be plainly an idiot, we respect your right to be an idiot.”

Ryanair was previously punished by the advertising standards agency in the UK after running a campaign promoting the sale of summer flights with a “Jab & Go!” gimmick despite having previously stated that it wouldn’t require passengers to take a COVID vaccine before they fly. As we previously reported, other airlines have indicated they will not allow passengers who haven’t had the vaccine to fly, including Singapore Airlines, which became the first carrier to officially launch a COVID passport.

I’ll admit, I’m getting confused.

• Judge Blocks Biden’s Vaccine Mandate for Federal Contractors in 10 States (ET)

A federal judge in Missouri has issued a temporary hold on the Biden administration’s COVID-19 vaccine mandate for federal contractors in 10 U.S. states while litigation plays out. “We just beat the Biden Administration in court again,” Missouri Attorney General Eric Schmitt announced on Twitter late Monday. “This afternoon, we obtained a preliminary injunction against the vaccine mandate on federal contractors, halting enforcement of that mandate in Missouri and the other states in our coalition.” The preliminary injunction, issued by U.S. Magistrate Judge David Noce, applies to Alaska, Arkansas, Iowa, Missouri, Montana, Nebraska, New Hampshire, North Dakota, South Dakota, and Wyoming.

Schmitt and Nebraska Attorney General Doug Peterson, both Republicans, on Oct. 29 co-led the 10 states in suing the Biden administration over the mandate, calling it “unconstitutional, unlawful, and unwise.” “It will not harm the federal government to maintain the status quo while the courts decide the issues of the President’s authority and the implications for federalism. The Court concludes that, on balance, consideration of the harms and the public interest weigh in favor of a preliminary injunction,” reads the Monday preliminary injunction order from U.S. Magistrate Judge David Noce. A nationwide preliminary injunction is already in place blocking the Biden administration’s vaccine mandate for federal contractors, after a federal court in Georgia on Dec. 7 granted the injunction in a separate seven-state lawsuit led by Georgia.

This should be checked for every country.

• Covid Modelling Shows The Most Worrying Scenario, Not The Most Likely (G.)

Much of the pandemic modelling to make news headlines since Covid-19 hit has depicted concerning scenarios involving high case numbers and hospitalisations. On Thursday, modelling from the University of NSW and cited by NSW health minister Brad Hazzard found Covid-19 cases in the state could reach 25,000 a day by the end of January. The latest modelling to raise alarm bells came from the Doherty Institute and was leaked to the media on Tuesday after being sent to politicians ahead of a meeting of national cabinet on Wednesday. It said Australia could see 200,000 new Covid cases a day by late January or early February. Early into the pandemic in 2020, other models predicted “hundreds of thousands” of Australian deaths, while health workers in NSW were told to prepare for 8,000 deaths in the first-wave.

But these are worst-case scenario models and are just one scenario out of dozens of different scenarios that are calculated by epidemiologists and biostatisticians. What is often lost in the reporting of these worst-case models is that they rarely ever eventuate, but are calculated to allow governments to see what might happen if they did nothing at all to control an outbreak, and to plan accordingly. The leaked Doherty Institute modelling projecting 200,000 cases came with an important caveat; this would only eventuate if nothing was done, including if people did not change their behaviour at all of their own accords. It also assumed no change to the pace of booster roll-outs, and that only very basic restrictions such as requiring masks in hospitals are maintained.

[..] Ahead of national cabinet meeting on Wednesday the chair of the Australian Health Protection Principal Committee, Prof. Paul Kelly, said of the 200,000 figure “presents one of the worst case of all potential scenarios including assumptions that the Omicron variant is as severe as the Delta variant, an absence of hospital surge capacity, a highly limited booster program, no change to baseline public health and social measures and an absence of spontaneous behaviour change in the face of rising case numbers”. “None of these five assumptions represent the likely state of events, let alone all of them together, therefore presenting that scenario as the likely scenario that will occur is highly misleading.”

“One can only assume that the provincial health authorities’ relationship-splitting social engineering interventions will increase loneliness and isolation and associated risks for depression, anxiety, PTSD, self-harm, suicide, and drug toxicity for all. This is psychology 101.”

• A Letter from a Concerned Psychologist (Nicassio)

Attachment and the need to belong refer to the fundamental human need to maintain close social bonds and stay connected in psychologically and physically safe relationships from cradle to grave. One of the major contributions of psychology research has been to demonstrate that maintaining healthy and secure attachment and belonging is more than a psychological need: Attachment and belonging are primary and critical determinants of mental and physical health. Research in social psychology and neuroscience demonstrates that human beings’ neurobiological response to social exclusion mirrors their response to physical pain and suggests that social exclusion is one of the most painful and threatening events a person can experience.

While it’s not surprising that social exclusion and disturbances in attachment lead to negative emotions and thoughts, what’s less intuitive is that a large body of research has demonstrated that social exclusion is toxic to humans, leading to enduring changes in the brain and biological systems that regulate stress, weakening of the immune system, mental and physical illness, and earlier death. To date the narrative around social restrictions has been, “Well yes, social isolation is hard but restrictions are for the greater good!” But let’s be clear: The newest restrictions are not your run-of-the-mill isolation requirements. These restrictions require British Columbians to selectively exclude and marginalize their unvaccinated friends and loved ones during the most significant season for social gatherings and celebrations.

This is painful for everyone involved, but especially those who will be excluded and spending the holidays alone. It is also qualitatively different from previous social isolation requirements where we were all in it together. Sadly, social exclusion is actually an extremely harmful form of bullying. It’s clear to anyone with an understanding of psychology that these restrictions will cause relational fracturing and personal suffering that will last well beyond the holiday season. Not only is there strong scientific evidence that social exclusion leads to increased morbidity and mortality, but research consistently demonstrates that social exclusion, loneliness, and isolation are predictors of self-harm and suicide. The latest data have also shown a huge escalation in drug toxicity deaths since social restrictions began and this is the tip of the iceberg. One can only assume that the provincial health authorities’ relationship-splitting social engineering interventions will increase loneliness and isolation and associated risks for depression, anxiety, PTSD, self-harm, suicide, and drug toxicity for all. This is psychology 101.

As we prepare to get rid of Fauci, let’s do the same with Victoria Nuland. Make the world a better place.

• Americans Warned About Risk Of Russian Invasion Of Ukraine (RT)

American citizens considering traveling to Ukraine have been advised by Washington to reconsider the trip, citing persistent claims that Russia could be planning an all-out offensive against its Eastern European neighbor. On Monday, the US State Department updated its recommendations for the country, warning that “citizens should be aware of reports that Russia is planning for significant military action against Ukraine.” Americans were informed that this “would severely impact the US Embassy’s ability to provide consular services,” including assisting people in departing from the region in an emergency. The travel notice also continued to advise against travel due to the Covid-19 risk in Ukraine, a recommendation in place for several months.

Guidance urging US citizens to rethink their journey to the former Soviet republic because of its high rates of coronavirus infection had been issued at the end of September. The advisory came after Kiev’s intelligence services and Western officials sounded the alarm in recent weeks, insisting that Moscow could soon launch an all-out offensive against its neighbor. However, the Kremlin has repeatedly rejected the accusations, instead arguing that the prospect of Ukraine becoming a member of NATO destabilizes the situation. Foreign Ministry spokeswoman Maria Zakharova warned at the beginning of December that the further expansion of the organization toward Russia is a red line, and that Ukraine’s hopes to be admitted were unacceptable. She accused the US of pulling Kiev into the orbit of the military bloc and turning it into a “bridgehead” of confrontation with Russia, which she warned could cause conflict on the European continent.

“Goldman Sachs Bank USA had $387 billion in assets versus $48 trillion (yes, trillion) in notional (face amount) derivatives.”

• The Fed Gets Its Ducks in a Row for the Next Wall Street Bailout (Martens)

Last Friday, with the public’s attention diverted to the surge in Omicron variant cases of COVID in the U.S. and holiday travelers’ attention focused on the safety of air travel and family gatherings, the Federal Reserve Bank of New York quietly announced, in a one sentence statement, that it was adding the following three federally-insured banks to its list of counterparties for its newly-minted $500 billion Standing Repo Facility: Citibank, Goldman Sachs Bank USA, and the New York Branch of Mizuho Bank. If you’re stunned that Goldman Sachs is allowed to own a federally-insured bank under existing U.S. law, see our previous report: Goldman Sachs’ Rich Man’s Bank Backstopped by You and Me. If you’re stunned that a New York branch of Mizuho Bank, part of the Japanese conglomerate Mizuho Financial Group, is able to have federal deposit insurance backstopped by the U.S. taxpayer, welcome to the world of borderless global banking for the one percent.

These three banks have a number of things in common: (1) each financial institution already has a broker-dealer affiliate that is already one of the Fed’s 24 primary dealers that participates in the Fed’s repo operations; (2) each of the three banks’ primary dealer affiliates took large, secret loans from the Fed’s repo facility when credit collapsed on Wall Street on September 17, 2019; (3) all three institutions have trillions of dollars in exposure to derivatives according to data from the Office of the Comptroller of the Currency (OCC). If all three banks already have broker-dealer affiliates participating in the Fed’s repo loan facility, why would another affiliate be added? The first thought that comes to mind is the fact that the Fed puts a daily cap on the dollar amount that each counterparty can borrow per day. By having two affiliates as counterparties, the amount that can be borrowed is doubled.

Why would these three banks need to have a sugar daddy at the Fed to loan them money in a financial crisis? Because all three banks have huge exposure to derivatives. According to the latest report from the OCC, as of September 30, 2021, Goldman Sachs Bank USA had $387 billion in assets versus $48 trillion (yes, trillion) in notional (face amount) derivatives. Citibank had $1.7 trillion in assets versus $44 trillion in notional derivatives. Mizuho’s bank holding company had $48.8 billion in assets versus $6 trillion in derivatives.

Musk is … different, and that is refreshing.

• “If You Could Die Of Irony, She Would Be Dead”: Musk Slams Liz Warren (ZH)

Elon Musk just sat down with the guys from the Babylon Bee for a 54-minute interview, where the Tesla and SpaceX founder savaged Sen. Liz Warren, and described woke culture as a “mind virus.” “You were pretty mean to Senator Warren there on Twitter recently,” said Babylon Bee EIC Kyle Mann. “Ya slammed her man.””Please don’t call the manager on me, Senator Karen,” he continued – citing Musk’s December 14th response to Warren slamming him for not paying ‘enough’ taxes. To which Musk replied: “She struck first, obviously. She called me a freeloader and a grifter who doesn’t pay taxes, basically. And – I’m literally paying the most tax that any individual in history has ever paid, this year, ever. And she doesn’t pay tax… basically at all. And her salary is paid for by the taxpayer, like me.”

“Could you even use the term irony, would that work?” asked one of the Bee guys. “If you could die of irony, she would be dead.” Musk also opined on woke culture – calling it a “mind virus,” and “arguably one of the biggest threats to modern civilization.” “Wokeness wants to make comedy illegal,” Musk continued, adding “Do we want a humorless society that is simply rife with condemnation, and hate? At its heart, wokeness is divisive, exclusionary and hateful. It basically gives mean people a shield to be cruel, armored in false virtue.” When asked why Musk wasn’t appearing on, say, CNN, he replied: “I’m not perverted enough?” perhaps referencing their recent pedo outbreak.

Bee CEO Seth Dillon asked Musk if he gets sick of people badgering him about his wealth, to which he said that until he sold stock, he maintained relatively little cash balances – and that he happens to own 20% of a company that people decided was worth a trillion dollars. He also defended ‘not paying taxes,’ explaining that in 2017 he overpaid, which netted out in 2018, and that since the majority of his wealth is in stock anyway that he wasn’t incurring taxable events. “What am I supposed to do, send shares to the government, somehow?” said Musk.

Support the Automatic Earth in virustime with Paypal, Bitcoin and Patreon.

Debt Rattle December 18 2021

Dec 182021

December 18, 2021 Posted by Raúl Ilargi Meijer at 9:39 am Finance Tagged with: Assange, kids, mandate, misinformation, Musk, Omicron, Pfizer, Putin, South Africa, supply chain, VAERS 73 Responses »

Vincent van Gogh Road menders at Saint-Remy 1889

• South Africa Hospitalization Rate Falls 91% in Omicron Wave (BBG)

• Pfizer Tests Extra Covid Shot For Kids Under 5 In Setback (AP)

• VAERS Deaths Are Underreported By A Factor Of 20 (RG)

• Guidance On Covid Vaccines Moves Closer To ‘Misinformation’ Of Skeptics (JTN)

• Where Do You Stand? (Jim Kunstler)

• They KNOW And LIKE IT (Denninger)

• Appeals Court Reinstates Biden Vaccine Mandate For Business (JTN)

• Companies, Organizations Are Walking Back Vaccination Requirements (ET)

• Boeing Suspends Vaccine Mandate For Employees (JTN)

• Top Israel Ministers Agree On Covid Purple Ribbon Outline For Malls (JPost)

• Need For Social Restrictions Will Gradually Shrink Over Time – Whitty (BMJ)

• China’s Covid-zero Lockdowns Loom Over The Global Supply Chain (Qz)

• Kremlin Discusses Potential Putin-Musk Meeting (RT)

Vaccine hesitancy

So where did the idea of "vaccine hesitancy" come from? The same people who are demanding you be vaxxed or else. SAME PEOPLE. pic.twitter.com/LgMf6eqC3C

— Jeremy Kappell (@JeremyKappell) December 16, 2021

Massie

CDC lists at least 3 conventional type vaccines (inactivated/killed virus as opposed to RNA/DNA) on its own website that are recognized by the United States government as producing immunity to COVID, yet no conventional vaccine is available in the United States. Why @CDCDirector? pic.twitter.com/WRDePjUbb1

— Thomas Massie (@RepThomasMassie) December 18, 2021

A Bloomberg piece without a paywall for me.

• South Africa Hospitalization Rate Falls 91% in Omicron Wave (BBG)

South Africa delivered some positive news on the omicron coronavirus variant on Friday, reporting a much lower rate of hospital admissions and signs that the wave of infections may be peaking. Only 1.7% of identified Covid-19 cases were admitted to hospital in the second week of infections in the fourth wave, compared with 19% in the same week of the third delta-driven wave, South African Health Minister Joe Phaahla said at a press conference. Health officials presented evidence that the strain may be milder, and that infections may already be peaking in the country’s most populous province, Gauteng. Still, new cases in that week of the current wave were more than 20,000 a day, compared with 4,400 in the same week of the third wave. That’s further evidence of omicron’s rapid transmissibility, which a number of other countries, such as the U.K., are also now experiencing.

South Africa, which announced the discovery of the variant on Nov. 25, is being watched as a harbinger of what may happen with omicron elsewhere. Scientists have cautioned that other nations may have a different experience to South Africa as the country’s population is young compared with developed nations. Between 70% and 80% of citizens may also have had a prior Covid-19 infection, according to antibody surveys, meaning they could have some level of protection. Currently there are about 7,600 people with Covid-19 in South African hospitals, about 40% of the peak in the second and third waves. Excess deaths, a measure of the number of deaths against a historical average, are just below 2,000 a week, an eighth of their previous peak.

“It’s disappointing news for families anxious to vaccinate their tots.”

• Pfizer Tests Extra Covid Shot For Kids Under 5 In Setback (AP)

Pfizer said Friday it was changing plans and testing three doses of its COVID-19 vaccine in babies and preschoolers after the usual two shots didn’t appear strong enough for some of the children. Pfizer announced the change after a preliminary analysis found 2- to 4-year-olds didn’t have as strong an immune response as expected to the very low-dose shots the company is testing in the youngest children. It’s disappointing news for families anxious to vaccinate their tots. Pfizer had expected data on how well the vaccines were working in children under 5 by year’s end, and it’s not clear how long the change will delay a final answer.

Pfizer and its partner BioNTech said if the three-dose study is successful, they plan to apply for emergency authorization sometime in the first half of 2022. A kid-sized version of Pfizer’s vaccine already is available for 5- to 11-year-olds, one that’s a third of the dose given to everyone else 12 and older. For children younger than 5, Pfizer is testing an even smaller dose, just 3 micrograms or a tenth of the adult dose. Researchers analyzed a subset of youngsters in the study a month after their second dose to see if the tots developed levels of virus-fighting antibodies that were similar to teens and young adults who get the regular shots. The very low-dose shots appeared to work in youngsters under age 2, who produced similar antibody levels.

But the immune response in 2- to 4-year-olds was lower than the study required, Pfizer vaccine research chief Kathrin Jansen said Friday in a call with investors. Rather than trying a higher-dose shot for the preschoolers, Pfizer decided to expand the study to evaluate three of the very low-dose shots in all the study participants — from 6 months up to age 5. That third shot will come at least two months after the youngsters’ second dose. No safety concerns have been spotted in the study, the companies said.

From October 2021

• VAERS Deaths Are Underreported By A Factor Of 20 (RG)

Accurate estimates of COVID vaccine-induced severe adverse event and death rates are critical for risk-benefit ratio analyses of vaccination and boosters against SARS-CoV-2 coronavirus in different age groups. However, existing surveillance studies are not designed to reliably estimate life-threatening event or vaccine-induced fatality rates (VFR). Here, regional variation in vaccination rates was used to predict all-cause mortality and non-COVID deaths in subsequent time periods using two independent, publicly available datasets from the US and Europe (month-and week-level resolutions, respectively). Vaccination correlated negatively with mortality 6-20 weeks post-injection, while vaccination predicted all-cause mortality 0-5 weeks post-injection in almost all age groups and with an age-related temporal pattern consistent with the US vaccine rollout.

Results from fitted regression slopes (p<0.05 FDR corrected) suggest a US national average VFR of 0.04% and higher VFR with age (VFR=0.004% in ages 0-17 increasing to 0.06% in ages >75 years), and 146K to 187K vaccine-associated US deaths between February and August, 2021. Notably, adult vaccination increased ulterior mortality of unvaccinated young (<18, US; <15, Europe). Comparing our estimate with the CDC-reported VFR (0.002%) suggests VAERS deaths are underreported by a factor of 20, consistent with known VAERS under-ascertainment bias. Comparing our age-stratified VFRs with published age-stratified coronavirus infection fatality rates (IFR) suggests the risks of COVID vaccines and boosters outweigh the benefits in children, young adults and older adults with low occupational risk or previous coronavirus exposure. We discuss implications for public health policies related to boosters, school and workplace mandates, and the urgent need to identify, develop and disseminate diagnostics and treatments for life-altering vaccine injuries.

“Not only do the three vaccines authorized for emergency use require boosters due to waning “protective efficacy,” but they haven’t stopped breakthrough infections..”

• Guidance On Covid Vaccines Moves Closer To ‘Misinformation’ Of Skeptics (JTN)

Federal officials and advisors who have consistently boosted COVID-19 vaccines are starting to sound more like skeptics of the vaccines’ efficacy and safety. The face of the Biden administration’s COVID response is now making the same claims about vaccines that got a contrarian journalist booted from Twitter, while the CDC encouraged Americans to avoid a specific vaccine. National Institute of Allergy and Infectious Diseases Director Anthony Fauci cowrote a “perspective” in the New England Journal of Medicine (NEJM) Wednesday that acknowledged COVID vaccines were not living up to expectations. Not only do the three vaccines authorized for emergency use require boosters due to waning “protective efficacy,” but they haven’t stopped breakthrough infections, “allowing subsequent transmission to other people even when the vaccine prevents severe and fatal disease.”

Former New York Times reporter Alex Berenson wrote of the vaccines in August: “It doesn’t stop infection. Or transmission.” They have a “limited window of efficacy and terrible side effect profile.” Twitter permanently suspended him the same day for “repeated violations of our COVID-19 misinformation rules.” The social media company didn’t respond to Just the News queries seeking its distinction between claims by Berenson and Fauci and whether it would apply an “unsafe” warning to the NEJM essay, as it recently did to a study on increased heart risks in vaccine recipients, or otherwise restrict the publisher’s account. Twitter quietly updated its “COVID-19 misleading information policy” page sometime after Dec. 2, even while claiming through Wednesday that the update was made in November. (It corrected the month on Thursday, several days after Reclaim the Net noted the discrepancy.)

Among the new authority it grants itself, Twitter will punish users who claim vaccines, regardless of their authorization status, are “experimental”; taking them “would be more harmful than getting COVID-19”; and most pertinent to Fauci’s essay, vaccinated people “can spread or shed the virus … to unvaccinated people.”

“American doctors have proven to be cowards, cravens, zombies, and fools facilitating Dr. Fauci’s evil campaign — in concert with the rapacious pharmaceutical industry and a government in thrall to sinister forces that seek to destroy the country.”

• Where Do You Stand? (Jim Kunstler)

The public health bureaucrat who styles himself as “the Science” is at it again. In his quest to eliminate the control group for his experiment in hazardous mRNA injections, Dr. Anthony Fauci reiterated his warning that the nation faces “a crisis of the unvaccinated.” Omicron is upon us, he told a US Chamber of Commerce meet-up this week, and the hospitals will soon be overwhelmed by the unvaxxed. Oh really? In fact, the gravest threat to America’s public health is… Dr. Tony Fauci and his debauchery of medical science. This will surely come as a surprise to readers of The New York Times, who see in the two-year (so far) Covid-19 event a splendid opportunity to hasten the destruction of the US economy and our culture in order to consolidate their own power to coerce and control the population. Clear the offices! Shut down the social spaces! Make ordinary business as difficult as possible! Cancel Christmas! That’ll git’er done!

In fact, Dr. Fauci is likely responsible for a preponderance of the total 802,000 US Covid deaths — putting aside the number of people who actually died from highway accidents, cancer, diabetes, old age, and other causes, but were listed as covid deaths by hospital accounting personnel avid for federal subsidy cash. It was Dr. Fauci who organized the suppression of easily marshaled and inexpensive early treatments for the disease, namely hydroxychloroquine, ivermectin, fluvoxamine, budesonide, azithromycin, monoclonal antibodies, Vitamin D, etc. It was Dr. Fauci who promoted the protocol of sending sick patients home from the ER without any treatment to await the further development of fatal clotting in their lungs. It was Dr. Fauci who designated the drug remdesivir — which he developed years ago for hepatitis-C (it did not work) with a financial stake in the patents — as the primary inpatient treatment for Covid-19.

And then it turned out that remdesivir destroys patients’ kidneys and is ineffective anyway in late treatment of the disease when viral loads wane and spike proteins have already created the fatal capillary clots in the alveoli of the lungs and in other organs. It’s Dr. Fauci who is responsible for the emergency use authorization on the mRNA “vaccines” that may have killed hundreds of thousands more Americans — based on the CDC’s VAERS system and statistical analysis of its inherent under-reporting at only 2.2 percent of all actual events— and you can add multiples more in non-fatal adverse reactions, including permanent disabilities. It’s Dr. Fauci who finagled the inadequate and botched trials of the mRNA vaccines in order to rush them into use.

And now it’s Dr. Fauci who wants to vaxx up all the children in America, despite evidence that the mRNA shots permanently disable children’s innate natural immune systems and can cause lasting heart, blood vessel, brain, and reproductive damage, and also despite the fact that few children are susceptible to serious Covid illness in the first place. [..] American doctors have proven to be cowards, cravens, zombies, and fools facilitating Dr. Fauci’s evil campaign — in concert with the rapacious pharmaceutical industry and a government in thrall to sinister forces that seek to destroy the country. The doctors have disgraced and dishonored themselves. The doctors have probably undermined their own vocations, as well as the entire armature of US health care, which they have allowed to become history’s worst racketeering operation.

“How carefully would you drive if it was mandated by law that you must have a 6″ spike mounted in the center of the steering wheel pointed at your chest — and seat belts were illegal?”

• They KNOW And LIKE IT (Denninger)

Folks, can we cut the bull**** please? Insurance companies are regulated. They are only permitted to make a certain amount of gross margin, typically 10%. Said regulation is enforced; firms are required to file their rates with state regulators along with the previous year’s results and projections for next. This applies to health insurance, car insurance, homeowners insurance, all insurance. Therefore there are exactly two ways for an insurance company to grow in size and profits: • Have more-frequent events results in a loss. • Have the same number of events but make them more expensive. That’s it. Efficiency is backwards because if you have overhead of 30% and cut it to 20% you don’t get to keep the other 10% in the company as profit which in any other line of business is yours to pocket. You wind up having to cut rates!

I have some data for health rates for firms in the midsized corporate world. I also have the Obamacare numbers for 2021 in a number of places, since those are published. They’re up. A lot. In some cases and places, by 30%. Do you really think the health insurance and health care providers care if you get a bad reaction from the jabs? No, they like it, provided it doesn’t kill you immediately. See the above for why. That you get ****ed is just business. You think the car insurance companies push all that expensive tech and “improvements” because it results in fewer crashes? Well, has it resulted in fewer crashes? Notice how the media and car companies, along with the insurance firms and their public-facing folks such as the crash-test people, always talk about fatality rates, not crashes.

A fatal car crash means you are no longer a customer. But that collapsible steering column isn’t for you, really — it doesn’t do anything to prevent the crash, it just costs more money if you crash and increases the odds you’ll live. This means (1) you’re still a customer and (2) the car costs more to repair or must be replaced. Obviously if you’re dead you don’t need another car, do you? Nor will you ever buy car insurance again. Oh, you think this is fanciful BS? Uh, nope. How carefully would you drive if it was mandated by law that you must have a 6″ spike mounted in the center of the steering wheel pointed at your chest — and seat belts were illegal?

“This mandate will make it even harder for small business owners to find and keep employees.”

• Appeals Court Reinstates Biden Vaccine Mandate For Business (JTN)

A federal appeals court on Friday night reinstated President Joe Biden’s COVID-19 vaccine mandate for private companies with more than 100 workers, reversing lower court rulings and setting up a likely showdown before the U.S. Supreme Court. A three-judge panel of the 6th U.S. Circuit Court of Appeals ruled 2-1 that the U.S. Occupational Safety and Health Administration had the authority to Impose the mandate due to take effect Jan. 4. “Given OSHA’s clear and exercised authority to regulate viruses, OSHA necessarily has the authority to regulate infectious diseases that are not unique to the workplace,” the court conckuddd in its majority opinion.

Within an hour of the decision, the small business group Job Creators Network filed an appeal to the high court, saying the appeals judges “irresponsibly upheld an illegal rule.” “This mandate adds an incredible burden on small business owners who are still suffering negative effects of the pandemic,” the group said. “This mandate will make it even harder for small business owners to find and keep employees.” The ruling came after several challenges from GOP-led states and conservative and business groups were consolidated before the Cincinnati-based 6th circuit. The decision was supported by one Democrat-appointed judge and one Republican appointee and opposed by the third judge, who was appointed by former President Donald Trump.

Arkansas Attorney General Leslie Rutledge told The Associated Press she would immediately appeal to the Supreme Court. “The Sixth Circuit’s decision is extremely disappointing for Arkansans because it will force them to get the shot or lose their jobs,” she said. South Carolina Attorney General Alan Wilson, tweeted he was confident the mandate would be blocked by the justices. “We will go immediately to the Supreme Court- the highest court in the land- to fight this unconstitutional and illegal mandate,” he said. “The law must be followed and federal abuse of power stopped.”

Too many hold-outs.

• Companies, Organizations Are Walking Back Vaccination Requirements (ET)

More and more businesses in recent days have walked back previous rules mandating COVID-19 vaccines as a condition for employment in a bid to keep workers. Earlier this week, Amtrak—a quasi-public corporation—became the latest to rescind its vaccine requirement amid concerns about staff shortages and cut service in January. In a memo sent to staff that was obtained by The Epoch Times, Amtrak CEO William Flynn said the company would do away with the mandate that would have given employees until Jan. 4 to get fully vaccinated or go on unpaid leave. About 500 out of more than 17,000 Amtrak workers remain unvaccinated, according to the memo. Still, the sudden loss of that many workers would have caused service disruptions, Flynn suggested, while noting that Amtrak was acting in accordance with recent court orders handed down against President Joe Biden’s sweeping vaccine mandates.

Several hospitals and healthcare systems have similarly rescinded vaccine mandates for employees and cited labor issues that were triggered by the new requirements. In early December, Florida’s AdventHealth announced the end of its vaccine requirement for some 83,000 workers, also citing the several recent court injunctions against federal mandates. “Due to recent decisions by the federal courts to block the [Centers for Medicare & Medicaid Services] vaccine mandate, we are suspending all vaccination requirements of our COVID-19 vaccination policy,” AdventHealth Chief Clinical Officer Neil Finkler said in a letter to staff. The move came after the Centers for Medicare & Medicaid Services confirmed to The Epoch Times that the agency suspended enforcement following two court orders several weeks ago.

Tenet Healthcare, HCA Healthcare, and Cleveland Clinic recently announced they are pulling back as well, citing labor concerns. Along with AdventHealth, the three healthcare companies operate a combined 300 hospitals and have more than 500,000 workers. They cited recent court orders that blocked Centers for Medicare & Medicaid Services from enforcing its mandate on Medicare- and Medicaid-funded medical facilities. The rule was announced by Biden on the same day that he confirmed that he would impose mandates on federal government employees, businesses who have contracts with the federal government, and, most controversially, businesses that have 100 or more workers.

“Boeing has suspended its vaccine requirement in line with a federal court’s decision prohibiting the enforcement of the federal contractor executive order and a number of state laws.”

• Boeing Suspends Vaccine Mandate For Employees (JTN)

Boeing Friday said it has suspended its requirement that U.S.-based employees be fully vaccinated or face losing their jobs. The announcement comes as several attempts by President Joe Biden to require vaccinations for workers in various settings have been blocked by courts in recent weeks. “Boeing is committed to maintaining a safe working environment for our customers, and advancing the health and safety of our global workforce,” a company spokesperson told KOMO News. “As such, we continue to encourage our employees to get vaccinated and get a booster if they have not done so. Meanwhile, after careful review, Boeing has suspended its vaccine requirement in line with a federal court’s decision prohibiting the enforcement of the federal contractor executive order and a number of state laws.”

A U.S. District Court judge in Georgia on Dec. 7 issued a preliminary injunction against Biden’s executive order requiring all companies that contract with the federal government to have a vaccine mandate in place. The order was to have taken effect starting Jan. 4. Earlier orders requiring all employers with 100 or more employees to require vaccinations and one requiring all healthcare workers to be vaccinated have also been blocked by courts. Biden’s executive order requiring all federal workers to be vaccinated is facing 17 lawsuits, but no judges have granted requests to block it. Courts have also ruled that private employers, states, local municipalities and public universities are able to issue vaccine mandates.

In an internal memo to employees obtained by Defense News, Boeing said 92% of its U.S.-based workforce had either provided proof of vaccination or received a medical or religious exemption. “The success of Boeing’s vaccine requirement to date positions the company well to comply with the federal executive order should it be reinstated in the future,” the memo said. Reuters reported last month that some 11,000 Boeing employees, about 9% of its North American workforce, had requested an exemption. It is unclear how many were granted.

Every plan so far has failed.

• Top Israel Ministers Agree On Covid Purple Ribbon Outline For Malls (JPost)

A “strict” Purple Ribbon outline will be applied immediately to all indoor shopping malls, the Prime Minister’s Office said late Friday night. The announcement came after two days of discussion on how to handle shopping malls, and as the number of coronavirus cases spikes across Israel. The decision was made jointly by Prime Minister Naftali Bennett, Health Minister Nitzan Horowitz, Economy Minister Orna Barbivai and MK Abir Kara. One person for every 15 square meters will be allowed to shop. And increased enforcement of mask wearing will be established. Moreover, the officials agreed, mall hours will be extended in order to accommodate shoppers and immunization complexes will be established in 50 main centers in the malls to encourage people to get the jab. Those who are vaccinated will enjoy special privileges.

Bennett had wanted to require the malls operate under the Green Pass outline, meaning that individuals would have to be fully vaccinated or take a COVID test to enter the facilities. The only exception would have been to access essential products. But fierce opposition by retailers and some members of the government on Thursday pushed the plan to the side. Friday night’s announcement said that if morbidity rates continue to climb then the Green Pass outline will once again be considered for any facility over 100 square meters. The above plan is still not final. It will be discussed at the cabinet meeting on Sunday, drafted as regulations and then voted on by the coronavirus cabinet via telephone poll. Once passed, the outline will begin immediately. Bennett is also reportedly expected to bring a resolution to the meeting that would mean almost the complete closure of the skies. Bennett’s proposal, N12 reported, is expected to include a ban on travel to most countries in the world, including the United States and other countries in Western Europe.

Just 18 more months to flatten the curve.

• Need For Social Restrictions Will Gradually Shrink Over Time – Whitty (BMJ)

The development of polyvalent vaccines and new antivirals should lessen the need for social restrictions from around the middle of 2023, England’s chief medical officer has told MPs. Giving evidence to the House of Commons Health and Social Care Committee on 16 December, Chris Whitty said that although the UK may need intermittent social restrictions against covid-19 over the next 18 months, future medical advances should provide the “heavy lifting” against new variants. He said, “If I project forward, I would anticipate in a number of years, possibly 18 months, possibly slightly less, possibly slightly more, we will have polyvalent vaccines which will cover a much wider range [of variants].

And we will probably have several antivirals . . . and a variety of other countermeasures that mean that the great majority, and probably almost all, of the heavy lifting when we get a new variant—unless it is extremely different—can be met by medical means.” He added, “So I don’t see this as a kind of ‘we’re going to have to do this [social restrictions] repeatedly every few months’ situation. I think the risks will gradually decrease over time; it’s incremental.” However, Whitty said that for now some social restrictions may be necessary to tackle variants such as omicron that show some partial escape from vaccines and could overwhelm the NHS if left unchecked.

He said, “We’ve come from a place where we had absolutely nothing [in terms of medical interventions], so everything had to be done by social distancing and all the disruptive things that went with that right at the beginning. Where we are at the moment is kind of in a transition period. A very large amount of it can be done by [vaccines], and this is why the boosters are so absolutely essential, but we’re not quite in the rather safer haven I expect we will have in a couple of years’ time.”

“This is only the beginning—the first quarter of 2022 is going to be a complete wreck.”

• China’s Covid-zero Lockdowns Loom Over The Global Supply Chain (Qz)

A new covid-19 lockdown imposed last week (Dec. 7) in the port city of Ningbo, China, is raising the specter of further disruptions to an already battered global supply chain. There are more than 200 cases so far in the most recent cluster in the manufacturing province of Zhejiang, which includes the city of Ningbo. The outbreak is said to be spreading “relatively rapidly,” and has led to the closures of dozens of factories. So far, the lockdowns have restricted trucks going in and out of the port, slowing operations. While there are no reports yet of the port closing, the lockdown, combined with weeks of intensifying covid-zero restrictions, is worrying logistics professionals.

“The rising covid infections may lead to shutdowns at Ningbo and some other ports in China, adding to congestion and cargo backlogs,” a source from a UK-based logistics company said on Dec. 7 to S&P Global Platts, an analytics firm. “This is only the beginning—the first quarter of 2022 is going to be a complete wreck.” China’s pursuit of covid-zero has led to swift, severe measures to control the spread of infection, and policies to contain covid have only intensified since the omicron variant began to spread. On Monday (Dec. 13), Xinhua, the state-run news agency, singled out ports as the entry point for the most recent cluster of infections, and reported that the government will be tightening covid controls at port cities.

China’s policies at port have an outsized impact on the overall functioning of the global supply chain. The country is the world’s largest exporter of goods, as well as the largest importer of commodities. More ships call into the ports of China than any other country. “The global supply chain recovery relies on China,” said Atul Vashistha, CEO of Supply Wisdom, a New York-based risk intelligence company. “That’s an alarming and troubling truth considering China’s centricity to the supply chain. While it may be a sound public health policy, China’s zero-tolerance covid policy makes supply chain matters worse.”

”In May, Russia’s Ministry of Industry and Trade invited the Tesla CEO to discuss the possibility of opening a factory in the country, after he indicated that he was considering such a move.”

• Kremlin Discusses Potential Putin-Musk Meeting (RT)

Russian President Vladimir Putin and South African-born billionaire Elon Musk could have a long-awaited meeting if the world’s richest man steps up and develops business interests in the country, the Kremlin has indicated. Speaking to journalists on Friday, Putin’s press secretary, Dmitry Peskov, said that the president has always been interested in meeting with foreigners who are keen to invest in Russia, adding that this could include Musk. “Without a doubt, the president is open to discussions with foreign businessmen,” Peskov explained. “There are regular discussions, practically every year, with French entrepreneurs, Germans, those with a large presence in our market. You and I know that Elon Musk isn’t in our market, but we hope that with time, he will become interested in it. And then, a meeting with the president isn’t out of the question.”

In February, Musk tweeted an invitation to Putin to chat with him via the audio-only social media app Clubhouse, writing, “It would be a great honor to talk with you.” The Kremlin replied that Musk’s invitation was “interesting,” and media reported that Putin hadn’t ruled out the possibility of a conversation. However, the meeting has not yet taken place. In May, Russia’s Ministry of Industry and Trade invited the Tesla CEO to discuss the possibility of opening a factory in the country, after he indicated that he was considering such a move. In addition to heading Tesla, the world’s most valuable automaker, Musk is also the founder of space transportation company SpaceX. In October, Forbes estimated his net worth at $271.3 billion, making him the richest person alive and, according to some measures, the richest in history.

Donziger

From home confinement, Steven Donziger (@SDonziger) joined the #FreeAssange livestream event to show solidarity with fellow political prisoner.

Assange "represents ability to take on entrenched interests in our society, be they national security state" or fossil fuel industry pic.twitter.com/9cd6VNma2l

— Kevin Gosztola (@kgosztola) December 17, 2021

Maddow, Tucker, Assange

If Assange loses, we all lose. pic.twitter.com/oUopugzNZO

— Matt Orfalea (@0rf) December 16, 2021

Support the Automatic Earth in virustime with Paypal, Bitcoin and Patreon.

Debt Rattle October 9 2021

Oct 092021

October 9, 2021 Posted by Raúl Ilargi Meijer at 7:12 am Finance Tagged with: Bellingcat, Biden, FDA approved, foreign agent, Malone, mandates, Musk, Russia, VanDen Bossche 67 Responses »

Pablo Picasso Carnival Bistro [Study] 1908

• The Unforgivable Sin (VanDen Bossche)

• All You Need To Know About Vaccine Failure In One Incredible Chart (Berenson)

• Joe Biden’s Vaccine Mandate Doesn’t Exist. It’s Just A Press Release (Fed.)

• No FDA-Approved COVID-19 Shots Available (LC)

• Covid-19 Vaccine Negative Effectiveness As Low As Minus 86% (TE)

• No Biden, You’re Wrong (Denninger)

• Los Angeles County Sheriff Refuses to Enforce Vaccine Mandate (SN)

• The Mark of the Beast (Jim Kunstler)

• Ottawa Will Ban All Unvaccinated People From Leaving Canada (Ici)

• Inventor of mRNA Banned By The New England Journal of Medicine (Hope)

• Bellingcat Officially Labelled ‘Foreign Agent’ By Moscow (RT)

• Russia Is Not To Blame For Soaring Gas Prices – Merkel (RT)

• Tesla Move Came After California Legislator Tweeted ‘f-k Elon Musk’ (SFGate)

Fun fact: Between 100-200 United States Congress Members (plus many of their staffers & family members) with COVID.. were treated by a colleague over the past 15 months with ivermectin & the I-MASK+ protocol at https://t.co/OvU8SLfLJq. None have gone to hospital. Just sayin'

— Pierre Kory, MD MPA (@PierreKory) October 8, 2021

@DrEliDavid: After vaccinating over 85% of its population, Singapore finally flattened the curve, but along the wrong axis:

“..that vaccination of youngsters and children will provide them with improved protection from contracting severe disease is a textbook example of scientific nonsense..”

• The Unforgivable Sin (VanDen Bossche)

One wonders how it is possible that while it has now been reported that vaccinated shed and transmit as much virus as unvaccinated people (1), the vaccinated are still protected against severe disease whereas the unvaccinated are said to be unprotected. So, how can one explain that viral shedding and transmission and hence, viral replication no longer seem to be impacted by the vaccine whereas the opposite still applies to the occurrence of (severe) disease? Based on their study results, the authors from the above-mentioned report (1) conclude that there is no significant difference in viral load between groups of vaccinated and unvaccinated, asymptomatic and symptomatic people who became infected with SARS-CoV-2 Delta variant. So, again: Considering that vaccinees shed and transmit as much virus as unvaccinated people, how could one even postulate that unvaccinated people are susceptible to severe disease whereas vaccinees are still largely protected from severe disease? Frankly speaking, this doesn’t make any sense at all.

[..] As the mechanism of immune defense in vaccinees is totally different from the one at play in unvaccinated individuals, the mantra of mass vaccination stakeholders that vaccination of youngsters and children will provide them with improved protection from contracting severe disease is a textbook example of scientific nonsense. Their irrational, erroneous extrapolations lead people to believe that they should get their children vaccinated whereas there is barely any more catastrophic immune intervention one could think of. In line with the intrinsic functional properties of innate, multi-specific Abs, healthy children and youngsters are NOT ‘naturally’ susceptible to any Sars-CoV-2 lineage but exclusively acquire such susceptibility as a direct consequence of functional suppression of their well-established innate immune capacity due to a rapid re-exposure event or, even much worse and long-lived, due to vaccination.

The likelihood of rapid re-exposure to Sars-CoV-2 after previous infection dramatically increases when highly infectious variants expand in prevalence. Such an expansion in prevalence directly results from mass vaccination campaigns as mass vaccination turns vaccinees into an excellent breeding ground for naturally selected S-directed immune escape variants. So, unless there is any contradiction in the above reasoning and unless somebody could explain how similar viral replication and transmission dynamics in vaccinated as compared to unvaccinated individuals could lead to dissimilar clinical manifestations of infection, we can only conclude that the scenario is the following: Vaccination of children and youngsters is turning off their broadly protective innate immunity in exchange for S-specific vaccinal Abs that are becoming increasingly useless since their neutralizing capacity becomes more and more eroded as a result of enhanced escape of Sars-CoV-2 from neutralizing Abs [NAbs] (a trend that has been clearly confirmed by molecular epidemiologists (8)).

Resistance to the neutralizing effect of vaccinal Abs that are nevertheless still able to bind Sars-CoV-2 virions and thereby outcompete protective innate Abs is likely to enhance the susceptibility of vaccinees to ADE (Ab-dependent enhancement of disease). Unless virology and immunology are being rewritten, I cannot imagine how mass vaccination of our youngsters and children will not lead to an even more disastrous outcome of all the scientifically irrational and unjustifiable vaccination efforts. Not only will this dramatically increase the children’s risk to succumb to (accelerated) Covid-19 disease but it will also take away the highly efficient capacity of healthy, unvaccinated people to diminish the dangerous, ever rising viral infectious pressure in the population.

From a study into substance abuse.

• All You Need To Know About Vaccine Failure In One Incredible Chart (Berenson)

This study was large and well-conducted. It used a database that covers 85 million Americans in 63 health-care organizations. It was published Oct. 5 in World Psychiatry, a peer-reviewed journal. People were included if they’d had no Covid infection before vaccination and had been “fully vaccinated” – that is, 14 days after the second dose. The researchers wound up examining medical records of about 580,000 Americans, 30,000 with a substance use disorder, 550,000 without. They found that just over 7 percent of people with a use disorder wound up with a breakthrough infection between January and August, compared to 3.6 percent of those without. Okay. Set aside the small group of users and focus only on the 550,000 people in the non-using group. They had a 3.6 percent chance of infection for fully vaccinated people over eight months, January to August.

But eight months is really about four months. Why? These are BREAKTHROUGH infections, and the average vaccinated American was not “fully” vaccinated until mid-April. (Remember, too, that “breakthrough” infections do not include the two weeks after the first dose, when vaccine efficacy is somewhere between zero and negative.) So 1 in 28 “fully vaccinated” people was infected over the four months when the vaccines were at peak effectiveness. Because vaccines work! — But story gets worse. Much worse. The researchers stratified the risk of infection by month, January through August. Here’s that chart – for the 550,000 people WITHOUT a substance use disorder, in other words the vast majority of the sample.

Time trend of incidence rates (cases/person-day) of breakthrough COVID-19 infection in patients with and without substance use disorder (SUD)

The rate of breakthrough infections rose FIVE-FOLD between July and August (and roughly 20-fold from March to August). By the way, the scale here represents the rate of breakthrough infections PER DAY. In other words, in August, those 550,000 fully vaccinated people had a roughly 1 in 200 chance of being infected each day. (Which translates into about a 7 percent chance for the month, which doesn’t match the 3.6 percent total infection rate for this group for the entire time period. It is possible the data does not cover the entire month. Nonetheless the trend could not be clearer.) As the researchers explained: A similar trend was observed in the non-SUD population: the rate of breakthrough infection steadily increased from 0 cases/person-day in January 2021 to 0.0009 cases/person-day in June 2021, and then reached 0.0049 cases/person-day in August 2021 (5.4 times faster than in June 2021)

It is simply impossible to argue about vaccine failure any more. Whether it’s because of the Delta variant, waning antibodies, or some combination, the vaccines simply don’t provide infection (and thus transmission) protection. The only studies that show anything like 80 or 90 percent protection after a few months are those the companies have funded. Maybe they provide some protection against serious cases – hospitalizations and deaths – for longer, but we don’t know how long, and that efficacy declines too.

There is no mandate, and there are no FDA approved shots available -in America. It’s a curious game.

• Joe Biden’s Vaccine Mandate Doesn’t Exist. It’s Just A Press Release (Fed.)

Yes, we’ve heard all about Joe Biden’s alleged vaccine mandate for private companies employing 100 or more people. It was all over the news even before he announced it on September 9. His announcement has jeopardized the employment of millions of Americans and increased worker shortages in critical domains such as health care. There’s only one problem. It’s all a mirage. Biden’s so-called vaccine mandate doesn’t exist — at least, not yet. So far, all we have is his press conference and other such made-for-media huff-puffing. No such rule even claiming to be legally binding has been issued yet.

That’s why nearly two dozen Republican attorneys general who have publicly voiced their opposition to the clearly unconstitutional and illegal mandate haven’t yet filed suit against it, the Office of the Indiana Attorney General confirmed for me. There is no mandate to haul into court. And that may be part of the plan. According to several sources, so far it appears no such mandate has been sent to the White House’s Office of Information and Regulatory Affairs yet for approval. The White House, the Occupational Safety and Health Administration (OSHA), and the Department of Labor haven’t released any official guidance for the alleged mandate. There is no executive order. There’s nothing but press statements.

Despite what you may have been falsely led to believe by the media fantasy projection machine, press statements have exactly zero legal authority. “There is nothing there yet that gives employers any mandate,” Stephanie McFarland, spokeswoman for the Indiana Occupational Safety and Health Administration, told me Oct. 6. “The president made an announcement on this asking OSHA to do it, but we’ve not yet seen anything come from it yet,” she also said. When the state agency gets any further information, she said, they’ll review it. To impose the public perception of a mandate, the Biden administration is following an unusual rule-making process it also employed earlier this year, called an emergency temporary standard (ETS).

The spring ETS rule took nearly six months to issue. Meanwhile, companies are telling reporters their vaccine mandates will have at the latest December deadlines. (For those who can’t calendar, that’s four months after Biden’s non-existent mandate was proclaimed. According to OSHA, an ETS takes up to six months to go into effect after the initial mandate is issued in the Federal Register — which, again, for the proclaimed 100-employee mandate hasn’t happened yet.) Lawyers for big business were blunt about their love for this mandate mirage: “Everybody loves this cover,” Minneapolis employment lawyer Kate Bischoff told Bloomberg Law in September. “Many were already looking down the road at doing this, but the fact that they get to blame Biden is like manna from heaven.”

“The FDA did a bait and switch by announcing it approved its “first COVID-19 vaccine” in order to push the “vaccine” mandates and protect the Pfizer pharmaceutical company from legal liability. The Pfizer injection, on the other hand, is still considered experimental under U.S. law.”

• No FDA-Approved COVID-19 Shots Available (LC)

There are currently no fully FDA-approved licensed COVID shots available. All COVID shots remain under federal Emergency Use Authorization, meaning individuals have the “option to accept or refuse” the product. On September 22, 2021, the Food and Drug Administration (FDA) sent a follow-up letter to the original approval to Pfizer pharmaceutical company that stated, “having concluded that revising this EUA is appropriate to protect the public health or safety under section 564(g)(2) of the Act, FDA is reissuing the August 23, 2021 letter of authorization in its entirety with revisions incorporated to authorize for emergency use the administration of a single booster dose of COMIRNATY.”

On page 6, footnote 12 of that letter the FDA clearly states, “Although COMIRNATY (COVID-19 Vaccine, mRNA) is approved to prevent COVID-19 in individuals 16 years of age and older, there is not sufficient approved vaccine available for distribution to this population in its entirety at the time of reissuance of this EUA. Additionally, there are no products that are approved to prevent COVID-19 in individuals age 12 through 15, or to provide: an additional dose to the immunocompromised population, or a booster dose to the authorized population described in this EUA”.

On August 23, 2021, the FDA sent an approval letter to Pfizer regarding the BioNTech injection, Comirnaty. The letter states: “Under this license, you are authorized to manufacture the product, COVID-19 Vaccine, mRNA, which is indicated for active immunization to prevent coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) in individuals 16 years of age and older.” The FDA did a bait and switch by announcing it approved its “first COVID-19 vaccine” in order to push the “vaccine” mandates and protect the Pfizer pharmaceutical company from legal liability. The Pfizer injection, on the other hand, is still considered experimental under U.S. law.

There is a legal difference between products approved under authorization of emergency use (EUA) compared with those the FDA has fully licensed. The FDA issued another letter for the existing Pfizer shots which confirms they are still under EUA, are not fully approved, and has a liability shield. That means people must be told the risks and benefits, and they have the “option to accept or refuse” the product. The federal Emergency Use Authorization law and the FDA, including the FDA Fact Sheet, state unequivocally that each person has the “option to accept or refuse” the shots.

See yesterday, The Vaxx is Dead.

Covid-19 Vaccine Negative Effectiveness As Low As Minus 86% (TE)

The efficacy of all available vaccines combined is as low as – 85.71% within the 40-49 age group, and as high as – 3.4% in the 30-39 age group. This shows that the Covid-19 vaccines are making people more susceptible to catching Covid-19, rather than preventing cases of Covid-19 by the claimed 95%. By combining the numbers provided for all age groups over the age of 30, we have been able to calculate an average vaccine effectiveness of – 47.69%, and we’re definitely seeing this in the number of confirmed cases by vaccination status.

Between week 36 and week 39 of 2021 there were 41,149 confirmed Covid-19 cases in the unvaccinated over 30’s, 14,649 confirmed cases in the partly vaccinated over 30’s, and a frightening 243,373 confirmed cases in the fully vaccinated over 30’s. The new UK Health Security Agency report proves without a shadow of a doubt that the Covid-19 vaccines do not work, and actually make the recipients worse.

“He lied and he knew it. Those who he wants to fire if they won’t follow his dictatorial Mengele-style mandate know it too; many of them see it every day because they’re health-care workers.”

• No Biden, You’re Wrong (Denninger)

Yesterday Biden scolded us all about how “vax mandates work.” Well, not really. Yes, you might get people who are over-levered (their fault) and unable to erect the middle finger to “comply.” But in doing so you permanently destroyed their willingness to put 100% into their job. Now they are all pissed off, working only to the minimum required to not get fired, they hate their boss, they hate the company, they hate every screaming Karen who wagged their finger at them, they hate Biden and they’d like to see all of them bankrupt, gone, even dead. In today’s tight labor market you can’t replace them either; who are you going to hire? The bong-smoker you paid for a year to sit around and get stoned? How joyous and hopeful is such a person? Are they inclined to spend on luxuries?

Take on more leverage and build businesses, families and prosperity? When you threaten to force them to do whatever you demand again — and again — and again — even at the cost of their own health, money and life? The economic damage from this is permanent. So is firing those who won’t comply. Oh, they’ll go find something else to do — but odds are those independent thinkers are the top 5 or 10% of any organization. Get rid of them and it’s like firing five ordinary people for the one you did. Of course nobody thinks of that, but then again not many people are smart when it comes to this sort of thing. They should be — but they’re not. Never mind the defense contractors. The problem is much worse there. A handful of people are key resources. They leave, the project isn’t deliverable anymore because it can’t be completed and you can’t just go hire a replacement because of necessary security clearances.

It takes a year or more to get a new TS approved. Does that new engineer also need SCI or (god forbid) SAP access for your nice project? That takes even longer. Never mind those who “go along” and play nice-nice with your “mandate”; how sure are you they’re still loyal and not willing to stab the United States in the back? After all you just ****ed them so….. you didn’t think this through very well, did you? What happens when two months after their wife gets jabbed — because you demanded it as she’s on the health insurance plan at the company — she gets breast cancer? Now how loyal is that person? Of course there were the lies. You won’t “get” Covid if you get jabbed, so said Biden. Biden’s own government has analyzed that and found it is not true — of those over 65 as of August 7th 60% of the hospitalized Covid-19 cases were fully vaccinated. It’s almost-certainly higher now. He lied and he knew it. Those who he wants to fire if they won’t follow his dictatorial Mengele-style mandate know it too; many of them see it every day because they’re health-care workers.

“The issue has become so politicized. There are entire groups of employees that are willing to be fired and laid off, rather than get vaccinated.”

• Los Angeles County Sheriff Refuses to Enforce Vaccine Mandate (SN)

Los Angeles County Sheriff Alex Villanueva has refused to enforce a local vaccine mandate, saying he would risk losing up to 10 per cent of his workforce if he did. After his department’s budget was cut by $145.5 million in June 2020, partly as a result of the ‘defund the police’ movement, Villanueva says he already faces losing hundreds of officers. Enforcing COVID vaccine mandates would further cripple the force at a time when homicides have surged 31 per cent in the first six months of 2021 compared to last year. “This is like the worst of two worlds right here, so we have to pick and choose,” said Villanueva, adding that he would lose 5-10 per cent of his staff “overnight” if he enacted the Los Angeles City Council’s mandate, which was passed on Wednesday. “I’m not forcing anyone,” said Villanueva.

“The issue has become so politicized. There are entire groups of employees that are willing to be fired and laid off, rather than get vaccinated.” The mandate, which is one of the strictest in the nation, goes into effect in November 4 and forces anyone wishing to enter bars, restaurants, gyms and other venues to show proof of COVID-19 vaccination or a negative test. It also makes the jab compulsory for city employees, a massive problem given that 24% of the Los Angeles Police Department’s 12,000 employees last month sought religious or medical exemptions to the vaccine mandate. Villanueva’s refusal to enforce the mandate follows his insistence that mask mandates are not “backed by science” and that he wouldn’t be enforcing that either.

“Your “vaccine” makes people sick. Soon, it will be self-evident everywhere that this “vaccine” is just another side of your boutique sickness.”

• The Mark of the Beast (Jim Kunstler)

The Covid-19 spell breaks. The beast thought it was a good idea to deprive millions of their livelihoods just to get its way and force them to submit to a medical experiment conceived in the utmost bad faith. You say your “vaccine” is defeating the plague that you schemed to create and beset the world with? We know exactly what you did. We know that most of the people getting sick now are the “vaccinated.” Look what happened in Israel. Too far to see? Look right here in Vermont. Your “vaccine” makes people sick. Soon, it will be self-evident everywhere that this “vaccine” is just another side of your boutique sickness.

Meanwhile, you’ve cleverly destroyed medicine itself by forcing the firings of nurses, doctors, and the people who clean up the hospitals. The people will not forgive you for this reckless and craven stupidity. And, of course, nobody knows the long-term effects of your jabbing spree. Has every vaxed-up person got a controlled demolition underway in their organs and blood vessels? Why are there suddenly a striking number of heart attacks and strokes tallied in Great Britain? Concerning, ya think? They’re counting, at least. In America, we’re not even tracking. This now-sinister enterprise called “The Science” doesn’t really want to see any numbers, and if any happen to come up, its minions like to play games with the math, which can tell any story they want it to.

Suddenly, as if from nowhere an energy crisis is upon us — but you knew it was there all along, or you should have known. Things don’t work well when the fossil fuels get scarce or pricey or have to come from so far away that getting them is beyond your control. When these things happen, everything you need costs more and some things quit working altogether. The EU bureaucrats thought they would force a dozen countries to go “green” by sheer force of will. They thought that blocking the Nordstream 2 pipeline — designed to bring Russian natgas to the West — was a good idea. “Joe Biden’s” first act in office was to shut down the Keystone pipeline. Look now, there’s color in the treetops and the temperatures are falling. That frost on the pumpkin isn’t so charming when there’s also frost inside your windowpanes.

The lights may be going out in your house, but that will finally switch on the light in your brain. You’ve been played. The global economy of interdependent super-systems is breaking apart. It seemed like a good idea at the time when the beast put it together… the Lexus and the Olive Tree and all that reassuring bullshit… and now times have changed. Now the supply lines are choking on their own hyper-complexity as each nation in the global “community” has to contend with its own bad decisions and the fragilities they have exposed. Chinese factories don’t work so well without Australian coal. Here’s an idea: maybe someday Australia will get back to work and learn how to make something with its own coal. (America, are you alert?)

Google translate.

• Ottawa Will Ban All Unvaccinated People From Leaving Canada (Ici)

The information went unnoticed. By confirming on Wednesday an announcement already made in the middle of the summer, Prime Minister Justin Trudeau and his team unveiled some details concerning the compulsory vaccination for civil servants, but also for travelers. Until now, airlines have expected compulsory vaccination for all passengers who board a plane within the country. This measure will be implemented from October 30. But the federal government is preparing to go even further. Starting this fall, no one will be able to leave Canada without being properly vaccinated. Vaccination requirements will apply to all travelers aged 12 and over who are air passengers on domestic, transborder or international flights departing from a Canadian airport.

Extract from a Transport Canada press release: “In an exchange of emails, the Department of Transport confirmed to Radio-Canada that this requirement does indeed apply to all travelers, Canadians or not, who would like to leave the country from Canadian airports. We will invite operators to determine how best to leverage the appropriate tools to implement these requirements for travelers.” “There are already rules and extensive restrictions on travelers entering Canada from abroad , says Sara Johnston, spokesman for the Department of Transport. Indeed, since the beginning of September, only adequately vaccinated tourists can enter Canada. However, temporary workers and foreign students who do not have their two doses of vaccines recognized by Canadian authorities have the right to arrive, but are subject to screening tests and a 14-day quarantine.

As soon as this regulation comes into force, the latter may not be able to leave Canada. A transition period until November 30 will allow travel without being vaccinated, provided they present a negative molecular test for COVID-19 carried out in the 72 hours prior to travel. In addition, Transport Canada promises to issue new directives by that date “concerning travel restrictions for unvaccinated temporary foreign workers or foreign students who wish to take a connecting flight as part of their return trip to Canada.”

“..banned from reading..”

• Inventor of mRNA Banned By The New England Journal of Medicine (Hope)

Today, a new level of totalitarianism was reached when Dr. Robert Malone was banned from reading the New England Journal of Medicine. We are accustomed to censorship by YouTube, Twitter, and Facebook; we are accustomed to professionals getting fired for not submitting to vaccination, but this feels different. Dr. Robert Malone discovered in-vitro and in-vivo RNA transfection and invented mRNA platform technology while he was at the Salk Institute in 1988. He is thus, the father of the modern mRNA vaccine technology, and he has spoken out against its recent misuse in the COVID-19 pandemic. Unfortunately, there has been retaliation, more than one would expect in a free society. Here is a level of retribution one would typically find in Russia or China, not in the United States of America. This country used to be the model for free speech.

[..] Now it seems that a recent email from The New England Journal of Medicine has banned Dr. Robert Malone. On October 7, 2021, Dr. Malone reported the following: “For your information, I have now been banned from reading the New England Journal of Medicine. They have blocked my IP address. I wonder how many others have been blocked?” I wonder, was Professor Albert Einstein ever locked out of his office at Princeton? I know that many did not understand the complex equations he wrote, even the sharpest physicists of his day. It was only AFTER real-world experiments such as the total eclipse of the sun in 1919. This eclipse proved his calculation from his Relativity Theory that gravity could bend sunlight. Moreover, it made him a worldwide celebrity.

However, Dr. Malone’s predictions about mRNA vaccine technology have not yet come to pass. When they do, perhaps he too will be accorded the same respect as Einstein. But does the world truly have to await the harsh results? Can’t we be a little bit smarter this time?

“He who pays the piper calls the tune, you know. And if you receive funding from abroad, there are strong reasons to believe you are taking orders from those who pay you.”

• Bellingcat Officially Labelled ‘Foreign Agent’ By Moscow (RT)

The Russian Ministry of Justice has included Netherlands-based digital investigations team Bellingcat in a list of ‘foreign agents’ published on Friday, along with journalists working for US state-run media RFERL and the UK’s BBC. In a statement, officials in Moscow confirmed that the organization, founded by British blogger Eliot Higgins in 2014, was among the outlets handed the designation, along with American-owned online current affairs site MNews. Nine individuals were also labelled ‘foreign agents,’ including employees of the Russian arm of the BBC, RFERL, 7×7 and television channel Dozhd. Dozhd, also known as TV Rain, was given the same status as an organization in August. Bellingcat has won a number of awards, in the West, for investigations into a number of issues, including the downing of Malaysia Airlines Flight 17 over the east of Ukraine and the alleged poisoning of jailed opposition figure Alexey Navalny.

However, Russian officials insist that the group maintains close ties to Western spy agencies and receives confidential information to form the basis of its revelations. Russia’s foreign intelligence chief Sergey Naryshkin said in August that Bellingcat “is needed to exert pressure either on the country, or on individuals and legal entities.” Bellingcat is funded by the US government, through the National Endowment for Democracy, and reportedly maintains financial ties to the British and Dutch governments, alleging that it reserves its harshest criticism for politically convenient opponents of those nations, most prominently Russia. Others have also claimed that confidential information used by the group as part of their investigations had likely been passed on by Western intelligence agencies in order to publish their narrative without their direct involvement. Bellingcat denies these charges and maintains that it is independent.

Groups handed the ‘foreign agent’ designation are required to include it prominently in their published materials when operating in Russia. Bellingcat, however, has little if any footprint within the country, working through affiliated organizations. While there has been an outcry in recent weeks over a sharp increase in the number of groups and media outlets branded with the status, the Russian government insists that it is a proportionate response to attempts to interfere in the country’s domestic affairs. “If you get money from abroad to partake in domestic political activities – say so explicitly,” Russian President Vladimir Putin has said. “He who pays the piper calls the tune, you know. And if you receive funding from abroad, there are strong reasons to believe you are taking orders from those who pay you.”

“..within the framework of the existing contracts..”

• Russia Is Not To Blame For Soaring Gas Prices – Merkel (RT)

German Chancellor Angela Merkel has rejected suggestions that the increased price of gas is due to Russian policy. Instead she has pointed the finger at the EU’s own approach asking whether the bloc could have acted differently. Speaking on Wednesday, Merkel noted that Russia has never refused to deliver gas and has fulfilled its contractual obligations. “That’s why we should ask the question: was enough gas ordered, or is the high price at the moment maybe the reason for not ordering so much?” Merkel asked, according to London’s Financial Times. The European Union has sought to move gas trading to the spot market in recent years, whereas Russia has consistently preferred long-term contracts, often as long as 25 years.

Russian President Vladimir Putin has pointed at the reluctance of the bloc to sign longer deals as a cause for rising prices. The view of outgoing Chancellor Merkel was also reflected on Wednesday by Kremlin spokesman Dmitry Peskov, who recalled that Russian gas corporation Gazprom is pumping as much gas as it can “within the framework of the existing contracts,” insisting that Moscow is playing no role in the raised prices. In September, a group of around 40 members of the European Parliament called on the EU to investigate Gazprom, alleging that it was abusing its dominant position on the market by deliberately pushing the value up. It was suggested that Moscow is intentionally limiting gas supplies to Europe as a means to speed the launch of the controversial pipeline Nord Stream 2, which was recently completed.

Is this what they call “woke”?

• Tesla Move Came After California Legislator Tweeted ‘f-k Elon Musk’ (SFGate)

Tesla CEO Elon Musk confirmed Friday that his company’s move to Texas was, in part, inspired by a California lawmaker’s incendiary tweet to him. The tweet in question? “F—k Elon Musk,” from progressive California Assemblywoman Lorena S. Gonzalez. Musk’s confirmation came in response to a fawning Tesla blog post, claiming that “Musk selflessly tried to resist the actions of the government” by reopening a Fremont factory in violation of Alameda County’s COVID-19 precautions in 2020. For context, Musk sued the county over the stay-at-home order that shut down the company’s factory, and dropped the suit 11 days later.

The Tesla fan blog — headlined “Tesla Moved its HQ to Texas Following Explicit Offer from California Assemblywoman” — calls out Gonzalez for tweeting out an expletive to Musk, saying the tweet “indicates serious problems in the apparatus of the state.” Musk tweeted, in response to the article and its headline, “Exactly.” Gonzalez was nonplussed, tweeting that the CEO “makes too much of his money from taxpayer subsidies in CA to pull out.” This comment is in reference to the fact that Tesla will keep its California factories. “And, yes, he’s still awful,” she added on Twitter. “Worth $200 billion & left his janitors hanging during the pandemic.” She later tweeted screenshots of her being harassed on Twitter and Instagram by Tesla enthusiasts.

Support the Automatic Earth in virustime; donate with Paypal, Bitcoin and Patreon.

Debt Rattle June 14 2021

Jun 142021

June 14, 2021 Posted by Raúl Ilargi Meijer at 8:28 am Finance Tagged with: Biden, bitcoin, child vaccination, long covid, Musk, obesity, Putin, spike protein, Tesla, Wuhan 110 Responses »

Vittorio Matteo Corcos Sogni (Dreams) 1896

• 79% Of Democrats Support Employers Forcing Workers To Get Covid-19 Jabs (RT)

• ‘Pretty Safe’ Jab Will Protect Kids From Variant (ST)

• CDC Claims Covid-19 Kills ‘Healthy Young Children’ (JTN)

• The Killer in the Bloodstream: the “Spike Protein” (Whitney)

• UK Lockdown End To Be Delayed (Pol.eu)

• MP Warns Brits ‘Have To Learn To Live With Covid’ For ‘Rest Of Time’ (RT)

• Why Is Britain Now The Capital Of Long Covid? (T.)

• Wisconsin Top Court: Health Agency Lacks Power To Close Schools Over Covid (JTN)

• Too Fat To Fly: FAA Updates Guidelines As American Obesity Crisis Grows (Fed.)

• Biden Calls For Access To Wuhan Labs (RT)

• Biden-Putin: What’s On The Table (ZH)

• “Tesla Only Sold ~10%” Of Its Bitcoin Holdings: Musk Speaks, Bitcoin Moves (WS)

Look how young these inoculated kids are! 236 injuries and fatalities from vaccines in the 0-1 month old group!

Eric Clapton doesn’t agree

"You get caught in a trap: can you believe what your heart tells you is right, or is it going against the narrative?" Deep reflections by an artist with a strong intuition and a pure heart. Much love from TEAM REALITY, Eric! ❤️ 3/3 pic.twitter.com/AORnmw5PdG

— Wake Up From COVID (@wakeupfromcovid) June 13, 2021

And that makes it alright?

• 79% Of Democrats Support Employers Forcing Workers To Get Covid-19 Jabs (RT)

A new poll shows that Democrats and Republicans are just about as divided on an employee’s right to choose whether to get vaccinated against Covid-19 as they are on a woman’s right to choose whether to abort her unborn child. Nearly 80% of Democrats agreed that employers should be able to force their workers to get Covid-19 shots, according to a CBS News-YouGov poll released on Sunday. In contrast, only 39% of Republicans approved of giving businesses such authority over their employees’ medical choices. The overall response was 56-44 in favor of forced jabs. Supporters of the two major parties are more split on vaccine choice than on Covid-19 inoculation in general. While 95% of Democrats have already been vaccinated or are at least considering it, 71% of Republicans are on board or thinking about taking the jab, the poll showed.

That result suggests some improvement in vaccine acceptance in the past two months. A Monmouth University poll released in mid-April indicated that 43% of Republicans don’t intend to get vaccinated against the virus. In the CBS News-YouGov survey, 29% of Republicans said they had ruled out the shots. Overall, only 18% of respondents said they won’t get vaccinated, while 71% said they had either already gotten a jab or planned to do so. The other 11% were undecided. The issue of employer-mandated vaccination is heating up, as a Texas judge on Saturday issued the nation’s first federal court ruling on whether workers can be ordered to receive Covid-19 shots.

“Pretty” safe? Is that a slip of the tongue, or is it a warning?

• ‘Pretty Safe’ Jab Will Protect Kids From Variant (ST)

A scientist advising the government has declared that there is now a “very strong argument” to vaccinate children against the coronavirus as infections rise and evidence emerges that vaccination is “pretty safe”. Professor Peter Openshaw, vice-chairman of Nervtag, a committee that looks out for emerging respiratory threats, said there were indications that the Indian variant was more transmissible among children than the original Wuhan strain. Openshaw, professor of experimental medicine at Imperial College London, told BBC Radio 4’s Today programme: “It strengthens the argument for extending vaccination to children. I’ve been sitting on the fence on this one, but on balance I’m coming to the view that there’s a very strong argument we should go there.

“Evidence has come out about the safety and efficacy of generating an antibody response in children. It looks like it is pretty safe and there are no adverse signals.” Coronavirus testing in secondary schools has collapsed in recent weeks, according to NHS Test and Trace. Nearly two thirds of secondary school pupils failed to take a test in the week before half-term. Data from Public Health England shows 282 Covid-19 outbreaks in schools in the past four weeks, compared with 88 in the previous four weeks.

“In reviewing the medical literature and news reports, and in talking to pediatricians across the country, I am not aware of a single healthy child in the U.S. who has died of COVID-19 to date..”

• CDC Claims Covid-19 Kills ‘Healthy Young Children’ (JTN)

The Centers for Disease Control and Prevention now claims that “healthy young children” can die from COVID-19. Marty Makary wants to see the evidence. “In reviewing the medical literature and news reports, and in talking to pediatricians across the country, I am not aware of a single healthy child in the U.S. who has died of COVID-19 to date,” the Johns Hopkins University professor of medicine and public health said Thursday. Archived versions of the CDC’s web page comparing COVID-19 and seasonal influenza show that it revised the “differences” in the section “People at High-Risk for Severe Illness” sometime between May 31 and June 8.

“The risk of complications for healthy children is higher for flu compared to COVID-19,” the earlier version says. “However, infants and children with underlying medical conditions are at increased risk for both flu and COVID-19.” The new version flips the emphasis as well as adding a new claim. “Overall, COVID-19 seems to cause more serious illnesses in some people,” it begins. “For young children, especially children younger than 5 years old, the risk of serious complications is higher for flu compared with COVID-19. However, serious COVID-19 illness resulting in hospitalization and death can occur even in healthy young children.”

Makary’s article in MedPage Today, a clinical news publisher where he serves as editor in chief, pushes back on calls to vaccinate kids ages 0 to 12 without comorbidities. He also recommends parents avoid vaccinating children who have recovered from COVID-19 infections, continuing his argument that natural immunity is just as good if not better than vaccine immunity. “The case to vaccinate kids is there, but it’s not compelling right now,” Makary wrote. He’s part of a movement of doctors at medical institutions around the world calling for far more cost-benefit analysis of COVID-19 vaccines for low-risk populations such as children.

“..the spike protein is deadly even absent the virus. ..”

• The Killer in the Bloodstream: the “Spike Protein” (Whitney)

The Spike Protein is a “uniquely dangerous” transmembrane fusion protein that is an integral part of the SARS-CoV-2 virus. “The S protein plays a crucial role in penetrating host cells and initiating infection.” It also damages the cells in the lining of the blood vessel walls which leads to blood clots, bleeding, massive inflammation and death. To say that the spike protein is merely “dangerous”, is a vast understatement. It is a potentially-lethal pathogen that has already killed tens of thousands of people. So, why did the vaccine manufacturers settle on the spike protein as an antigen that would induce an immune response in the body? That’s the million-dollar question, after all, for all practical purposes, the spike protein is a poison. We know that now due to research that was conducted at the Salk Institute. Here’s a summary of what they found:

“Salk researchers and collaborators show how the protein damages cells, confirming COVID-19 as a primarily vascular disease…. SARS-CoV-2 virus damages and attacks the vascular system (aka–The circulatory system) on a cellular level… scientists studying other coronaviruses have long suspected that the spike protein contributed to damaging vascular endothelial cells, but this is the first time the process has been documented…. … the spike protein alone was enough to cause disease. Tissue samples showed inflammation in endothelial cells lining the pulmonary artery walls. The team then replicated this process in the lab, exposing healthy endothelial cells (which line arteries) to the spike protein. They showed that the spike protein damaged the cells by binding ACE2…“If you remove the replicating capabilities of the virus, it still has a major damaging effect on the vascular cells, simply by virtue of its ability to bind to this ACE2 receptor, the S protein receptor, now famous thanks to COVID.”

Remember how everyone laughed at Trump when he said injecting household bleach would cure Covid? How is this any different? It’s not different, and whatever modest protection the vaccines provide as far as immunity, it pales in comparison to the risks they pose to personal health and survival. And did you notice what the author said about stripping-out the virus and leaving the spike protein alone?’ He said “it still has a major damaging effect” implying ‘blood clots, bleeding and severe inflammation.’ In other words, the spike protein is deadly even absent the virus. Here’s how Dr. Byram Bridle (who is a viral immunologist and associate professor at University of Guelph, Ontario) summed it up:

“We made a big mistake. We didn’t realize it until now… We thought the spike protein was a great target antigen, we never knew the spike protein itself was a toxin and was a pathogenic protein. So, by vaccinating people we are inadvertently inoculating them with a toxin.” Think about that for a minute. This is a very big deal, in fact, this is the critical piece of the puzzle that has been missing for the last 15 months. Just as the respiratory virus concealed the real killing-agent in Covid, (the spike protein) so too, the relentless hype surrounding mass-vaccination has concealed the glaring problem with the vaccines themselves, which is, they generate a substance that is “capable of causing disease.”

How bad will the backlash be?

• UK Lockdown End To Be Delayed (Pol.eu)

The U.K.’s final lifting of lockdown restrictions on June 21 is expected to be pushed back by Prime Minister Boris Johnson at a press conference on Monday evening, a government official confirmed to London Playbook. Multiple outlets report that Johnson, alongside cabinet members Rishi Sunak, Michael Gove and Matt Hancock have signed off on a month-long delay, after scientific advisers urged the prime minister to allow enough time for more people to get fully vaccinated. On Friday, The Sun reported that July 19 would be proposed as the new “Freedom Day” of lockdown end, with a review of numbers on July 5 that could see some or all restrictions lifted early.

“The prime minister sees this as the final stretch and wants people to be patient. We are nearly there, it’s one last haul,” a government source told The Times. The rules currently in place that will be kept include the wearing of face masks and limits on indoor and outdoor gatherings. The reopening of nightclubs is also set to be delayed. On the other hand, according to the Financial Times, some allowances may be made for weddings, allowing for larger gatherings as is the case for funerals. Health minister Edward Argar told Sky News on Monday that weddings and those who plan to wed “will be very much in [Johnson’s] mind at the moment.”

Despite reports that Sunak is not planning to extend the furlough scheme to support businesses, Argar said Johnson is “very mindful of the need for businesses and others to get what they need if they continue to be locked down.” On Sunday, 7,490 new COVID cases were reported in the U.K., a considerable increase from 5,341 a week before, on June 6.

“If our very effective vaccines cannot deliver us freedom from restrictions, then nothing ever will.”

• MP Warns Brits ‘Have To Learn To Live With Covid’ For ‘Rest Of Time’ (RT)

Covid Recovery Group chairman and MP Mark Harper opposes delays in the lifting of Covid-19 restrictions, arguing Brits will “have to learn to live with” the virus now that the vulnerable are jabbed, or suffer constant lockdown. Harper took to Twitter after an article on Sunday in the Telegraph citing an unnamed minister claimed the planned lockdown-easing date of June 21 could be delayed until as late as next spring due to the government’s concern about the spread of Covid-19 variants. The Forest of Dean MP warned in response that it “would be devastating for business confidence, people’s livelihoods and wellbeing” if the reopening were delayed, and would send “a clear message to employers and workers that, when Covid cases increase this (and every) autumn and winter, they cannot rely on Govt to keep our society open.”

“Now that the most vulnerable have been protected with their vaccine doses, we have to learn to live with this virus, rather than endure seasonal on-off lockdowns and restrictions,” Harper argued, noting that Chief Scientific Adviser Patrick Vallance has warned that coronavirus mutations “will appear for the rest of time.” Harper also pointed out that the most vulnerable people in the UK – who account for 99% of Covid-19 deaths and 80% of hospitalisations – will all have been offered two vaccine jabs by June 21, making it safer than ever to reopen. “We have to learn to live with it,” concluded Harper. “If our very effective vaccines cannot deliver us freedom from restrictions, then nothing ever will.”

“Many of these patients don’t really believe mental illness will explain their symptoms. They want something tangible, something external like the virus.”

• Why Is Britain Now The Capital Of Long Covid? (T.)

In April, the NHS chief executive Sir Simon Stevens promised to have 83 long Covid clinics open by the end of the month. The Office for National Statistics has estimated that more than 1 million people in Britain have suffered from long Covid. Danny Altmann, a professor of immunology at Imperial College, London, has predicted that long Covid could represent a long-term burden on the NHS comparable to arthritis, which costs the service an estimated £10 billion a year, some 8 per cent of the health budget. Altmann estimates that as many as 20 per cent of Covid sufferers could have longer symptoms; many of them will be younger patients who didn’t initially face severe illness.

It seems Britain is the long Covid capital of the world. This became immediately apparent to me upon moving back here from the US last month. American media has led much of the discussion on long Covid, but fear of the syndrome hasn’t penetrated public sentiment the way it has in Britain, where many young people are terrified of getting the virus not because they fear it will kill them, but because of the potentially debilitating after-effects. The question is why? Is there more long Covid here? And if so, for what reason? Are we simply doing a better job of diagnosing and discussing it, much as we lead the world in using genomic sequencing to find new Covid variants? Or might there be other cultural and societal factors underpinning our pervasive long Covid issue?

The answer could well be some combination of the above. The difficulty in researching long Covid is that every expert that you ask gives you a slightly different answer as to what the illness is and what causes it. “The simple answer is I don’t know [what causes this] and nor does anybody else,” says Dr Paul Harrison, head of Oxford University’s Translational Neurobiology Group. “We have to start with ‘nobody knows’ and keep that uncertainty — and therefore open-mindedness — at the forefront of our approach.” [..] “It’s psychosomatic,” says Jeremy Devine, a resident psychiatrist at McMaster University in Ontario, Canada. In March, he wrote a controversial column for The Wall Street Journal, arguing that long Covid was being incorrectly used as a catch-all for a whole host of ailments and issues, many of them psychological. There was a fierce backlash, with several UK-based patient groups writing furious letters to his supervisors.

“People do not like psychological explanations for physical symptoms,” he says. “They want something that’s perceived as real. Many of these patients don’t really believe mental illness will explain their symptoms. They want something tangible, something external like the virus.”

“What is reasonable and necessary cannot be reasonably read to encompass anything and everything.”

• Wisconsin Top Court: Health Agency Lacks Power To Close Schools Over Covid (JTN)

The Wisconsin Supreme Court has ruled against the city of Madison’s public health agency in a dispute over the power to close schools during the pandemic. A top city health official decried Friday’s decision, saying it would put children at risk. “The Wisconsin Supreme Court ruled that local health officers cannot close schools within their jurisdictions. We are extremely disappointed in the court’s decision, which has much further reaching implications than just this current pandemic,” health director Janel Heinrich said.. “This decision hinders the ability of local health officers in Wisconsin to prevent and contain public health threats for decades to come.”

The Wisconsin Institute for Law and Liberty brought the case. WILL argued that Public Health Madison & Dane County overstepped its bounds by unilaterally ordering all schools, public and private, to close. WILL also argued the order infringed on parents’ rights to decide about their children’s education. Justice Rebecca Bradley wrote the majority opinion, saying Heinrich’s office had relied on an over-generalized reading of state law. “The power to take measures ‘reasonable and necessary’ cannot be reasonably read as an open-ended grant of authority,” Bradley wrote. “If Heinrich’s argument were correct, then the general provision would essentially afford local health officers any powers necessary to limit the spread of communicable diseases. This cannot be. What is reasonable and necessary cannot be reasonably read to encompass anything and everything.”

One of the main causes of disease and death, also for Covid, and nothing is done about it whatsoever.

• Too Fat To Fly: FAA Updates Guidelines As American Obesity Crisis Grows (Fed.)

The Federal Aviation Administration (FAA) is demanding U.S. airlines submit plans with updated weight averages they will use for passengers and baggage moving forward by Saturday. According to the Wall Street Journal, “Airlines officials say the weight estimates used for passengers and baggage are going up between 5 percent and 10 percent.” “That will affect some flights, possibly requiring that more passengers get bumped or more baggage left behind,” the Journal reported. The new guidelines, and likely travel disruptions to come with them, are yet another symptom of American weight gain with no signs of abatement.

While the novel coronavirus — a virus exacerbated by excessive weight where 78 percent of those hospitalized with infection were overweight or obese — should have served as a wake-up call to the decades-long obesity crisis, Americans instead packed on the pounds with apparently little concern. According to a global Ipsos poll in January, two in five Americans reported gaining weight throughout the lockdowns still in place at the time. Those surveyed said they put on an average of more than 14 pounds, putting the U.S. seventh out of 30 countries in terms of pandemic weight gain. Most Americans appeared relatively unbothered by the weight. Less than half said they believed there was a link between obesity and complications from COVID-19 which data determined early on was a major risk contributor.

“Since the pandemic began,” Science Magazine reported in September, “dozens of studies have reported that many of the sickest COVID-19 patients have been people with obesity.” Overweight patients in one study published in August cited by the flagship journal were 113 percent more likely to be hospitalized with COVID-19 compared to patients of an otherwise healthy weight. Obese patients were found 74 percent more likely to end up in intensive care units (ICU) and 48 percent more likely to die. Pre-pandemic, more than 70 percent of adults 20 years old and older were already overweight with 42 percent categorically “obese” according to the CDC.

Never has rhetoric been more empty.

• Biden Calls For Access To Wuhan Labs (RT)

US President Joe Biden revealed on Sunday that he and other leaders in the G7 spoke about gaining access to the laboratories in Wuhan, China to determine whether Covid-19 was the result of a Chinese experiment gone wrong. During a press conference at the G7 conference in Cornwall, England on Sunday, Biden called on China to start acting “more responsibly in terms of international norms on human rights and transparency.” The president then revealed that one of the concerns he and other leaders at G7 had raised was that “we haven’t had access to the laboratories to determine whether or not” Covid-19 was the result of bats in Chinese marketplaces “interfacing with animals and the environment,” or “an experiment gone awry in a laboratory.”

“I have not reached a conclusion because our intelligence community is not certain yet,” Biden said, adding, however, that it was “important to know the answer” so the international community could predict and prevent another pandemic from happening in the future. “The world has to have access,” he argued, concluding that he and other leaders were trying to figure out a way to gain transparency. Former president Donald Trump has repeatedly argued that Covid-19 came from a Wuhan laboratory, and told podcast host Dan Bongino last month that he had “very, very little doubt” the virus originated from the Wuhan Institute of Virology. In a statement on Thursday, he demanded that China pay $10 trillion in “reparations” to the world for “what they allowed to happen.”

Biden is outclassed 1000x. He comes with nothing.

• Biden-Putin: What’s On The Table (ZH)

There is a lot of optimism and big press regarding the upcoming meeting between Biden and Putin. This will be the first meeting of the two since Biden took that seat behind the lovely desk in the Oval Office. There are many issues on the table for discussion and there is tension and excitement in the political press in both the West and especially in Russia. There is a growing belief that this could be a turning point or at least provide some small nudging of relations in a positive direction. This wishful thinking, although pleasant from a moral standpoint, does not reflect the realities of the current divide between the United States and Russia. This meeting simply cannot provide some sort of new start for relations between the countries and will probably look like a head-nodding and pretending-to-listen fest the likes of which we have never seen before.

Hours worth of hot air will be blown to throw words onto deaf ears with some background posturing to boot. One reason for the Russians to be suspicious of any offers from Washington is simply recent precedent. Over ten years ago when Obama was still full of Hope and Change his feisty new Secretary of State Hillary Clinton with a great big smile presented Foreign Minister Lavrov the infamous Russian Reset Button. The red button had the word “overload” accidentally written on it in place of “reset”. This mistake due to a fake desire to make it seem like Washington cared enough to learn one word of Russian was very telling as during the brief era of the Russian Reset, America’s Soft Power machine was working day and night to organize the Maidan in Kiev.

From a Western perspective this revolution was another piece of evidence that the people of Eastern Europe want nothing to do with naughty Moscow, but from a Russian perspective the Maidan was the beginning of an endless waking nightmare. This all led to the genocidal war in the Donbass breaking out, the return of Neo-Nazism to Europe, and the now official systemic racism that Russian speakers have to endure in the “Zimbabwe of Europe”. After an experience like that, can one really expect any sort of optimism from the Russian side because Biden sort of stepped back a bit on the whole Nord-Stream 2 thing?

“But Musk walks on water, and he can assert anything, no problem.”

• “Tesla Only Sold ~10%” Of Its Bitcoin Holdings: Musk Speaks, Bitcoin Moves (WS)

Why can’t this dude just shut up? That’s what people, including the SEC, want to know. But look, he just can’t. Apparently, no one can take his Twitter account away from Elon Musk, and Tesla isn’t putting it under adult supervision, as the SEC has suggested. So he was at it again today, responding to accusations by Magda Wierzycka, CEO of South African tech and financial services firm Sygnia, that he’d pumped up the price of Bitcoin by tweeting all manner of things, and then “sold a big part of his exposure at the peak.” So yes. Musk acknowledged in his tweet today that Tesla had in fact dumped part of its holdings of Bitcoin, but he argued that it wasn’t a big part, that it had “only sold ~10%” of its Bitcoin holdings.

And he came up with a rationalization why Tesla had dumped 10% of its Bitcoin holdings: “to confirm BTC could be liquidated easily without moving market.” That was a joke apparently. Over the past two months, the price of Bitcoin plunged from about $64,800 to around $33,000 at the low and now hovers at $39,000, after the current Musk-induced spike, with the plunge leaving a big-fat question market over his assertion that Bitcoin could be “liquidated easily without moving market.” But Musk walks on water, and he can assert anything, no problem. The second part of Musk’s tweet contained an effort to pump up the price of BTC by walking back his assertion in May that Tesla would no longer allow customers to pay for vehicles with Bitcoin because of the carbon footprint of Bitcoin mining, which was another one of his Bitcoin 180s.

At the time, that statement had whacked the price of Bitcoin. Bitcoin mining is of course the fiat-currency equivalent of “money printing.” But money printing has a tiny carbon footprint, because it needs just enough electricity to move credits by computer and the internet. You don’t need huge arrays of special mining rigs with special power supply and cooling equipment to print money. So today he tried to walk back his carbon-foot print concern, by tweeting: “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, you are now not just a reader, but an integral part of the process that builds this site. Thank you for your support.

Support the Automatic Earth in virustime. Click at the top of the sidebars to donate with Paypal and Patreon.

Debt Rattle May 12 2020

May 122020

May 12, 2020 Posted by Raúl Ilargi Meijer at 11:17 am Finance Tagged with: Bill Barr, bitcoin, BoJ, coronavirus, Covid19, forbearance, Gowdy, meat exports, Mexico, Musk, Obama, Tesla, unemployment, Wuhan 16 Responses »

Edward Hopper Night in the park 1921

• Letter from Hong Kong to Covid Ravaged UK: What On Earth Are You Doing? (HKFP)

• 14 Million Wuhan Residents To Be Tested For COVID19 In 10 Days (SCMP)

• As US Meat Workers Fall Sick And Supplies Dwindle, Exports To China Soar (R.)

• Mexican Border Town Uses ‘Sanitizing Tunnels’ To Disinfect US Visitors (G.)

• Tesla’s Musk Says Ready For Arrest As He Reopens California Plant (R.)

• The Sum of All Broken Promises (Kunstler) ;

• Record Unemployment Drives Forbearances Up (NMN)

• The Bailout Is Working — for the Rich (Eisinger)

• Bitcoin Goes Through Third ‘Halving’ (R.)

• BOJ Will Do ‘Whatever It Can’ To Combat Pandemic Fallout: Kuroda (R.)

• Trump And Biden Trade Anti-China Ads (IC)

• Jan 5 Oval Office Meeting Key To Entire Anti-Trump Operation (Hemingway)

• List Of Obama Officials Involved In Unmasking Declassified (SAC)

• Another Former Obama Official Contradicts Her Public Statements (Turley)

• 2,000 Former DOJ, FBI Officials Demand Barr Resign Over Flynn Case (UPI)

• US registers less than 900 #coronavirus deaths in 24-hours for second day

• US records 830 #coronavirus deaths in the past 24 hours, bringing the total to 80,352, according to Johns Hopkins University. The figure followed Sunday’s toll of 776, the lowest daily tally since March,

US has a very good day, yesterday 19,710 new cases, lowest in many weeks. Today even lower, 18,196, closed.

NY, NJ, MA decreased by 1/3 compared to last week. MA is only 669 today. pic.twitter.com/tppx7bWrAt

— Yaneer Bar-Yam (@yaneerbaryam) May 12, 2020

• Cases 4,273,104 (+ 72,174 from yesterday’s 4,200,957)

• Deaths 287,621 (+ 3,471 from yesterday’s 284,150)

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

From Worldometer

From SCMP:

From COVID19Info.live:

“At the moment the number of deaths in Hong Kong [..] is four. Not 4,000, not 400, not 40. Four, as in number of gospel writers.”

• Letter from Hong Kong to Covid Ravaged UK: What On Earth Are You Doing? (HKFP)

Five years ago I passed a landmark of no significance to anyone else but me: I had spent more than half of my life in Hong Kong. But I still wish you well. [..] And I need to ask, from one crowded island to another, what the hell have you been getting up to. My Facebook feed is bulging with lockdown stories. And it is horrifying to read the news that total deaths from Covid 19 in your place have passed, at the time of writing, 30,000. It seemed to me entirely irrelevant that, the week before, the total casualty toll had passed the tally of British Army deaths on the first day of the Battle of the Somme. When two highly industrialised nations put hundreds of thousands of young men in a field with instructions to kill each other you expect the blood to flow.

But we are all, give or take a few civil wars a safe distance away, at peace at the moment. And the excuse that this massacre is all inevitable, the result of a medical problem which nobody could have foreseen and for which there was no immediate remedy, doesn’t wash because the consequences have been so variable. I understand it is too early to say whether the UK will achieve the unwanted distinction of the highest death rate in Europe. But why is it even in the running for this title? At the moment the number of deaths in Hong Kong, whose government enjoys neither democratic legitimacy nor a reputation for unusual efficiency, is four. Not 4,000, not 400, not 40. Four, as in number of gospel writers.

This is in a territory with a land border to the mainland, where it all started. So we had less warning and more opportunities for imported infections. Taiwan and Thailand, similarly disadvantaged, have also managed strikingly low numbers, and Viet Nam claims to have no cases at all. [..] There is an interesting irony here, at least for the moment. It seems your government is not getting the blame it has richly earned. Ours, which has had a good epidemic so far, is not getting much credit. Partly, this is because of events in the year before the arrival of the new disease. Our Chief Executive has trodden in too many political cowpats to have a shot at the Hong Kong’s sweetheart title, whatever she does about viruses.

It is also partly because the government was propelled towards some precautions, like closing the border, by public agitation. But I think the main reason is because Hong Kong people, while they do not trust the words of their government, and still less those of the government over the boundary on the mainland, did not need to be persuaded to take the whole matter seriously. This made a big difference. Why so serious? We participated extensively in the SARS epidemic in 2003, still fresh in many memories. Indeed I imagine many households, like mine, still had a box of face masks which were tucked away when that epidemic subsided. Hygiene was already a thing.

In countries that have not seen a real epidemic since the Spanish flu in 1918 this awareness would of course be absent. But this is where, in a democratic society with a literate population and free media, public information should have come in. Instead governments dithered, at best, or denied there was a problem, at worst. I do not allow the defence that they were relying on scientific opinion. This is a contradiction in terms. Science, in its slow, tentative way, produces factual observations. The opinions of scientists about matters on which science has not yet determined the facts are not scientific. They are just opinions. You may think they are expert opinions, but expert opinions about the future (see the works of Philip Tetlock) are lamentably unreliable.

I suggest we call this a test drive.

We can only wish the west would be as thorough. China understands Crush the Curve. It just took them a fateful 5-6 weeks too long to figure it out.

• 14 Million Wuhan Residents To Be Tested For COVID19 In 10 Days (SCMP)

Authorities in the central Chinese city of Wuhan, where the pandemic coronavirus was first detected, have ordered fresh Covid-19 tests for all of its 14 million residents after a cluster of new community cases. The Wuhan Covid-19 Epidemic Prevention Headquarters ordered all districts in the city to come up with plans for a 10-day barrage of nucleic tests and submit the plans by noon on Tuesday. The tests should cover both permanent residents and mobile populations, and target residential estates and densely populated areas, the headquarters said in the orders. The unprecedented move came after reports on the weekend of six new coronavirus cases from the same residential compound, known as Sanmin.

The cases were the first in the city since its last local Covid-19 patient was reported on April 3. One Sanmin resident, an 89-year-old man, showed symptoms as early as March but was not confirmed as a coronavirus patient until Saturday. The confirmation prompted authorities to test around 5,000 people from the complex, uncovering five more cases. Zhang Yuxin, who had been serving as the Communist Party secretary in charge of the Sanmin area, was sacked for poor management, state media reported on Monday. A Chinese professor of epidemiology, who declined to be named because he was not authorised to speak to the media, said large-scale testing was needed to prevent a new wave of infections.

“The new cases in Wuhan show there is a real risk of a second wave of potential transmission in the community by the asymptomatic carriers or mild symptoms. Covid-19 started with a few after all,” he said. “Tests on such a broad scale can help find these hidden carriers and eliminate that risk.”

If so many people get infected in meat plants, there appears to be a serious hygiene problem right where your food comes from, and maybe the entire industry should be revised.

Q: what are the similarities between meat plants and care homes, other then they’re all virus clusters?

• As US Meat Workers Fall Sick And Supplies Dwindle, Exports To China Soar (R.)

U.S. President Donald Trump ordered meat processing plants to stay open to protect the nation’s food supply even as workers got sick and died. Yet the plants have increasingly been exporting to China while U.S. consumers face shortages, a Reuters analysis of government data showed. Trump, who is in an acrimonious public dispute with Beijing over its handling of the coronavirus outbreak, invoked the 1950 Defense Production Act on April 28 to keep plants open. Now he is facing criticism from some lawmakers, consumers and plant employees for putting workers at risk in part to help ensure China’s meat supply.

Meat buyers in China ramped up imports from around the world as a pig disease decimated its herd, the world’s largest, and pushed Chinese pork prices to record highs. The supply shock drove China to pay more for U.S. meat than other countries, and even U.S. consumers, since late 2019. “We know that over time exports are critically important. I think we need to focus on meeting domestic demand at this point,” said Mike Naig, the agriculture secretary in the top U.S. pork-producing state of Iowa who supported Trump’s order. Processors including Smithfield Foods, owned by China’s WH Group Ltd, Brazilian-owned JBS USA and Tyson Foods Inc temporarily closed about 20 U.S. meat plants as the virus infected thousands of employees, prompting meatpackers and grocers to warn of shortages.

Some plants have resumed limited operations as workers afraid of getting sick stay home. The disruptions mean consumers could see 30% less meat in supermarkets by the end of May, at prices 20% higher than last year, according to Will Sawyer, lead economist at agricultural lender CoBank. While pork supplies tightened as the number of pigs slaughtered each day plunged by about 40% since mid-March, shipments of American pork to China more than quadrupled over the same period, according to U.S. Department of Agriculture data.

Makes me think of how the Japanese 500 years ago called westerners dirty pigs.

• Mexican Border Town Uses ‘Sanitizing Tunnels’ To Disinfect US Visitors (G.)

Fears of foreigners bringing infectious disease into the country. Enhanced border checkpoints. And the use of disinfectant spray to sanitize human beings. These aren’t notes from one of Donald Trump’s freewheeling press conferences. The United States’ troubled response to the coronavirus pandemic is such that the Mexican border city of Nogales, Sonora, has set up “sanitizing tunnels” to disinfect people leaving the US through Nogales, Arizona. On the Mexican side of two major border crossings, drivers coming from Arizona must exit their vehicles and step into an inflatable tunnel that sprays them with a cleansing solution.

Videos posted to social media by the municipal government of Nogales, Sonora, show people rotate under the vapor, stretch their arms and lean over to allow the disinfectant to reach their entire bodies. In a press release, the Nogales government states that the cleansing solution is biodegradable and protects from “any virus or bacteria, including Covid-19” for up to 24 hours. It adds that the tunnels “reduce the chances that a foreign citizen or citizen of this city who presents symptoms of the disease will infect other people on the Mexican side”.

The border city’s mayor has told Mexican news outlets that a majority of the people who have tested positive for Covid-19 in Nogales, Sonora, had recently returned from the US. The Mexican border city plans to install five sanitizing tunnels to disinfect people arriving through its two main ports of entry from Nogales, Arizona. A sanitizing tunnel is also stationed outside a hospital in Nogales, Sonora, where visitors must brush open or duck through clear plastic curtains to be washed with the disinfectant mist.

https://twitter.com/Underground_RT/status/1259856428145278976

Now talk to the shareholders.

• Tesla’s Musk Says Ready For Arrest As He Reopens California Plant (R.)

Tesla Inc Chief Executive Elon Musk on Monday said production was resuming at the automaker’s sole U.S. vehicle factory, in California, defying an order to stay closed and saying if anyone had to be arrested it should be him. The move comes as states and cities around the United States experiment with ways to safely reopen their economies after the coronavirus outbreak shuttered businesses and forced tens of millions of Americans out of work. Musk over the weekend threatened to leave California for Texas or Nevada over his factory’s closure. His move has highlighted the competition for jobs and ignited a rush to woo the billionaire executive by states that have reopened their economies more quickly in response to encouragement from U.S. President Donald Trump.

In an email on Monday, Tesla referred to an order on Thursday by California’s governor allowing manufacturers to resume operations and said that as of Sunday, previously furloughed employees were back to their regular employment status. “We’re happy to get back to work and have implemented very detailed plans to help you keep safe as you return,” according to the email seen by Reuters and titled “Furlough Has Ended And We Are Back To Work in Production!” Musk in a tweet said production was resuming on Monday, adding that he would join workers on the assembly line. “If anyone is arrested, I ask that it only be me,” he wrote.

[..] Health officials in Alameda County, where the Fremont factory is based, late on Monday said they were aware that Tesla had opened beyond the so-called minimum basic operations allowed during lockdown, and had notified the company it could not operate without a county-approved plan. In a statement, officials said they expected a proposal from Tesla later on Monday and “hope Tesla will likewise comply without further enforcement measures.”

There is a good chance Musk will also have to personally indemnify Tesla for any damage to stockholders for this. Delaware doesn't allow directors and officers to engage in knowing violations of law. https://t.co/WKwA8Qx6si pic.twitter.com/S9Ye2Dd9qk

— Ben Edwards (@BenPEdwards) May 11, 2020

People have been getting so used to dire stories about the economy, they can no longer tell when things are really going south.

• The Sum of All Broken Promises (Kunstler) ;

[..] one reason the markets may not keep chugging is that money is disappearing into the ol’ black hole of extinction even faster than the Fed can enter keystrokes that magically represent new money. The reason: if, in fact, money is loaned into existence, it is defaulted out of existence when the loans are not paid back. After all, that’s what a loan is: money advanced on a promise to be paid back, generally at interest, interest representing the time-value of money, that is, the duration of the loan. Do you have any idea how many loans are not being paid back, and may now never be paid back?

Start with houses. 63 percent of homeowners pay a mortgage (a loan) every month. The national average outstanding mortgage debt is $148,000. Total mortgage debt is $10.3 trillion. Now cars: There are roughly 260 million passenger vehicles registered in America, with upward of 100 million of them bought on loans that are still active, amounting to $1.2 trillion, enough to buy 53 million Ford Fusions at $23,000 each. Now credit card debt: total for the US is $3.9 trillion with an average carried balance of $9,333. Meanwhile, 45 percent of adult Americans have no savings.

[..] Consider that a trillion is a thousand billion (and a billion is a thousand million). In an ordinary reality, a reality-based reality, that is, with reality-based money, that would be a lot of money (and a lot of debt)! It’s hard to project an exact figure, but with over 20 percent of the US work-force idle, with no income, there’s liable to be a lot of debt that’s not being paid back, will never be paid back, and a lot of money headed into extinction. That will translate into a lot of people with no money. Until all that money they owed is finished not being paid back, and the new money that Fed is busy creating, with no relationship to the production of things of value, overcomes the old money that’s finished disappearing. Then Americans will have plenty of money. The catch is that the money will be worthless. Thus, the two ways of going broke: having no money; or having lots of money that’s too worthless to buy anything. So it goes.

Oh well, houses are way overpriced anyway.

• Record Unemployment Drives Forbearances Up (NMN)

The number of mortgages in coronavirus-related forbearance rose by 37 basis points between April 27 and May 3 as the unemployment rate kept growing, according to the Mortgage Bankers Association. Nearly 4 million mortgages sat in forbearance plans as of May 3. About 7.91% of all outstanding loans went into forbearance, compared to 7.54% the week before. The share of loans in forbearance at independent mortgage bank servicers saw a greater increase than the industry-wide average, growing to 7.54% from 7.13% over that period. At depositories, that share increased to 8.75% from 8.41%.

“With the calendar turning to May, the share of loans in forbearance increased, but the pace of the increase and incoming forbearance requests continued to slow,” Mike Fratantoni, the MBA’s senior vice president and chief economist, said in a press release. “The dreadful April jobs report showed a decline of more than 20 million jobs, and a spike in the unemployment rate to the highest level since the Great Depression. It will not be surprising if the forbearance numbers continue to rise.” In April, the largest spike came in the first full week of the month. Some projections show the same could be in store for May. Forbearance requests as a percentage of servicing portfolio volume declined 12 basis points for the week ended May 3 to 0.51 % from 0.63. But call center volume as a percentage of portfolio volume increased to 8.6% from 7.2% the previous week.

That’s the whole idea. But the rich still live in the same country. Let the economy fail and they’re no longer rich.

A bit unreal that the Fed uses the language of MMT.

• The Bailout Is Working — for the Rich (Eisinger)

Ten weeks into the worst crisis in 90 years, the government’s effort to save the economy has been both a spectacular success and a catastrophic failure. The clearest illustration of that came on Friday, when the government reported that 20.5 million people lost their jobs in April. It marked a period of unfathomable pain across the country not seen since the Great Depression. Also on Friday, the stock market rallied. The S&P 500 is now up 30% from its lows in mid-March and back to where it was last October, when the outlook for 2020 corporate earnings looked sunshiny. Companies have sold record amounts of debt in recent weeks for investment-grade companies. Junk bonds, historically dodgy during an economic swoon, have roared back.

If you’re looking for investors’ verdict on who has won the bailout, consider these returns: Shares of Apollo Group, the giant private equity firm, have soared 80% from their lows. The stock of Blackstone, another private equity behemoth, has risen 50%. The reason: Asset holders like Apollo and Blackstone — disproportionately the wealthiest and most influential — have been insured by the world’s most powerful central bank. This largess is boundless and without conditions. “Even if a second wave of outbreaks were to occur,” JPMorgan economists wrote in a celebratory note on Friday, “the Fed has explicitly indicated that there is no dollar limit and no danger of running out of ammunition.”

Many aspects of the coronavirus bailout that assist individuals or small businesses, meanwhile, are short-term or contingent. Aid to small businesses comes with conditions on what they can do with the money. The sums allocated by the CARES Act for stimulus and expanded unemployment insurance are vast by historical standards. But the relief they provide didn’t prevent tens of millions from losing their jobs. The assistance runs out in weeks, and the jobless live at the mercy of a divided Congress, which will decide whether that help gets extended and, if so, for how long.

The Nasdaq has put in six consecutive daily gains of 0.50% or more. The last time we saw such a streak was 17 years ago on 9/4/2003

The Fed props up the stock market, not bitcoin.

• Bitcoin Goes Through Third ‘Halving’ (R.)

Bitcoin slid on Monday in volatile trading, after it went through a technical adjustment that reduced the rate at which new coins are created, but the outlook remained upbeat as the increase in supply slows down. Monday’s “halving” cuts the rewards given to those who “mine” bitcoin to 6.25 new coins from 12.5. The next halving will be in 2024. Bitcoin relies on so-called “mining” computers that validate blocks of transactions by competing to solve mathematical puzzles every 10 minutes. In return, the first to solve the puzzle and clear the transaction is rewarded new bitcoins. In late afternoon trading, bitcoin was last down 1.3% at $8,620.43 against the dollar on the Bitstamp platform. It briefly turned higher.

“The incentive is less for miners now to mine bitcoin and they will probably switch to more profitable cryptocurrencies. So in the short term, there’s going to be pressure for bitcoin,” said Edward Moya, senior market analyst at OANDA in New York. “But longer term, you’re probably going to see higher prices. With all the fiscal and monetary stimulus that’s being pumped into the global economy, there’s renewed interest from institutional traders looking for alternatives to modern government-backed currencies.” Bitcoin has gained more than 20% since the beginning of the year. It touched $10,000 last week, a roughly three-month high, after Bloomberg reported that hedge fund manager Paul Tudor Jones has backed bitcoin as a hedge against inflation.

Traders said the prospect of bitcoin’s halving has fueled gains in the asset this year. Bitcoin two earlier “halvings”— one in November 2012 and the other in July 2016 — had signaled the start of bitcoin’s most dramatic bull runs over a period of several years, although not before a brief sell-off. The previous two bitcoin events propelled rallies of about 10,000% from late 2012 to 2014, and roughly 2,500% from mid-2016 to the currency’s all-time high just shy of $20,000 in December 2017, according to traders.

Kuroda’s been head of the BOJ for over 7 years. The outcome? “Japan’s economy is in an increasingly severe state…”

• BOJ Will Do ‘Whatever It Can’ To Combat Pandemic Fallout: Kuroda (R.)

The Bank of Japan will do “whatever it can” to mitigate the growing fallout from the coronavirus pandemic, Governor Haruhiko Kuroda said on Tuesday, warning that a collapse in global activity has had severe consequences on the the economy. The central bank has various tools at its disposal if it were to ramp up stimulus such as accelerating money printing, increasing market operation tools and cutting interest rates, Kuroda said in a semi-annual testimony to parliament. He signalled that any further steps the BOJ takes will focus on helping cash-strapped firms, rather than stimulating demand. “What’s most important for us is to take steps to smoothen corporate financing and stabilise markets,” Kuroda said.

“We will do whatever we can as a central bank, working closely with the government.” Kuroda ruled out the possibility of adding municipal bonds to the list of assets the BOJ buys, however, saying he saw no need to do so for the time being. The world’s third-largest economy is on the cusp of a deep recession with many analysts projecting a double-digit contraction in the current quarter, as the pandemic forces households to stay home and businesses to shut down. While the government plans to lift the state of emergency for some prefectures that saw infection numbers stabilise, many big cities including Tokyo will likely see current restrictions kept in place at least for the rest of this month.

Kuroda said Japan did not face an imminent risk of a sharp credit contraction, as many financial institutions have sufficient buffers to weather the pain from the pandemic. But he warned the outlook for Japan’s economy was “highly uncertain” and dependent on when the pandemic is contained, with risks skewed to the downside. “Japan’s economy is in an increasingly severe state. The outlook will remain severe for the time being,” he said.

When will Biden start up the anti-Putin ads?

• Trump And Biden Trade Anti-China Ads (IC)

As coronavirus deaths mount, President Donald Trump’s China-bashing has evolved from a short-term political tactic into a full-fledged election strategy. Take the ad “Travel Ban,” which was unveiled last week by pro-Trump Super PAC America First Action. The spot is one of several anti-China ads released by the group over the past few weeks, and it revisits some standard Trump campaign tropes: There are images of Biden from the Obama years, clips of the former vice president stumbling over his words, and allusions to the decades Biden spent in Washington. But the ad, which is part of a larger attempt to dub the presumptive Democratic nominee “Beijing Biden,” reserves its greatest ire for Biden’s purported ties to China, zooming in on a shot of him shaking hands with Chinese leader Xi Jinping.

“China is killing our jobs and now killing our people,” a male voice intones ominously. Instead of taking the high road, the Biden campaign has offered its own version of xenophobic hype. A Biden campaign spot released in mid-April juxtaposes Chinese medical workers in Tyvex suits with lines of Americans waiting to get tested for the virus. “Trump rolled over for the Chinese,” a narrator says. Both ads have angered Asian American activists. The Biden spot in particular has upset people who view him as a potential ally at a time of rising xenophobia.

They worry that even without going to extremes like calling Covid-19 the “Chinese virus” and the “kung-flu” — terms used by Trump and officials in his administration over the past few months — images of Asian faces and offhanded mentions of “the Chinese” are just a slightly subtler form of racist dog-whistling, and harmful at a moment when hate crimes against Asian Americans are on the rise. “There’s a clear link between the rhetoric that’s being used and the increased harm to our community,” said John Yang, president of Asian Americans Advancing Justice-AAJC. “We are equally concerned about both parties. We are concerned that there will be a race to the bottom.”

I don’t think the DOJ will go after Obama, only Sidney Powell would.

• Jan 5 Oval Office Meeting Key To Entire Anti-Trump Operation (Hemingway)

Information released in the Justice Department’s motion to dismiss the case it brought against Lt. Gen. Michael Flynn confirms the significance of a January 5, 2017, meeting at the Obama White House. It was at this meeting that Obama gave guidance to key officials who would be tasked with protecting his administration’s utilization of secretly funded Clinton campaign research, which alleged Trump was involved in a treasonous plot to collude with Russia, from being discovered or stopped by the incoming administration. “President Obama said he wants to be sure that, as we engage with the incoming team, we are mindful to ascertain if there is any reason that we cannot share information fully as it relates to Russia,”

National Security Advisor Susan Rice wrote in an unusual email to herself about the meeting that was also attended by Deputy Attorney General Sally Yates, FBI Director James Comey, and Vice President Joe Biden. A clearer picture is emerging of the drastic steps that were taken to accomplish Obama’s goal in the following weeks and months. Shortly thereafter, high-level operatives began intensely leaking selective information supporting a supposed Russia-Trump conspiracy theory, the incoming National Security Advisor was ambushed, and the incoming Attorney General was forced to recuse himself from oversight of investigations of President Trump. At each major point in the operation, explosive media leaks were a key strategy in the operation to take down Trump.

Not only was information on Russia not fully shared with the incoming Trump team, as Obama directs, the leaks and ambushes made the transition chaotic, scared quality individuals away from working in the administration, made effective governance almost impossible, and materially damaged national security. When Comey was finally fired on May 9, in part for his duplicitousness regarding his handling of the Russia collusion theory, he orchestrated the launch of a Special Counsel probe that continued his efforts for another two years. That probe ended with Mueller finding no evidence of any American colluding with Russia to steal the 2016 election, much less Trump or anyone connected to him.

An analysis of the timeline from early 2017 shows a clear pattern of behavior from the federal officials running the collusion operation against the Trump campaign. It also shows how essential media leaks were to their strategy to sideline key law enforcement and intelligence officials and cripple the ability of the incoming Trump administration to run the country. Here’s a timeline of the key moments and news articles of the efforts, per Obama’s direction, to prevent the Trump administration from learning about the FBI’s operation against it.

OBAMAGATE! pic.twitter.com/pFbb6hgDhF

— Donald J. Trump (@realDonaldTrump) May 12, 2020

Can I get this straight? Susan Rice was Obama’s national security advisor. She unmasked US officials while she was no longer at the job. Even if individuals are unmasked, their identities remain highly classified. But they were leaked in substantial numbers. Which is in turn highly illegal.

Samantha Power was United Nations Ambassador. She also unmasked Trump officials. In fact she made 260 requests for unmasking. Only, she didn’t. Someone else did in her name.

• List Of Obama Officials Involved In Unmasking Declassified (SAC)

In 2017, information published by this reporter and John Solomon, then with Circa, a online news organization under Sinclair Media, exposed that former Obama national security advisor Susan Rice had unmasked a number of U.S. officials connected to then President Donald Trump’s campaign. On Monday night, reports surfaced, first with ABC News and then others, that the acting Director Of National Intelligence Richard Grenell had authorized the declassification of the list of senior Obama officials that had unmasked Americans exponentially in the last months of the Obama administration. A U.S. official familiar with the declassification process confirmed to SaraACarter.com that the list of officials has been declassified and should be made public shortly.

In May, 2019 President Donald Trump authorized the Department of Justice to declassify the list, as well as all the other documentation pertaining to the Foreign Intelligence Surveillance warrant used to spy on short term campaign volunteer Carter Page. Department of Justice Inspector General Michael Horowitz revealed in several recent reports that the FBI and DOJ failed to validate the evidence used to obtain the warrants to spy on Page and omitted evidence that would have stopped the secret court from authorizing the warrant to spy on the campaign. The most egregious unmasking was that of Army Lt. Gen. Michael Flynn, whose prosecution has now been overturned by the Justice Department.

In January, 2017 Flynn’s name and the contents of his conversation with former Russian Ambassador Sergey Kislyak was revealed to a Washington Post reporter by a senior official in the Obama administration. The contents of the conversation were later outed in a column by Washington Post writer David Ignatius. The highly classified information led to the false allegations that Flynn and the Trump campaign were conspiring with Russia. Still, no one has been held accountable for the highly classified leak. However, sources tell this reporter there has been an ongoing DOJ investigation into the matter.

Rice, who hid her role in unmasking Trump officials, eventually admitted that she had requested unmasking of officials in the campaign. However, it was in April, 2017, when Trump White House lawyers were informed that Rice had requested the identities of U.S. persons in the raw intelligence reports. Usually in the raw reports Americans are identified as U.S. Person 1 or U.S. Person 2. Those identities are considered top secret and are limited to only a few persons. Further, there was an abundance of evidence that former United Nations Ambassador Samantha Power, unlike any former U.N. Ambassador before her, was also unmasking American’s identities in these highly classified reports at an extraordinary rate.

Then, in October, 2017, House Oversight & Government Reform Committee Chairman Trey Gowdy revealed that Power had admitted under testimony that not all the “unmaskings” attributed to her were made by her but instead were done by someone else who signed in her name. She allegedly made 260 requests to “unmask” Americans who had been in communication with non-U.S. citizens that were under surveillance. Recent testimony, declassified by Grenell has shown that to be the case and Power’s testimony coincides with Gowdy’s recollection of the events. “I think if she were on your show, she would say those requests to unmask may have been attributed to her, but they greatly exceed by an exponential factor the requests she actually made,” said Gowdy, in October 2017 to Fox News.

Tucker Carlson presses Trey Gowdy on his defense of the FBI's actions during the Russia investigation:

"My mistake was relying on the word of the FBI and the DOJ and not insisting on all of the documents. Luckily, it took me about three weeks to correct that mistake." pic.twitter.com/nsAXL1lb8g

— Daily Caller (@DailyCaller) May 12, 2020

There are now quite a few people known who said completely different things in public from what they said under oath.

• Another Former Obama Official Contradicts Her Public Statements (Turley)

The long-delayed release of testimony from the House Intelligence Committee has proved embarrassing for a variety of former Obama officials who have been extensively quoted on the allegedly strong evidence of collusion by the Trump campaign and the Russians. Figures like James Clapper, who is a CNN expert, long indicated hat the evidence from the Obama Administration was strong and alarming. However, in testimony, Clapper denied seeing any such evidence.

One of the most embarrassing is the testimony of Evelyn Farkas, a former Obama Administration official who was widely quoted in her plea to Congress to gather the evidence that she knew was found in by the Obama Administration. In her testimony under oath Farkas repeatedly stated that she knew of no such evidence of collusion. Farkas, who served as the deputy assistant secretary of Defense for Russia/Ukraine/Eurasia, was widely quoted when she said on MSNBC in 2017 that she feared that evidence she knew about would be destroyed by the Trump Administration.

She stated: “..was urging my former colleagues, and, frankly speaking, the people on the Hill… Get as much information as you can, get as much intelligence as you can, before President Obama leaves the administration, because I had a fear that somehow that information would disappear with the senior people that left. So it would be hidden away in the bureaucracy . . . the Trump folks, if they found out how we knew what we knew about their, the staff, the Trump staff’s dealing with Russians, that they would try to compromise those sources and methods, meaning we would no longer have access to that intelligence. So I became very worried, because not enough was coming out into the open, and I knew that there was more.”

MSNBC never seriously questioned the statements despite the fact that Farkas left the Obama Administration in 2015 before any such investigation could have occurred. As we have seen before, the factual and legal basis for such statements are largely immaterial in the age of echo journalism. The statement fit the narrative even if it lacked any plausible basis. Not surprisingly, the House Intelligence Committee was eager to have Farkas share all that she stated she “knew about [“the Trump folks”], their staff, the Trump’s staff’s dealing with Russian” and wanted to get “into the open.” After all, she told MSNBC that “I knew that there was more.”

She was finally put under oath in the closed classified sessions and there was nothing but classified crickets. Farkas was repeatedly asked to share that information that electrified the MSNBC hosts and audience. She repeatedly denied any such knowledge, telling then Rep. Trey Gowdy (R, S.C.), “I didn’t know anything.” Gowdy noted that Farkas left the Obama administration in 2015 and asked “Then how did you know?” She repeated again “I didn’t know anything.”

“If any of us [..] were to lie to federal investigators in the course of a properly predicated counterintelligence investigation..”

Isn’t that exactly the point? Barr said it was not properly predicated?!

• 2,000 Former DOJ, FBI Officials Demand Barr Resign Over Flynn Case (UPI)

Almost 2,000 former federal prosecutors and members of the Federal Bureau of Investigation published an open letter Monday calling for the resignation of Attorney General William P. Barr over the dropping of the Michael Flynn case in federal court. Former U.S. Department of Justice and FBI officials, identifying themselves as both Republicans and Democrats, said Barr’s decision to drop prosecution of Flynn, President Donald Trump’s first national security advisor, was a case of using “the Department as a tool to further President Trump’s personal and political interests,” the letter said. “Make no mistake: The Department’s action is extraordinarily rare, if not unprecedented,” the letter added.

“If any of us, or anyone reading this statement who is not a friend of the President, were to lie to federal investigators in the course of a properly predicated counterintelligence investigation, and admit we did so under oath, we would be prosecuted for it.” Last week, Barr’s prosecutors asked a U.S. District judge to dismiss the charge of making false statements to the FBI with prejudice against Flynn, a retired U.S. Army lieutenant general. Co-signers of the letter said Barr earlier overruled sentencing recommendations to seek favorable treatment for President Trump’s close associate, Roger Stone, showing that Barr was doing the president’s bidding as Attorney General.

[..] “[Barr’s actions flout] the core principle that politics must never enter into the Department’s law enforcement decisions and undermined its mission to ensure equal justice under the law,” the letter said. Co-signers included former federal prosecutors and some former presidential appointees. The highest-ranking signee was Stuart Gerson, who served during the Clinton administration as acting attorney general, NBC News reported. The letter urged District Court Judge Emmet Sullivan, who’s in charge of the Flynn case, to examine the DOJ’s rationale for dismissing the charges, and to hold hearings with witnesses if necessary, then to “deny the motion and proceed with sentencing if appropriate.” Along with urging Barr’s resignation, the group urged Congress to reschedule a House Judiciary Committee meeting to censure Barr, “and demand that he answer for his abuses of power.”

We try to run the Automatic Earth on people’s kind donations. Since their revenue has collapsed, ads no longer pay for all you read, and your support is now an integral part of the process.

Thank you.

Doesn't matter, still on a walk pic.twitter.com/WVNgSChPyi

— Life on Earth (@planetpng) May 11, 2020

Support the Automatic Earth in virustime.

Debt Rattle December 7 2019

Dec 072019

December 7, 2019 Posted by Raúl Ilargi Meijer at 10:26 am Finance Tagged with: Abenomics, Bloomberg, FBI, Fed, impeachment, IPO, Kamala, Musk, Pelosi, Saudi, Strzok, Trump 12 Responses »

Dorothea Lange Homeless mother and child walking from Phoenix to Imperial County CA Feb 1939

• Donald Trump and Jerome Powell Can ‘Take Another Victory Lap’ (Y!)

• Abenomics has Failed Japan. Financial Times Wants to Make it Global. (Lacalle)

• What the ‘Expert’ Panel Should Have Told You About Impeachment (ET)

• A Fraught Moment (Kunstler)

• Strzok and Page Did Real Damage (Cortese)

• Pelosi Puts A Brave Face On A Doomed Mission (Tucker Carlson)

• Bloomberg On His Democratic Rivals: ‘Trump Would Eat ‘Em Up’ (R.)

• Kamala Harris, Michael Bloomberg, and a Supreme Court Decision (IC)

• Musk’s Defamation Win May Reset Legal Landscape For Social Media (R.)

• Saudi Arabia Retreats From The Troubles Its Clown Prince Caused (MoA)

If you look only at jobs, and not even the quality of those jobs, things may appear shiny. We get it.

• Donald Trump and Jerome Powell Can ‘Take Another Victory Lap’ (Y!)

The November jobs report crushed expectations on Friday, sending the stock market surging. “Jerome Powell and Donald Trump can take another victory lap,” said Danielle DiMartino Booth, a former Federal Reserve advisor and CEO of Quill Intelligence. The economy added 266,000 jobs in November, according to a report released Friday by the Bureau of Labor Statistics. The prior two months of job gains were revised higher pushing the three month average of job adds to 205,000. “In stark contrast to just about every other source of economic data, the jobs data insists the U.S. economy is strong, and that is all markets care about as it is the most visible and most quoted,” Booth said. “The reaction in the dollar and bond yields speaks volumes to how surprised markets were to this data.”

[..] As for Fed Chair Jerome Powell, he has steered a Federal Reserve that cut interest rates three times so far this year in an effort to reverse the hawkishness of Fed policy last year, which included four rate hikes, and to get ahead of any economic weakness sparked by the ongoing trade tensions between the U.S. and China. The Federal Reserve meets again next week, and most market participants aren’t expecting any changes to rates. “Despite the strengthening trend, this [jobs report] will not change anything at the Fed aside from what officials say publicly,” Booth said.

Abe and the BOJ looked only at deflation. And the harder they tried to make them spend, the more fearful of spending the Japanse people became.

• Abenomics has Failed Japan. Financial Times Wants to Make it Global. (Lacalle)

A recent article in the Financial Times, “Abenomics provides a lesson for the rich world,” mentioned that the experiment started by Prime Minister Shinzo Abe in the early 2010s should serve as an important warning for rich countries. Unfortunately, the article’s “lessons” were rather disappointing. These were mainly that the central bank can do a lot more than the ECB and the Fed are doing, and that Japan is not doing so badly. I disagree. The failure of Abenomics has been phenomenal. The balance sheet of the Central Bank of Japan has ballooned to more than 100% of the country’s GDP, the central bank owns almost 70% of the country’s ETFs and is one of the top 10 shareholders in the majority of the largest companies of the Nikkei index.

Government debt to GDP has swelled to 236%, and despite the record-low cost of debt, the government spends almost 22% of the budget on interest expenses. All of this to achieve what? None of the results that were expected from the massive monetary experiment, inventively called QQE (quantitative and qualitative easing) have been achieved, even remotely. Growth is expected to be one of the weakest in the world in 2020, according to the IMF, and the country has consistently missed both its inflation and economic growth targets, while the balance sheet of the central banks and the country’s debt soared. Real wages have been stagnant for years, and economic activity continues to be as poor as it was in the previous two decades of constant stimulus.

[..] The wrong diagnosis will lead to worsening outcomes. When the government is surrounded by economists that tell them that the problem of the economy is that there are too many savings, the government will decide to raise taxes and create a larger problem attacking consumption. With private debt at 221% of GDP. Japan has many issues, none of them being a “savings glut.” If you abandon structural reforms, the results will be worse. The QQE program was based on three “arrows”: monetary policy, government spending, and structural reforms. Guess which arrow they forgot to implement? Exactly. Structural reforms never happened, and when they did, they came in the form of higher taxes and more interventionism, the opposite of what the economy needed.

Back to the 18th century we go.

• What the ‘Expert’ Panel Should Have Told You About Impeachment (ET)

Many phrases in the Constitution—such as “necessary and proper,” “Privileges and Immunities,” and “Convention for proposing Amendments”—carry specialized 18th century meanings not obvious to the modern reader. Recall that most of the leading Founders were lawyers and the Constitution is a legal document. Some of these phrases derive from 18th century law. Therefore, to understand them you have to consult 18th century legal materials in addition to better-known sources such as the 1787 convention debates or the Federalist Papers. Unfortunately, most of the scholars called by the House Judiciary Committee to address the meaning of “high Crimes and Misdemeanors” were not able to do so accurately.

According to the authoritative Westlaw database, two of the three Democratically appointed witnesses have published no scholarly work on impeachment: Their specialties are in other areas. None showed any familiarity with 18th century fiduciary standards—which (as explained below) are part of the law of impeachment. All of the witnesses voted against President Trump, and several have been involved in anti-Trump activity. It’s not surprising, therefore, that, except for professor Jonathan Turley’s heavily footnoted 53-page written statement, the testimony was biased and superficial. [..] The core of the case against President Trump is that he used his political position to seek re-election assistance from a foreign government. Although there’s dark talk of crimes committed, the principal charge is fiduciary rather than criminal. In other words, a “high … Misdemeanor.”

House Democrats have struggled to define Trump’s alleged offense. Initially, they described it as “quid pro quo.” Then they employed the term “bribery.” The legally correct designation is “self-dealing.” Self-dealing is betraying your employer’s interests to enrich yourself. It’s a violation of the fiduciary duty of loyalty. We can assume the president might benefit from a Ukrainian investigation, but that doesn’t mean asking for an investigation was self-dealing as defined by fiduciary, and therefore by impeachment, law. There’s nothing unusual or improper about a president asking a recipient of U.S. foreign aid to address corruption. As for seeking political advantage: If we punished every politician who did that, they would all be swinging from the yardarm.

This is as true in foreign as in domestic affairs. When President Barack Obama told the Russian president he would have more flexibility after his re-election, he was saying (1) an agreement now would benefit both Russia and the United States, but (2) I’m going to sacrifice our mutual interests for the present because such an agreement might hurt my re-election campaign. Was this impeachable self-dealing? Almost certainly not. So where is the divide between “normal” conduct and impeachable conduct? To answer this, we need to weigh at least three factors: impeachment precedent, the national interest, and the practice of other presidents.

The Horowitz report is due on Monday. He’s scheduled to testify on Wednesday.

• A Fraught Moment (Kunstler)

The IG has no real law enforcement powers. He can only refer or recommend further action. Nevertheless, a great miasma of anxiety oppresses the Democratic Party now as it awaits whatever Mr. Horowitz has to say about these matters. The party’s propaganda arms at The New York Times, the WashPo, and cable news networks worked up a frenzy of distractions and ruses this past week — for instance the “bombshell” that International-Man-of-Mystery Joseph Mifsud was not a hireling of the FBI. Of course, nobody ever claimed he was. Rather, he is suspected of being an agent of the Italian intel service with links to British intel, both used by the CIA as beards for its nefarious activities around its own election meddling of 2016.

House Speaker Nancy Pelosi’s Democratic caucus has been busy with ersatz impeachment proceedings, which are invidiously scheduled to continue next week as a smokescreen to conceal the Horowitz findings. It’s been a frantic campaign for them at a fraught moment in this long saga — but the odor of desperation is thick and rank. Of course, behind the Horowitz report loom the specters of Barr & Durham. Whatever they’ve been up to has been hermetically sealed in a globe of silence even more oppressive and nightmarish for the Dems than the IG’s inquiry. Barr & Durham are able to make things stick, most crucially genuine criminal culpability for the entire RussiaGate fiasco and all of its offshoots, including the most recent “Whistleblower” caper — a patently treasonous scheme. Who knows if and when indictments start raining down, but there’s a chance that it will be a very hard rain indeed.

Jeff Cortese, a financial crimes manager in the private sector, is the former acting chief of the FBI’s Public Corruption Unit.

• Strzok and Page Did Real Damage (Cortese)

Strzok and Page were employed by what was the world’s leading law enforcement agency. The integrity of their work and the work of their FBI peers was paramount to maintaining stability and confidence in the country and its law enforcement. It’s not news that the FBI’s reputation has taken a hit in recent years, but the extent of the impact from the imprudence of Strzok and Page is likely not fully understood by most people. Their obvious improprieties created a level of widespread distrust in the FBI not previously seen. Recruiting assets and sources, finding willing participants for interviews, and even trial success can all be adversely impacted by the decline in the FBI’s reputation.

Former colleagues have told me they recently lost otherwise strong cases because lone jurors claimed after trial they refused to convict anyone investigated by the FBI. Criminals are literally walking the streets because the FBI has lost the confidence of the American people. And that decline is directly linked to the famously poor judgment made by two senior FBI employees who knew better. This is precisely why the FBI teaches its agents never to engage in activity on FBI phones or in a public forum that reveals personal bias. The risk to the Agency is too significant. The work of all the great men and women in the FBI should not be jeopardized by the actions of one, or two, of its people.

As Americans we have a soft spot for stories of redemption. We are a country of second chances, and that is a good thing. The idea that anyone could find pleasure in someone’s downfall is abhorrent, even if they hold opposing political views. That is not to say Peter Strzok and Lisa Page did not do this to themselves. They did. They made themselves political talking points that will be used by politicians and pundits until the next election, and perhaps beyond.

“The framers, Pelosi tells us, worried that corrupt Americans might take money from foreign powers to do their bidding. And that, class, is why we need to impeach Donald Trump. Get it? Wait a second. Trump didn’t take money from Ukraine; Hunter Biden did.”

• Pelosi Puts A Brave Face On A Doomed Mission (Tucker Carlson)

Nancy Pelosi, Speaker of the House: “Let us begin where our Founders began in 1776: “When in the course of human events it becomes necessary for one people to dissolve the political bonds which have connected them with another.” With those words, our founders courageously began our Declaration of Independence, from an oppressive monarch, for among other grievances, the king’s refusal to follow rightfully passed laws. In the course of today’s events, it becomes necessary for us to address, among other grievances, the president’s failure to faithfully execute the law.” It’s just mesmerizing on many levels. But what did it mean exactly? Well, it was a metaphor. Trump is a slightly more orange version of King George III.

Democrats are the patriots plotting to overthrow him with violence. If that strikes you as alarming, Pelosi has a few words of comfort. A group of 18th-century slaveholders, she assures us, would have been completely in favor of what she’s doing. Pelosi: “James Madison, the architect of the Constitution, warned that the president might betray his trust to foreign powers, which might prove fatal to the republic. Another Founder, Gouverneur Morris, feared that a president may be bribed by a greater interest to betray his trust. He emphasized that this magistrate is not the king. The people are the king.” So, James Madison has given Nancy Pelosi his personal seal of approval. Remember that the next time Pelosi’s acolytes try to pull Madison’s statue off its pedestal for crimes against progressive orthodoxy.

For a brief moment, the Founders of our country are useful to the left, so they’re being presented as heroes. Enjoy it while it lasts. The framers, Pelosi tells us, worried that corrupt Americans might take money from foreign powers to do their bidding. And that, class, is why we need to impeach Donald Trump.Get it? Wait a second. Trump didn’t take money from Ukraine; Hunter Biden did. Trump just pointed that out. He was on James Madison side on that score, vigilantly policing bribery by a hostile foreign power. And for that, he must be removed from office.

But not him?

• Bloomberg On His Democratic Rivals: ‘Trump Would Eat ‘Em Up’ (R.)

Democratic presidential contender Michael Bloomberg said on Friday that Donald Trump would easily defeat any of his Democratic White House rivals in next year’s election, bluntly declaring: “Donald Trump would eat ‘em up.” Bloomberg, 77, a billionaire media mogul and former New York mayor, was a late entry into the race last month. He has been privately disparaging of his Democratic presidential rivals but this was the first time he had been so critical of them in public. In an interview on CBS’s “This Morning,” Bloomberg said: “I looked at our national government getting worse, the way we’re behaving overseas and domestically, led by our president.”

“I said back in 2016, ‘He is the wrong person for the job. He doesn’t have the temperament or the ethics or the intellect to do the job.’” Bloomberg added: “And I said, ‘We just can’t have another four years of this.’ And then I watched all the candidates. And I just thought to myself: ‘Donald Trump would eat ‘em up’.” Bloomberg, a former Republican and independent, fears that liberal candidates such as U.S. Senators Elizabeth Warren and Bernie Sanders, and their proposed costly expansion of government programs, will alienate voters in battleground states.

Michael Bloomberg explains in an interview why he thinks he can defeat Donald Trump in 2020 https://t.co/AlQTMgVgIS pic.twitter.com/0LfsJCO0u7

— Reuters (@Reuters) December 7, 2019

I wouldn’t want to create the impression that Kamala due to a lack of money.

• Kamala Harris, Michael Bloomberg, and a Supreme Court Decision (IC)

Democratic Sen. Kamala Harris of California suspended her presidential campaign on Tuesday. Why? Because, she said, she did not “have the financial resources we need to continue. I’m not a billionaire. I can’t fund my own campaign.” Meanwhile, former New York Mayor Michael Bloomberg, who definitely is a billionaire, has spent at least $57 million of his own money since he jumped into the race on November 24. Harris, by contrast, raised $36 million as of her last campaign filing in October. Of that, she’d spent almost $26 million since she announced her campaign last January 21. The divergence in the fates of the two candidates can be traced back to a Supreme Court decision on the constitutionality of campaign finance law.

But the case involved is not Citizens United v. Federal Election Commission, from 2010. It’s a far less famous one: Buckley v. Valeo, from 1976. The decision opened the door for billionaires — and, more generally, the ultra-rich — to spend as much as they want on their own political campaigns. The divergence in the fates of Harris and Bloomberg can be traced back to a Supreme Court decision — not from Citizens United in 2010, but Buckley v. Valeo in 1976. One of the main forces behind the case was a young Republican lawyer named John Bolton, later to become President Donald Trump’s national security adviser for a time. In Bolton’s memoir, he proudly states that “Everyone knew the decision in Buckley v. Valeo could determine … the future shape of American politics.” Bolton was right — and his long-ago efforts continue to bear fruit today.

Watergate was, among other things, a scandal about money in politics. President Richard Nixon’s 1972 reelection campaign had accepted bribes, including $200,000 from the chairman of the board of McDonald’s in return for permission from the federal government to raise the price of their Quarter Pounder cheeseburger. Soon after Nixon resigned in 1974, Congress responded with significant amendments to the Federal Election Campaign Act. This included a new limit of $50,000 per calendar year on what presidential candidates could spend of their own money on their campaign. Adjusting for inflation, that’s about $275,000 today.

Just two years later, however, the Supreme Court struck that limit down in the Buckley case. Those running for political office could now spend any amount of their own fortune they wanted. In fact, the court stated, it could be good for the wealthy to self-fund runs for office, because “the use of personal funds reduces the candidate’s dependence on outside contributions and thereby counteracts the coercive pressures and attendant risks of abuse.”

Are we now all free to call each other whatever we want?

• Musk’s Defamation Win May Reset Legal Landscape For Social Media (R.)

Elon Musk’s daring has left its mark on electric cars and rockets, and now experts say the entrepreneur may have reshaped U.S. defamation law with his willingness to defend at a high-stakes trial a lawsuit over an off-the-cuff tweet. The victory by Tesla Inc’s outspoken chief executive over a Twitter message describing a British cave explorer as “pedo guy” has raised the bar for what amounts to libel online, according to some legal experts. Musk defended his comments as trivial taunts made on a social media platform that he argued everyone views as a world of unfiltered opinion, which is protected as free speech, rather than statements of fact.

“I think this verdict reflects that there is a feeling that internet tweets and chats are more like casual conversation whether you call it opinion or rhetoric or hyperbole and should not be punished in a lawsuit,” said Chip Babcock, a lawyer who defends against defamation lawsuits. Several other attorneys who specialize in defamation cases privately expressed surprise at the outcome of what they viewed as a strong case for the cave explorer, Vernon Unsworth. They attributed it to Musk’s fame and the perceived youthfulness of the jury. But they also agreed it would shift the legal landscape, undercutting the cases that would have seemed viable before the trial while defendants would use it to try to reduce possible settlement values.

Musk’s court papers cast his comments as part of the rough-and-tumble world of Twitter, which rewards and encourages emotional outbursts and sucks in readers worldwide but that no one takes seriously. Mark Sableman, a lawyer who defends defamation cases, said the freewheeling nature of social media has inevitably changed the understanding of language and what amounts to defamatory factual statements, versus opinion. “I think defendants in modern defamation cases are likely to point to the vitriolic no-holes-barred nature of modern social media, cable TV, and political discourse, in contending that many words and accusations formerly considered defamatory are now understood only as mere opinions, not factual assertions,” he said.

“..some $25.6 billion will be taken out of the left Saudi trouser pocket to be put into the right one.”

• Saudi Arabia Retreats From The Troubles Its Clown Prince Caused (MoA)

Iran has enabled the Houthi to resist throughout the 5 years of war the Saudis waged on them. Drones and missiles parts provided by Iran to the Houthi allowed them to compel the Saudis to file for peace. It is thereby highly unlikely that the Houthi will dissociate themselves from Iran. They will agree to end their attacks on Saudi Arabia if the Saudis end their attacks on Yemen and pay for the damage their war has caused. If the Saudis do not agree to that more of their helicopters will come down in flames and more of their oil installations will be set on fire. The war on Yemen was started by clown prince Muhammad bin Salman who was then Defense Minister of Saudi Arabia.

He had hoped for a fast victory but the well equipped Saudi military proved to be incapable of defeating barefoot Houthi in the mountains of north Yemen. The war costs the Saudis several billions per month and threatened to ruin the state. Muhammad Bin Salman’s other projects did not go any better. He had planned to sell shares of Saudi Aramco at international stock exchanges and at a total valuation of 2 trillion dollar. The move was supposed to bring in $100 billion to finance a further industrialization of the Saudi economy. After many delays Saudi Aramco is now finally making its initial public offering. The shares will start trading on December 11. But the stock will only be listed at the Saudi Tadawul exchange.

The initial share price offer puts the value of the company at $1.7 trillion which is higher than the $1.5 trillion estimate international banks had published. Today the Saudis announced a large cut in their oil output to increase the global oil prices and the company’s valuation. That might attract more urgently needed buyers to the IPO. But the stocks will still be sold to mainly domestic entities, if needed with some pressure. Instead of attracting $100 billion of fresh money from abroad some $25.6 billion will be taken out of the left Saudi trouser pocket to be put into the right one. The economic benefit for the country is dubious.

Two and a half years ago the clown prince tried to attack and occupy Qatar. The given ideological reason was the Qatari support for the Muslim Brotherhood. But the real reason was the Saudi need for more money which MbS tried to gain through a real estate and resource grab. The project failed when Turkish troops came to Qatar’s aid.

Put the Automatic Earth on your Christmas donations list. Support us on Paypal and Patreon.

Top of the page, left and right sidebars. Thank you.

Debt Rattle October 5 2018

Oct 052018

October 5, 2018 Posted by Raúl Ilargi Meijer at 9:05 am Finance Tagged with: China, City of London, GRU, Kavanaugh, Musk, plastics, Russia, SEC, short sellers, spies, stockpiling, Treasuries 7 Responses »

Paul Gauguin Contes barbares 1902

• Economy on Sugar High Before Trade War Worsens (DDMB)

• Gundlach Says Treasury Market Is Witnessing A ‘Game Changer’ (MW)

• Republicans Aim To Confirm Kavanaugh On Weekend; Protesters Arrested (R.)

• Explosive Report Details Chinese Infiltration Of Apple, Amazon And The CIA (ZH)

• Mattis Says Russian GRU Caught Red-Handed Hacking OPCW (ZH)

• String Of Own Goals By Russian Spies Exposes A Strange Sloppiness (G.)

• Elon Musk Mocks SEC as ‘Shortseller Enrichment Commission’ (CNBC)

• Elon Musk Accuses BlackRock Of Helping Short Sellers (CNBC)

• EU Tells UK To Stop ‘Wasting Time’, Find Irish Border Solution (Ind.)

• The Outsized Power Of The City Of London Makes Britain Poorer (G.)

• Huge Rise In US Plastic Waste Shipments To Poor Countries After China Ban (G.)

Later today: Nobel Peace Prize. US jobs numbers. And more Kavanaugh, no doubt.

But first: Stockpiling before tariffs set in.

• Economy on Sugar High Before Trade War Worsens (DDMB)

Across the U.S., companies are hitting the panic button. The Trump administration has levied 10 percent tariffs on $200 billion of Chinese goods, a charge that is expected to rise to 25 percent by 2019. This tops the tariffs on $50 billion of Chinese goods that were imposed in August, and is an effective tax on U.S. consumers, who will soon be paying more for everything from cosmetics to clothing to cars if they aren’t already. Against that backdrop, it’s becoming clear that many companies are rushing to secure products and materials before prices rise regardless of current demand. You could say they are in panic-buying mode.

The upside is that this behavior bolsters economic growth in the short term. The downside is that there is likely to be a nasty hangover. The noise in the economic data will be amplified by the rebuilding from Hurricane Florence. The estimates of the storm’s damage span from $20 billion to $50 billion. Evidence that panic buying has set in was seen in the September Chicago Purchasing Managers Index report, which is a bellwether for the broader national manufacturing sector. While the results “disappointed,” with the index falling from 63.6 to a still high 60.4 and the new orders component sinking to a six-month low, the inventory component surged above the 60 mark. (In these diffusion indexes, readings above 50 denote expansion.)

To put the stockpiling in context, inventories have only breached 60 twice this year. Such nosebleed readings are so rare that they rank in the 97th percentile over the last 30 years. As per the Chicago PMI: “Firms continued to add to their stock levels, building on August’s marked rise. The scarce availability of inputs continued to encourage stockpiling while forecasts of higher future demand also contributed to the rise in inventories.”

Large sums of money are moving.

• Gundlach Says Treasury Market Is Witnessing A ‘Game Changer’ (MW)

For investors looking for an inflection point in the bond market, this is it. Jeff Gundlach, chief executive of Doubleline Capital, on Thursday projected that U.S. Treasury yields are likely to rise further and investors should adjust accordingly. The so-called bond king said in an interview with CNN that the 10-year yield could rise to 3.5% and the 30-year could climb to 4%, which are likely to hurt companies sensitive to higher rates, such as auto makers. In a tweet last month, Gundlach had forecast that the 30-year Treasury yield closing above 3.25% two days in a row will signify a “game changer,” a view he reiterated Thursday.

His prophecy has been fulfilled. The 30-year Treasury yield ended at 3.357% on Thursday after rising to 3.316% on Wednesday, according to FactSet. The 30-year yield has “definitively broken above a multiyear base that should, over time, carry us to significantly higher yields,” Gundlach told Reuters. “Also, the curve is steepening a little in this breakout, which is another sign that the situation has changed.” Yields rose sharply this week on the back of strong economic data that supported the widespread belief that the Federal Reserve will maintain its hawkish bias to forestall a possible overheating of the economy.

Ugliness assured.

• Republicans Aim To Confirm Kavanaugh On Weekend; Protesters Arrested (R.)

President Donald Trump’s fellow Republicans gained confidence on Thursday that his U.S. Supreme Court nominee, Brett Kavanaugh, could win Senate confirmation after two wavering lawmakers responded positively to an FBI report on accusations of sexual misconduct against the judge. The report, sent by the White House to the Senate Judiciary Committee in the middle of the night, was denounced by Democrats as a whitewash that was too narrow in scope and ignored critical witnesses. Thousands of anti-Kavanaugh protesters rallied outside the Supreme Court and entered a Senate office building, holding signs such as “Believe Survivors” and “Kava-Nope.”

Hundreds of demonstrators were arrested, including actress Amy Schumer. But Republicans moved forward with plans for a key procedural vote on Friday and a final vote on Saturday on confirming the conservative federal appeals judge for a lifetime job on the top U.S. court. The timing of the vote could be complicated by Republican Senator Steve Daines, whose office said on Thursday he planned to attend his daughter’s wedding in Montana on Saturday, making him unavailable to cast his vote.

Was reading this yesterday. What a story.

• Explosive Report Details Chinese Infiltration Of Apple, Amazon And The CIA (ZH)

The story begins with a Silicon Valley startup called Elemental. Founded in 2006 by three engineers who brilliantly anticipated that broadcasters would soon be searching for a way to adapt their programming for streaming over the Internet, and on mobile devices like smartphones, Elemental went about building a “dream team” of coders who designed software to adapt the super-fast graphics chips being designed for video gaming to stream video instead. The company then loaded this software on to special, custom-built servers emblazoned with its logo. These servers then sold for as much as $100,000 a pop – a markup of roughly 70%. In 2009, the company received its first contract with US defense and intelligence contractors, and even received an investment from a CIA-backed venture fund.

Elemental also started working with American spy agencies. In 2009 the company announced a development partnership with In-Q-Tel Inc., the CIA’s investment arm, a deal that paved the way for Elemental servers to be used in national security missions across the U.S. government. Public documents, including the company’s own promotional materials, show that the servers have been used inside Department of Defense data centers to process drone and surveillance-camera footage, on Navy warships to transmit feeds of airborne missions, and inside government buildings to enable secure videoconferencing. NASA, both houses of Congress, and the Department of Homeland Security have also been customers. This portfolio made Elemental a target for foreign adversaries.

Like many other companies, Elementals’ servers utilized motherboards built by Supermicro, which dominates the market for motherboards used in special-purpose computers. It was here, at Supermicro, where the government believes – according to Bloomberg’s sources – that the infiltration began. Before it came to dominate the global market for computer motherboards, Supermicro had humble beginnings. A Taiwanese engineer and his wife founded the company in 1993, at a time when Silicon Valley was embracing outsourcing. It attracted clients early on with the promise of infinite customization, employing a massive team of engineers to make sure it could accommodate its clients’ every need.

Customers also appreciated that, while Supermicro’s motherboards were assembled in China or Taiwan, its engineers were based in Silicon Valley. But the company’s workforce featured one characteristic that made it uniquely attractive to China: A sizable portion of its engineers were native Mandarin speakers. One of Bloomberg’s sources said the government is still investigating whether spies were embedded within Supermicro or other US companies).

Hard to believe. Holland has been targeting Russia for years, can’t trust them when it comes to these stories.

• Mattis Says Russian GRU Caught Red-Handed Hacking OPCW (ZH)

Russia is facing new multiple wide-ranging charges of hacking as Western officials on Wednesday alleged its intelligence agencies conducted four high profile cyber attacks, including an attempt to spy on the Organisation for the Prohibition of Chemical Weapons (OPCW), which is the independent body responsible for investigating chemical attacks in Syria and in the UK. The OPCW is headquartered the Netherlands, and according to breaking reports a group that the Dutch government has alleged are Russian operatives may have been caught red-handed in the act. Moscow has dismissed the charges as but more “Western spy mania” while leveling its own accusations that the Pentagon is conducting an illegal and dangerous germ and bio-weapons research program near Russia’s borders.

The BBC reports based on Dutch government statements: “The four suspects identified by Dutch officials had diplomatic passports and included two IT experts and two support agents, officials said. They hired a car and parked it in the car park of the Marriot hotel in The Hague, which is next to the OPCW office, to hack into the OPCW’s wifi network, Major General Onno Eichelsheim from the Dutch MIVD intelligence service said.” Authorities were quick to release photographs of the group’s alleged hacking equipment and computers in the trunk of a car. Police say they are GRU operatives (also known as the Main Intelligence Directorate – the intelligence arm of the Russian military) who planned to intercept login passwords to gain access to OPCW internal files (in what appears to have been a low security environment, given wifi use to store sensitive files).

The Dutch government released the above photo which it says proves Russian spies tried to hack OPCW headquarters

But strangely the four men, identified as spies, were immediately escorted out of the Netherlands as opposed to being detained for further questioning and possible trial. Meanwhile the UK government further accused the GRU of conducting cyber-attacks on private firms in Ukraine and Russia, the US Democratic Party, as well as a small TV network in Britain. U.S. Defense Secretary Jim Mattis, addressing the charges on Thursday after a two-day meeting in Brussels, said Russia must be held accountable for its attempts to hack the OPCW office.

Not only are Russians mean people, they are dumb too. Who believes that?

• String Of Own Goals By Russian Spies Exposes A Strange Sloppiness (G.)

It must go down as one of the most embarrassing months ever for Russia’s military intelligence. In the 30 days since Theresa May revealed the cover identities of the Salisbury poison suspects, the secretive GRU (now GU) has been publicly exposed by rival intelligence agencies and online sleuths, with an assist from Russia’s own president. Despite attempts to stonewall public inquiry, the GRU’s dissection has been clinical. The agency has always had a reputation for daring, bolstered by its affiliation with special forces commando units and agents who have seen live combat.

But in dispatching agents to the Netherlands who could, just using Google, be easily exposed as graduates of an elite GRU academy, the agency appears reckless and absurdly sloppy. One of the suspected agents, tipped as a “human intelligence source” by Dutch investigators, had registered five vehicles at a north-western Moscow address better known as the Aquarium, the GRU finishing school for military attaches and elite spies. According to online listings, which are not official but are publicly available to anyone on Google, he drove a Honda Civic, then moved on to an Alfa Romeo. In case the address did not tip investigators off, he also listed the base number of the Military-Diplomatic Academy.

A judge just oredred Musk and the SEC to explain their settlement.

• Elon Musk Mocks SEC as ‘Shortseller Enrichment Commission’ (CNBC)

Tesla CEO Elon Musk mocked the Securities and Exchange Commission in a tweet Thursday, calling the agency the “Shortseller Enrichment Commission,” days after settling fraud charges brought against him by the agency. The tweet, which is missing a word and appears to take a sarcastic tone, says “the Shortseller Enrichment Commission is doing incredible work” and commends the SEC on a name change that did not occur. Musk doubled down on the remark when another Twitter user said Musk needs a “a social team that can get attention without typos and without enraging the Shortseller Enrichment Committee.” The Tesla CEO asked, “Why would they be upset about their mission? It’s what they do.”

Hardly ever a useful idea to go after short sellers.

• Elon Musk Accuses BlackRock Of Helping Short Sellers (CNBC)

Tesla CEO Elon Musk has accused large fund managers such as BlackRock for fueling short sellers, a group of investors he has been criticizing on his Twitter account. In a series of Twitter posts on Thursday night, Musk alleged that BlackRock and other financial firms pocket “excessive profit” from lending shares they hold to short sellers because “they’re suffering a net loss.” Short sellers are investors who bet on the decline of a security, such as a stock. They make money by selling the shares they borrow, and hope the price falls so they can buy them back at a lower price and make profits from it.

Musk also said those funds were “pretending to charge low rates” for their passive “index tracking” products. Fund managers have lowered management fees on certain products due to increased competition in the space. Fidelity Investments said last month it was launching two no-fee index funds, while Vanguard announced in July that investors using its online brokerage platform could trade exchange-traded funds without commission. At the same time, fund managers have been growing their business in securities lending — which is the process of temporarily transferring ownership of shares or bonds to another party, such as short sellers.

The companies earn a fee in return for loaning out their holdings. Securities lending is a lucrative business, according to an opinion piece by Financial Times in April. The newspaper, which cited a regulatory filing, said BlackRock made $597 million in revenue last year from lending securities. Musk hit out at that practice, saying “there is no rational basis” for long-term shareholders to engage in that business. He claimed that doing so “dilutes the shareholder base” while giving short sellers “a strong incentive to attack the company by whatever means possible.”

The EU should not let Tusk do these things, he’s too easy a target. Let Barnier do the talking.

• EU Tells UK To Stop ‘Wasting Time’, Find Irish Border Solution (Ind.)

The EU has told the UK to stop “wasting time” and find a solution to the Irish border row, with just two weeks until the next showdown summit over Brexit. Donald Tusk, the European Council president, turned his fire on Jeremy Hunt for likening the EU to the Soviet Union – accusing ministers of rousing the Tory faithful, instead of striving to reach an agreement. “Unacceptable remarks that raise the temperature will achieve nothing except wasting more time,” Mr Tusk said. “I was a party leader myself for 15 years, so I know what the rules of party politics are. But now, once the Tory conference is over, we should get down to business.”

Speaking alongside Leo Varadkar, the Irish president, Mr Tusk made clear the EU remained “united behind Ireland” in its determination to prevent a return to border posts and checks. But he also made clear his anger at the delay to Theresa May’s promised fresh border proposals – linking it to a reluctance to risk a backlash at the Tory conference. In Birmingham, Mr Hunt, the foreign secretary, triggered fury across the EU by accusing it of trying to keep the UK in a “prison” with behaviour similar to the Soviet Union. After the Salzburg summit, the prime minister accused Mr Tusk of showing disrespect, but he tuned that accusation on the UK, saying: “In respecting our partners, we expect the same in return.

It sucks too many resources from the ’periphery’. Re: Rome.

• The Outsized Power Of The City Of London Makes Britain Poorer (G.)

To argue that the City hurts Britain’s economy might seem crazy. But research increasingly shows that all the money swirling around our oversized financial sector may actually be making us collectively poorer. As Britain’s economy has steadily become re-engineered towards serving finance, other parts of the economy have struggled to survive in its shadow, like seedlings starved of light and water under the canopy of a giant, deep-rooted and invasive tree. Generations of leaders from Margaret Thatcher to Tony Blair to Theresa May have believed that the City is the goose that lays Britain’s golden eggs, to be prioritised, pampered and protected. But the finance curse analysis shows an oversized City to be a different bird: a cuckoo in the nest, crowding out other sectors.

[..] A growing body of economic research confirms that once a financial sector grows above an optimal size and beyond its useful roles, it begins to harm the country that hosts it. The most obvious source of damage comes in the form of financial crises – including the one we are still recovering from a decade after the fact. But the problem is in fact older, and bigger. Long ago, our oversized financial sector began turning away from supporting the creation of wealth, and towards extracting it from other parts of the economy. To achieve this, it shapes laws, rules, thinktanks and even our culture so that they support it. The outcomes include lower economic growth, steeper inequality, distorted markets, spreading crime, deeper corruption, the hollowing-out of alternative economic sectors and more.

Stop producing the stuff. It’s not hard. Stop using it.

• Huge Rise In US Plastic Waste Shipments To Poor Countries After China Ban (G.)

Exports of plastic waste from the US to developing countries have surged following China’s crackdown on foreign waste imports, new research has shown. Nearly half of plastic waste exported from the US for recycling in the first six months of 2018 was shipped to Thailand, Malaysia and Vietnam, according to analysis of US census bureau data by Unearthed, Greenpeace’s investigative arm. The previous year, the US sent more than 70% to China and Hong Kong. This year’s ban on foreign waste imports by China, previously the world’s biggest importer of plastic waste for recycling, has left western countries scrambling to offload its extra plastic waste. The US, along with Britain, Germany, Japan and Mexico, is among the biggest exporters of scrap plastic to China.

Campaigners said the analysis, which Unearthed shared with the Guardian, shows the US is exploiting developing countries where there is no regulatory framework to ensure plastic waste is processed in an environmentally friendly way. “Instead of taking responsibility for their own waste, US companies are exploiting developing countries that lack the regulation to protect themselves,” said John Hocevar, Oceans campaign director for Greenpeace USA. The waste, some of which consists of household recycling produced in the US, includes single-use plastic bottles, plastic bags and food wrappings, said Hocevar. It can, however, contain toxic materials. “It’s a problem for the US and other developed countries to produce, often, toxic material which they can’t or won’t take care of themselves.”

Debt Rattle September 30 2018

Sep 302018

September 30, 2018 Posted by Raúl Ilargi Meijer at 9:30 am Finance Tagged with: Bannon, Facebook, FBI, Kavanaugh, Macedonia, Musk, property tax, Silk Road, Sulawesi, Tesla, Vancouver, Wikileaks 2 Responses »

M. C. Escher Bond of union 1956

• White House Directs FBI to Interview Two Kavanaugh Accusers, Not Third (WSJ)

• Where Does Our Attention Belong: Kavanaugh or Yemen? (PCR)

• “Dirty Money” Crackdown As Vancouver Housing Market Grinds To A Halt (ZH)

• May Acts To Tackle Housing Crisis By Imposing Levy On Foreign Buyers (O.)

• Brexit Costing Britain £500m A Week And Rising (O.)

• Steve Bannon Thinks Michael Avenatti Has A Serious Shot In 2020 (ZH)

• New WikiLeaks Release: Corruption in UAE Arms Deal Fueling War on Yemen (MPN)

• Musk Out As Tesla Chair, Remains CEO in $40M SEC Settlement (AP)

• How Facebook Was Hacked And Why It’s A Disaster For Internet Security (F.)

• Fearing Debt Trap, Pakistan Rethinks Chinese ‘Silk Road’ Projects (R.)

• FYROM Citizens Go to the Polls to Decide on Name Change (GR)

• Indonesia Earthquake: Huge Surge In Death Toll (BBC)

Swetnick’s gang rape story looks far-fetched. And not one person corroborates it.

• White House Directs FBI to Interview Two Kavanaugh Accusers, Not Third (WSJ)

The Federal Bureau of Investigation has been instructed by the White House to interview two of the women who have alleged sexual misconduct by Brett Kavanaugh, according to people familiar with the matter. The parameters of the FBI probe don’t include interviewing Julie Swetnick, who said this week the Supreme Court nominee attended a party decades ago where she was gang-raped, according to one of the people. The focus on the first two accusations suggests that the White House doesn’t consider Ms. Swetnick’s accusations credible, people familiar with the instructions said, a decision that drew criticism from Ms. Swetnick’s attorney, Michael Avenatti.

The Wall Street Journal has attempted to corroborate Ms. Swetnick’s account, contacting dozens of former classmates and colleagues, but couldn’t reach anyone with knowledge of her allegations. No friends have come forward to publicly support her claims. She has recorded a TV interview to be aired Sunday, the first woman making accusations against the Supreme Court nominee to do so. NBC’s “Morning Joe” on Thursday aired a clip of her interview with John Heilemann of Showtime’s “The Circus,” in which Ms. Swetnick called for an investigation into the allegations against Judge Kavanaugh.

Paul Craig Roberts is right, but undermines himself by saying women should have more responsible sex.

• Where Does Our Attention Belong: Kavanaugh or Yemen? (PCR)

There are reports that the Washington-initiated and militarily- supported Saudi Arabian war against Yemen have a starving Yemeni population eating leaves. The Saudis, with Washington’s GPS support, continue to target school busses, massacring children as an element of the terror assault against the population, trying to break Yemeni resistance by murdering children on school busses. Washington continues to supply the Saudis with the weapons to target school buses and the diplomatic support to protect the criminal Saudi regime from war crimes charges. The European cowards turn their heads. Even Russia is silent. Putin’s “partnership” with the criminal state of Saudi Arabia is more important.

Isn’t this a far greater offense, an offense that most definitely does not lack evidence, than the accusation that Kavanaugh, a nominee to the US Supreme Court attempted to rape a women 30 or 40 years ago, for which there is no evidence, only accusation, an accusation that the female defense atttorney who questioned for the Senate committee the woman claiming abuse found insufficient for an indictment.

Signs the housing bubbles are nearing their end. This article and the next.

• “Dirty Money” Crackdown As Vancouver Housing Market Grinds To A Halt (ZH)

Thanks to an influx of demand from Chinese nationals and other foreigners, Vancouver’s housing market soared in the post-crisis years, with prices more than doubling to levels that were clearly unsustainable, cementing the Pacific Northwest metropolis’ status as the most unaffordable housing market in North America. But the torrid growth ground to a halt earlier this year as home sales plummeted, along with construction of new homes and apartments. The typical single-family home in Vancouver costs more than C$1.5 million ($1.15 million) – roughly 20x the median household income. In an effort to let some air out of one of the continent’s most egregious property bubbles, British Columbia’s government has announced an unprecedented crackdown on money laundering in Vancouver’s property market in an attempt to stop a housing-market collapse from taking the city’s GDP with it.

The initiative, launched by Attorney General Daid Eby, seeks to create more transparency to expose all the “numbered corporations” (often used as fronts for foreign investors) buying property in Vancouver. The probe will also examine horse-racing and luxury car sales. Attorney General David Eby said that his office is launching an independent review into potential money laundering in real estate, horse-racing and luxury car sales. The review comes in response to recommendations from a previous review into money laundering in the province’s casinos. In addition, Finance Minister Carole James has appointed an expert panel to look directly at money laundering in the housing sector. Both probes will be done by March.

“There is good reason to believe the bulk of the cash we saw in casinos is a fraction of the cash generated through illicit activities that may be circulating in British Columbia’s economy,” Eby told reporters Thursday in the capital of Victoria. “We cannot ignore red flags that came out of the casino reviews of connections between individuals bringing bulk cash to casinos, and our real estate market.” […] “Our goal is simple, as you’ve heard: Get dirty money out of our housing market,” James said. “When the real estate market is vulnerable to illicit activity and unethical behavior, people, our communities and our economies suffer. This is something we have to tackle.”

Foreign buyers have carried the boom for years. And now you act?

• May Acts To Tackle Housing Crisis By Imposing Levy On Foreign Buyers (O.)

Foreign buyers of properties in the UK will have to pay a new levy, in a renewed attempt by Theresa May to tackle the housing crisis. With concern growing among senior Tories that the party has allowed Brexit to drown out a compelling domestic agenda, plans unveiled on Saturday night will see foreign buyers pay extra stamp duty to fund a drive to tackle rough sleeping. The announcement marks the start of the party’s conference in Birmingham, where the prime minister is desperate to avoid another row over her Brexit plans that might threaten to engulf her premiership. Ministers are also concerned that the party has been failing to respond to the radicalism of some of Labour’s economic programme, set out at its own conference in Liverpool last week.

On Sunday the prime minister will attempt to return to her vow to tackle social injustices and champion what she describes as the “British dream” – the idea that the next generation should do better than the last. Fixing the housing market is a major part of the programme. It comes as the latest Opinium poll for the Observer suggest the Conservatives take a three-point lead into their conference. Despite being carried out during the Labour conference week, which can often provide a poll bounce, the poll puts the Tories on 39% support, with Labour on 36%. According to Opinium, Labour had entered its conference with a two-point lead.

Just the start.

• Brexit Costing Britain £500m A Week And Rising (O.)

Brexit is already costing the public purse £500m a week, new research has found – a stark contrast to the £350m “dividend” promised by the Leave campaign. The Centre for European Reform’s analysis also suggests that the government’s austerity drive would be on the way to completion had Britain voted to stay in the European Union. It shows that the UK economy is already 2.5% smaller than it would have been had Remain won the referendum. Public finances have been dented by £26bn a year, more than half of the defence budget. This translates to a penalty of £500m a week, a figure that is growing. The stark finding comes as the Tory conference begins in Birmingham, with Theresa May’s premiership under severe strain.

The prime minister faces competing proposals from cabinet ministers over how she should resolve the Brexit impasse with the EU. The febrile conference coincides with explosive claims that the boss of one UK-based carmaker has been flown by private jet to meet President Emmanuel Macron, in an attempt to persuade the company to move manufacturing to France after Brexit. Carolyn Fairbairn, director general of the Confederation of British Industry, told the Observer this development was a sign of the economic damage Britain faces from the wrong Brexit deal. While some cabinet ministers are pushing for a loose, Canada-style trade deal, support is growing in May’s ministerial team and on her backbenches for a deal under which Britain would stay closely tied to the EU for a limited period.

A three way race.

• Steve Bannon Thinks Michael Avenatti Has A Serious Shot In 2020 (ZH)

Former Trump strategist Steve Bannon said on Friday that attorney Michael Avenatti could become the Democratic nominee for president in 2020. Speaking with Bill Maher about the state of the Democratic party, Bannon agreed with the HBO host that Avenatti – lawyer to porn star Stormy Daniels and Judge Brett Kavanaugh’s “gang rape” accuser – can capture the left with his bravado and plain spoken language. “The guy who’s the outsider, who like blows through the regular politician because he looks different and he’s got balls,” said Maher – to which Bannon replied: “If Bernie Sanders had an ounce of Avenatti’s fearlessness, he would have been the Democratic nominee and we would have had a much tougher time beating him.”

“Bernie doesn’t have fearlessness?” asked Maher. “Not like Avenatti,” Bannon replied. “I’ve not done any due diligence on this guy, but I tell you he’s got a fearlessness and he’s a fighter. I think he’ll go through a lot of this field if he decides to stick with it.” “I don’t happen to think a professional politician is going to be there at the end of the day. I’ve always said it’s going to be an Oprah or an Avenatti — somebody who’s more media savvy,” said Bannon. “You’re gonna have Trump on the right, a politician, maybe a Kamala Harris or somebody on the left, and I think you’ll have a Bloomberg or a Romney or somebody in the center,” Bannon concluded. “I think it will be a three-way race.”

Assange is no longer in charge, which makes room for more releases. This is about Germany and France.

• New WikiLeaks Release Exposes Corruption in UAE Arms Deal Fueling War on Yemen

The transparency organization WikiLeaks just released a new document that sheds light on the corruption behind a lucrative French-German arms deal with the United Arab Emirates (UAE), weapons that are currently being used to wage a disastrous and genocidal war against the people of Yemen. The document details a court case from the International Chamber of Commerce (ICC) International Court of Arbitration regarding a dispute over a “commission payment” made to Abbas Ibrahim Yousef Al-Yousef, an Emirati businessman, as part of a $3.6 billion arms deal between France’s state-owned weapons company Nexter Systems (then GIAT Industries SA) and the UAE.

Per the deal, which was signed in 1993 and set to conclude in 2008, the UAE purchased 388 Leclerc combat tanks, 46 armored vehicles, 2 training tanks, and spare parts, as well as ammunition. Those weapons have been an important part of the UAE and Saudi coalition’s war in Yemen since it began in 2015. The war has killed over ten thousand civilians, largely the result of the Saudi/UAE bombing campaign, which has targeted and crippled the country’s civilian infrastructure. The result of those bombings, as well as of the UAE/Saudi blockade of Yemen, has been over 17 million people near starvation – including 5.2 million children – and preventable disease epidemics that have claimed tens of thousands of additional lives.

Big surge in share prices Monday, from whish Musk will profit?

• Musk Out As Tesla Chair, Remains CEO in $40M SEC Settlement (AP)

Tesla and its CEO Elon Musk have agreed to pay a total of $40 million and make a series of concessions to settle a government lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company. The settlement with the Securities and Exchange Commission allows Musk to remain CEO of the electric car company but requires him to relinquish his role as chairman for at least three years. Tesla must hire an independent chairman to oversee the company, something that should please a number of shareholders who have criticized Tesla’s board for being too beholden to Musk. The deal was announced Saturday, just two days after SEC filed its case seeking to oust Musk as CEO.

Musk, who has an estimated $20 billion fortune, and Tesla, a company that ended June with $2.2 billion in cash, each are paying $20 million to resolve the case, which stemmed from a tweet Musk sent on Aug. 7 indicating he had the financing in place to take Tesla private at a price of $420 per share. “A reckless tweet cost a lot of money — the $20-million tweet,” said Michelle Krebs, executive analyst at Autotrader. [..] Tesla’s stock plummeted 14 percent Friday after the SEC filed its lawsuit, erasing more than $7 billion in shareholder wealth. Many analysts predicted the shares were bound to fall even further if Musk had been forced to step down. Tesla’s stock has dropped 30 percent since Aug. 7, closing Friday at $264.77.

The steep downturn in Tesla’s market value may have influenced Musk to have an apparent change of heart and negotiate a settlement. Musk had rejected a similar settlement offer before the SEC sued Thursday, maintaining he had done nothing wrong when he posted a tweet declaring that he had secured the financing to lead a buyout of Tesla.

Serious. Incompetent.

• How Facebook Was Hacked And Why It’s A Disaster For Internet Security (F.)

Facebook dropped a bombshell on Friday when it revealed an unknown hacker had breached the site, compromising the accounts of 50 million users. The company’s security team found three bugs were used in the attacks, saying they were used in combination to successfully break into Facebook accounts. Forbes spoke with professional web app hacker and cybersecurity researcher Thomas Shadwell, who pieced together a likely hypothesis on how the mystery hacker or hackers carried out what’s believed to be the most significant ever attack to have hit the social media beast. The perpetrator’s ultimate aim was to steal what are known as “OAuth bearer tokens.” Essentially, these tokens prove the Facebook user is the rightful owner of an account and denote what they have access to.

As Shadwell describes them: “OAuth tokens are like car keys, if you’re holding them you can use them, there’s no discrimination of the holder.” And in the context of this attack, those keys unlocked not just Facebook accounts, but any site that affected users accessed with a Facebook login. That might include Instagram or news websites. To get those keys, the hackers abused a feature in Facebook called “View As.” It allows any user to see what another can access on their profile. For instance, if you’ve blocked your dad from looking at your photos, you can check it’s working by effectively impersonating your father and viewing your profile. “It looks like when Facebook built the View As feature, they did this by making it a modification of how Facebook would work if actually viewed by that other user,” said Shadwell.

“Which of course means if there’s a mistake they might end up sending the impersonated user’s credentials to the user of the ‘View As’ feature.” This is where things get a bit weirder. If a user, via View As, impersonated a friend who themselves had a friend who had a birthday, the feature would also show a box prompting them to post a “happy birthday” video. Thanks to an error made by Facebook in July 2017, the video provided the user with one of those precious tokens, Shadwell said. More specifically, the video player generated and sent the user a token, one that would log them into the Facebook mobile app as if they were the person they were impersonating via View As. From there the user (in this case a malicious hacker) would have total access over that other person’s account.

Increasingly, the reality of the model shines through.

• Fearing Debt Trap, Pakistan Rethinks Chinese ‘Silk Road’ Projects (R.)

After lengthy delays, an $8.2 billion revamp of a colonial-era rail line snaking from the Arabian Sea to the foothills of the Hindu Kush has become a test of Pakistan’s ability to rethink signature Chinese “Silk Road” projects due to debt concerns. The rail megaproject linking the coastal metropolis of Karachi to the northwestern city of Peshawar is China’s biggest Belt and Road Initiative (BRI) project in Pakistan, but Islamabad has balked at the cost and financing terms. Resistance has stiffened under the new government of populist Prime Minister Imran Khan, who has voiced alarm about rising debt levels and says the country must wean itself off foreign loans.

“We are seeing how to develop a model so the government of Pakistan wouldn’t have all the risk,” Khusro Bakhtyar, minister in Pakistan’s planning ministry, told reporters recently. The cooling of enthusiasm for China’s investments mirrors the unease of incoming governments in Sri Lanka, Malaysia and Maldives, where new administrations have come to power wary of Chinese deals struck by their predecessors. Pakistan’s new government had wanted to review all BRI contracts. Officials say there are concerns the deals were badly negotiated, too expensive or overly favored China. But to Islamabad’s frustration, Beijing is only willing to review projects that have not yet begun, three senior government officials have told Reuters.

Pushed through by EU and US so Balkan can join NATO. Still very contested in Greece.

• FYROM Citizens Go to the Polls to Decide on Name Change (GR)

FYROM citizens are going to the polls today (Sunday) to vote on the referendum on the name change to “Republic of North Macedonia”, as agreed between their government and Greece on June 17. The question of the referendum to which Macedonian voters are asked to answer is: “Are you in favor of membership in NATO and the European Union by accepting the deal between (the) Republic of Macedonia and Republic of Greece?” Opinion polls so far show that a “Yes” in the referendum is most likely, as the majority of the Former Yugoslav Republic of Macedonia citizens are in favor of NATO and EU membership.

However, the question of the Zoran Zaev government is whether the participation is satisfactory. Specifically, 50 percent plus one of registered voters are needed to cast a ballot for the referendum results to be valid. In his referendum campaign, Prime Minister Zoran Zaev stressed the NATO and EU membership prospects for the Balkan country. Meanwhile, opponents, including the country’s president, Gjorge Ivanov, have called for a boycott of the referendum, describing the Prespa agreement with Greece a “flagrant violation of sovereignty.”

A lot of people live there.

• Indonesia Earthquake: Huge Surge In Death Toll (BBC)

At least 832 people were killed in the devastating earthquake and tsunami that hit the Indonesian island of Sulawesi, the national disaster agency says. It added that the affected area was bigger than initially thought. Many people were reported trapped in the rubble of buildings that collapsed in Friday’s 7.5-magnitude earthquake, agency spokesman Sutopo Purwo Nugroho told a news conference. The quake triggered tsunami waves as high as 6m (20ft), he added. Rescuers have been digging by hand in the frantic search for survivors in the city of Palu.

“What we now desperately need is heavy machinery to clear the rubble. I have my staff on the ground, but it’s impossible just to rely on their strength alone to clear this,” Muhammad Syaugi, head of the national search-and-rescue agency, told AFP news agency. There have also been concerns about the town of Donggala, where the impact is still unclear. The Red Cross estimates that more than 1.6 million people have been affected by the earthquake and tsunami which it described as a tragedy that “could get much worse”. Indonesia’s Vice-President Jusuf Kalla said the final death toll could be in the thousands.

Debt Rattle September 29 2018

Sep 292018

September 29, 2018 Posted by Raúl Ilargi Meijer at 9:20 am Finance Tagged with: arctic, Boris, Brexit, Facebook, FBI, inquisition, junk bonds, Kavanaugh, Musk, Tesla, Trump 15 Responses »

M. C. Escher Corte, Corsica 1928

• Trump Orders New FBI Probe Into Kavanaugh Following Senate Request (Ind.)

• The Return Of The Inquisition (Simon Black)

• Fiscal Irresponsibility (Roberts)

• Junk Bonds Set For Record Winning Streak, High Grade Worst Since 2008 (ZH)

• Elon Musk Believed He Had Verbal Deal With Saudis To Take Tesla Private (WSJ)

• Labour Claims Theresa May’s Government ‘The Most Divided Ever’ (Ind.)

• Boris Johnson’s ‘Super Canada’ Alternative Brexit Plan Rubbished (G.)

• Democratizing Brexit (Varoufakis)

• Facebook Says Nearly 50m Users Compromised In Huge Security Breach (G.)

• Melting Arctic Ice Opens New Route From Europe To East Asia (AP)

“This country is being ripped apart here,” Mr Flake told the committee…

• Trump Orders New FBI Probe Into Kavanaugh Following Senate Request (Ind.)

Donald Trump has ordered the FBI to carry out a fresh investigation into his nominee for the Supreme Court, after Republicans were obliged to delay a full confirmation vote after being blind-sided by one of their own senators. During a day of blurred and frequently confusing drama on Capitol Hill, the Senate Judiciary Committee on Friday voted 11-10 to approve Brett Kavanaugh for a confirmation vote in the full senate. But it did so, only after an 11th hour intervention from Jeff Flake, a senator from Arizona, who said his support in the later confirmation vote was dependent on the FBI being given a week to carry out an investigation into Mr Kavanaugh, the subject of sexual assault allegations from several women, all of which he denies.

“This country is being ripped apart here,” Mr Flake told the committee, after a vote scheduled for 1.30pm was delayed. “We ought to do what we can to make sure that we do all due diligence with a nomination this important.” Mr Flake’s deeds sent senior Republicans scrambling to decide how best to proceed. The senate’s Republican chairman, Chuck Grassley, who has long said he did not see the need for an additional investigation into Mr Kavanaugh, said it was the decision of Senate majority leader Mitch McConnell on when to hold the confirmation vote.

Within a matter of hours, Mr Grassley issued a statement saying he would ask the White House to request the FBI carry out an additional background check. Shortly afterwards, White House press secretary Sarah Huckabee Sanders released a statement from the president, which read: “I’ve ordered the FBI to conduct a supplemental investigation to update Judge Kavanaugh’s file. As the senate has requested, this update must be limited in scope and completed in less than one week.”

[..] Mr Flake may have been motivated to act by the words of two protesters who confronted him in a senate elevator after it was initially announced he would back Mr Kavanaugh. “What you are doing is allowing someone who actually violated a woman to sit on the Supreme Court. This is not tolerable. You have children in your family. Think about them. I have two children,” shouted one of the women, Ana Maria Archila. “I cannot imagine that for the next 50 years they will have to have someone in the Supreme Court who has been accused of violating a young girl. What are you doing, sir?”

Plenty angles: … trial by social media…

• The Return Of The Inquisition (Simon Black)

Senator Maize Hirono of Hawaii recently stated, “Not only do women like [Kavanaugh’s accuser], who bravely come forward, need to be heard, but they need to be believed.” By definition this is neither fair nor impartial, and turns the entire process into a Kangaroo Court… which is what the Senate has become. At a certain point yesterday, one Senator introduced multiple pieces of evidence on behalf of the accuser, including ‘expert reports’ that justify her inability to remember details from the assault. This is truly bizarre. These Senators are playing the role of judge in this matter. It seems impossible to do this while simultaneously acting as advocate for the accuser.

Another Senator sat smugly and sanctimoniously, leering down at Brett Kavanaugh and demanding explanations about code words for beer and flatulence that date back to Kavanaugh’s high school days. The fact that a United States Senator would actually consider this important evidence is an utter embarrassment. Another disgusting perversion of justice is that the United States Senate actually felt compelled to negotiate with the accuser about when/how she would testify. For example, the accuser wanted to prohibit certain questions, control who could/could not ask questions, determine the order of witness testimony, etc. This is simply NOT how the justice system is supposed to work.

[..] the saddest part – this manner of Inquisition… trial by social media… has now been condoned and advanced by the United States Senate, an institution whose members have ALL taken a solemn oath to support and defend the Constitution which they are now violating in the worst way. Clearly the Senate is no longer an assembly of kings… but a brood of bickering, immature weaklings. (The only resilience displayed has been from the accused and accuser, both of whom have had to endure insane public scrutiny.) There’s obviously an agenda here.

Perhaps some Senators are trying to win points with the #metoo movement for the upcoming elections. Or they’re intentionally blocking Kavanaugh simply because he is a Trump nominee. Whatever their reasons, they may be victorious in achieving their desired outcome. But it will be a Pyrrhic victory… for it will come at the expense of establishing a dangerous new standard that destroys the most important principles of Justice.

As deficits grow, liquidity is shrinking.

• Fiscal Irresponsibility (Roberts)

Without much fanfare or public discussion, Congress has decided to push the U.S. into deeper fiscal responsibility. Earlier this week, the House passed another Continuing Resolution (CR) to keep the government from “shutting down” prior to the mid-term elections. “The House on Wednesday passed an $854 billion spending bill to avert an October shutdown, funding large swaths of the government while pushing the funding deadline for others until Dec. 7. The bill passed by 361-61, a week after the Senate passed an identical measure by a vote of 93-7.” For almost a decade, Congress has failed to pass, and operate, underneath a budget.

Of course, without any repercussions from voters in demanding that Congress “does their job,” the path to fiscal insolvency continues to grow. The Committee For A Responsible Federal Budget made the following statement: “We’re pleased policymakers have likely avoided a shutdown and actually appropriated most of this year’s discretionary budget on time. But let’s not forgot that Congress did so without a budget and had to grease the wheels with $153 billion to pass these bills. That isn’t function; it’s a fiscal free-for-all.” Of course, with trillion-dollar deficits just around the corner, the negative impact from unbridled spending and debt increases will begin to reverse the positive effects from deregulation and tax reform.

The bigger problem with the $854 billion CR just passed by the House, and awaiting the President’s signature, is that it only covers spending from now until December. Such means that by the time we get the full 2019 budget funded, with the annual automatic increases still in place, we will be looking at more than $2 Trillion in annual spending. Such will require further increases in debt issuance at a time when there are potentially fewer buys of Treasuries readily available. As shown in the chart below, with the major Central Banks reducing their balance sheets simultaneously, some of the more major buyers are being removed from the market. “Central bank balance sheets have shrunk by over half-a-trillion dollars since March. This decrease in global liquidity – in the face of a global slowdown – raises the risk of policy mistakes much higher than is commonly assumed.” – ECRI

Courtesy of your friendly neighborhood central bank.

• Junk Bonds Set For Record Winning Streak, High Grade Worst Since 2008 (ZH)

For the latest confirmation of the upside down market, look no further than corporate bonds where the riskiest, CCC-rated junk bonds are set to make a positive return for the 3rd consecutive year, the longest winning streak since records began in 1997. Not only have the lowest quality junk bonds, those rated CCC or lower, generating respectable absolute returns of 5.8% YTD, they have also outperformed higher quality debt with a 1% total return so far this month, according to Bloomberg and ICE data. Additionally, the lowest rated junk bonds have also outperformed the broader junk bond index, which has returned 1.9% YTD.

And while the key contributor to the outperformance of lowest-rated bonds is demand for, well, higher yielding paper as investors continue to chase returns, a key structural issue has been the lack of HY supply, which at $150 billion YTD is the lowest since 2009. Meanwhile, as investors scramble for any paper that promises a material yield, regardless of underlying fundamentals, investment grade corporate bond returns have, in the worlds of Bloomberg’s James Crombie “fallen from darling to deadbeat.”

Perhaps the biggest risk is that Tesla shares fall and loans have to be rolled over.

• Elon Musk Believed He Had Verbal Deal With Saudis To Take Tesla Private (WSJ)

Tesla Inc. CEO Elon Musk believes he had a verbal agreement in place with Saudi Arabia’s sovereign-wealth fund to help finance a plan to take the auto maker private, according to a person familiar with the matter, a contention that could preview how he will fight regulators’ accusation that he misled shareholders. Musk was sued Thursday by the Securities and Exchange Commission, which alleged that he misled investors when he tweeted last month that he had funding secured to lead a Tesla buyout. The agency, which is seeking to oust Musk from Tesla, said in its complaint that he “knew that he had never discussed a going-private transaction at $420 per share with any potential funding source.”

Musk believes the SEC’s effort is flawed in assuming that a written agreement and fixed price were necessary for a deal, the person said. Musk also thinks regulators aren’t taking into account that Middle Eastern businesses routinely operate using verbal agreements in principle, the person said. In addition, Musk has told people that he could have led a go-private transaction using his own stake in SpaceX, if major Tesla investors were on board. SpaceX is the privately held aerospace firm that Mr. Musk controls and is valued at tens of billions of dollars.

Tory conference soon. Spectacle.

• Labour Claims Theresa May’s Government ‘The Most Divided Ever’ (Ind.)

Labour has accused Theresa May of leading “the most divided government ever” as it released a dossier claiming a third of Conservative MPs have publicly criticised either the government or a Tory colleague within the last year. On the eve of the Conservatives’ annual conference, Labour said more than 100 Tory MPs have recently turned their fire on a colleague or on government policy. The report said 80 per cent of the attacks were directed at Ms May or her government, with 83 MPs having criticised one of the two. The dossier was released as a number of senior Conservatives spoke out against Ms May’s leadership and voiced fears about the prospects of the party.

Much of the criticism outlined in the Labour document relates to Ms May’s Chequers plan for Brexit, which has been widely condemned by both Eurosceptics and Remain supporters on the Tory benches. It has been called “unworkable” by Justine Greening, the pro-European former education secretary, while former Brexit minister Steve Baker said it could lead to a “catastrophic split” in the Conservative Party. Mike Penning, previously seen as an ally of Ms May, described the plan as “dead as a dodo”, and former cabinet minister Priti Patel said it would be “a disaster for our country”. Ms May is facing mounting pressure to ditch the proposals, which are also highly unpopular with Tory members and have been rejected by EU leaders.

EU has already thrown out Chequers.

• Boris Johnson’s ‘Super Canada’ Alternative Brexit Plan Rubbished (G.)

Furious ministers rounded on Boris Johnson for suggesting the UK could renege on its Brexit agreements over the Irish border, calling it unworkable and criticising the former foreign secretary for denouncing agreements made while he was a cabinet minister. The Department for Exiting the European Union issued a defiant statement rejecting Johnson’s alternative, laid out in a 4,000-word Telegraph article, saying it was “not a workable or negotiable plan,” less that two days before the start of the Conservative party conference in Birmingham. Government sources mocked Johnson’s disavowal of the December withdrawal agreement, when he had been part of the cabinet that approved it, dismissing his intervention as “another very lengthy article which doesn’t offer any answers”.

Speaking ahead of the conference, May said the government was on the verge of a Brexit deal, despite admitting after the EU summit in Salzburg that the two sides remained some distance apart on customs and the Northern Irish border. “The right deal is close – and with it the opportunity to make life better for ordinary working people,” she said. But Johnson continued his public intervention with a series of television interviews – his first since quitting over Chequers – criticising the prime minister, warning May that she risked betraying the wishes of leave voters if she persisted with the Chequers deal but stopping short of calling her to go. Johnson told the BBC: “If you stick with Chequers, the electorate of this country will look at what we have produced and think how on Earth was that the outcome of voting leave.”

If people want a second vote, isn’t that democratic?

• Democratizing Brexit (Varoufakis)

As deadlines approach and red lines are redrawn in the United Kingdom’s impending withdrawal from the European Union, it is imperative for the people of Britain to regain democratic control over a process that is opaque and ludicrously irrational. The question is: How? Democracy can never aspire to being more than a work in progress. Decisions made collectively must constantly be reappraised collectively in the light of new evidence. Yet, in the UK’s current circumstances, nothing would be more poisonous to democracy than revisiting Brexit by means of a second referendum.

Both sides, Leavers and Remainers, feel betrayed. Even though Brexit was meant to restore its sovereignty, Parliament has no real say in a process that will mark Britain for decades to come. The Scots and the people of Northern Ireland are hostages to a distinctly English feud that could do them serious damage. The young feel the old have hijacked their future, while the old feel that their accumulated wisdom and legitimate concerns are being ignored by insiders striking bad deals behind closed doors on behalf of vested interests. In short, British democracy is failing its latest and most stringent test.

But a fresh referendum cannot be the answer to the unfolding disaster triggered by the original referendum. In June 2016, a stark choice was available to the people of Britain: leave the EU or stay in. While one can question the wisdom of making such a collective choice via a referendum, the logical coherence of the enterprise was beyond dispute. Once the verdict came in, and the process stipulated by the Treaty of Lisbon’s Article 50 was triggered, no binary yes-or-no choice to steer Britain out of its mess became available. In fact, there are now at least five options that must be collectively appraised.

Oh, yeah, that has them worried. They want their friends spying on you, and nobody else.

• Facebook Says Nearly 50m Users Compromised In Huge Security Breach (G.)

Nearly 50m Facebook accounts were compromised by an attack that gave hackers the ability to take over users’ accounts, Facebook revealed on Friday. The breach was discovered by Facebook engineers on Tuesday 25 September, the company said, and patched on Thursday. Users whose accounts were affected will be notified by Facebook. Those users will be logged out of their accounts and required to log back in. “I’m glad we found this and fixed the vulnerability,” Mark Zuckerberg said on a conference call with reporters on Friday morning. “But it definitely is an issue that this happened in the first place. I think this underscores the attacks that our community and our services face.”

The security breach is believed to be the largest in Facebook’s history and is particularly severe because the attackers stole “access tokens”, a kind of security key that allows users to stay logged into Facebook over multiple browsing sessions without entering their password every time. Possessing a token allows an attacker to take full control of the victim’s account, including logging into third-party applications that use Facebook Login. The security breach comes at a time of significant strife for the social media company, which has faced mounting criticism over issues including foreign election interference, the flow of misinformation, hate speech, and data privacy.

I kid you not: there will be many voices labeling this as ‘opportunity’.

• Melting Arctic Ice Opens New Route From Europe To East Asia (AP)

A Danish-flagged cargo ship has successfully passed through the Russian Arctic, in a trial voyage showing that melting sea ice could potentially open a new trade route from Europe to east Asia. The Venta Maersk made the journey as a one-off trial, said Palle Laursen, the chief technical officer of A.P. Moller-Maersk, the world’s biggest shipping group. The ship, carrying a cargo of frozen fish, arrived in St Petersburg on Friday, after leaving Russia’s Pacific port city of Vladivostok on 22 August. “The trial allowed us to gain exceptional operational experience,” said Laursen, adding the ship had performed well in the unfamiliar environment.

The Northern Sea route could be a shorter journey for ships travelling from east Asia to Europe than the Northwest Passage over Canada because it will likely be free of ice sooner due to climate change. Experts say it could reduce the travel distance from east Asia to Europe from the 21,000 kilometres (13,000 miles) it takes to go via the Suez Canal, to 12,800 kilometres (8,000 miles). This would cut transit time by 10 to 15 days. It’s not the first time a cargo vessel has completed the Russian Arctic route, and Maersk underlined that the journey was “to gain operational experience in a new area and to test vessel systems”. “Currently, we do not see the Northern Sea route as a viable commercial alternative to existing east-west routes,” Laursen said.

Debt Rattle September 28 2018

Sep 282018

September 28, 2018 Posted by Raúl Ilargi Meijer at 9:29 am Finance Tagged with: Assange, austerity, bees, BIS, Borio, Brexit, Corbyn, cycles, Italy, Kavanaugh, Musk, orcas, pot, Senate, Tesla, UBI 5 Responses »

Pablo Picasso Carnival Bistro [Study] 1908

• Well, I Think We Found Our Supreme Court Justice Today… (F.)

• BIS’s Claudio Borio Says the World Economy Is About to Get Very Sick (Auerback)

• Italy Agrees High Public Spending Reforms In Potential Clash With EU (G.)

• Irish Banks’ Loan Losses Hit €140 Billion In 10 Years After Crash (IT)

• Janet Yellen Says It’s Time For “Alarm” As Loan Bubble Runs Amok (ZH)

• Why Do Debt Crises Come in Cycles? (Dalio)

• Elon Musk Tore Up Last Minute SEC Settlement, Decided To Fight Instead (ZH)

• Corbyn Talks With EU Officials Spark Fresh No-Deal Brexit Fears (G.)

• Britain, Ecuador Seeking An End To The Assange Standoff (AP)

• Seattle Judges Throw Out 15 Years Of Marijuana Convictions (BBC)

• Austrian Fruit Grower Sentenced To Prison Over Bee Deaths (AFP)

• Orca ‘Apocalypse’: Half Of Killer Whales Doomed To Die From Pollution (G.)

No, not what I would write. But might as well take an odd approach. One thing that hearing made clear: “..we as a nation are losing our way”.

• Well, I Think We Found Our Supreme Court Justice Today… (F.)

Well, I think we found our Supreme Court Justice today. This should be very good news for Republicans, who seem to be in an awful hurry to get this done quickly. It doesn’t look like we have to wait any longer. Let’s all take a deep breath and step back for a moment. All crazy partisan politics aside, let’s consider the qualities a good justice should have. A good justice should be objective and fair-minded, not guided by strong preconceived opinions. A good justice should be empathetic, not focused on oneself. A good justice should be calm, not angry. A good justice should show grace under pressure, not be easily rattled. A good justice should be even-tempered, not short-tempered. A good justice should be thoughtful, not strident. A good justice should in the face of adversity show courage, not petulance.

There are classic lines from Shakespeare’s The Merchant of Venice about mercy and justice: The quality of mercy is not strained. It droppeth as the gentle rain from heaven Upon the place beneath. At the end of the day good leadership is about temperament. Having the kind of calm demeanor and even temperament that enables one to make sound thoughtful decisions under pressure. Not decisions that are reflexive, impulsive, angry or politically driven. When one thinks of the sea of strident bitter recriminations that have engulfed this whole Supreme Court nomination process, and the partisan political football the Supreme Court has become, it feels like we’ve completely lost sight of what a Supreme Court ought to be. It feels, sadly, like we as a nation are losing our way.

Well, cheer up, the good news at least is I think we found someone today with the right temperament to make a fine Supreme Court Justice. Her name is Christine Blasey Ford.

And it’s the exact same disease.

• BIS’s Claudio Borio Says the World Economy Is About to Get Very Sick (Auerback)

When Claudio Borio speaks, the big bankers and investors, the economics profession, and senior policymakers listen quite carefully—even if his sentiments don’t reach the shores of the popular media. Borio, the chief economist for the Bank for International Settlements (BIS), the central bankers’ central bank, recently remarked on the fragility of the global economy, and suggested that we were on the verge of a significant relapsesimilar to the global crash experienced 10 years ago. Among the parallels he perceives: the proliferation of “collateralized loan obligations (CLOs), which are ‘close cousins’ of the infamous instruments known as collateralized debt obligations, or CDOs, and securities backed by residential mortgages,” the prevalence of which helped to crater the credit system in 2008.

Mindful as central bankers have been about the ready availability of liquidity, they have (as I have written before) omitted to “proactively… [charging] private market participants variable risk premiums commensurate with the risk of the underlying activity they are undertaking when providing credit.” Furthermore, Borio implies that the monetary and fiscal authorities expended excessive efforts toward restoring the status quo ante, instead of directing policy toward broader job creation and income generation, which would place the economy on sounder footing when the next downturn inevitably comes. Finally, the BIS’s chief economist also publicly mooted whether additional “medicine” of the kind that we used last time will be in sufficient supply to respond adequately when the next crisis emerges.

So is Dr. Borio correct in both his diagnosis and concomitant concern about the lack of readily available cures for the prevailing illness? And are there any key omissions in his analysis that could help to mitigate the inevitable relapse that he forecasts?

UBI vs austerity.

• Italy Agrees High Public Spending Reforms In Potential Clash With EU (G.)

The Italian government agreed to a 2019 budget deficit target at 2.4% of GDP on Thursday night in a move that was celebrated by leaders but could bring the heavily indebted country into conflict with the European Union. The economy minister Giovanni Tria succumbed to pressure from the government’s two deputy prime ministers – Luigi Di Maio, the leader of the anti-establishment Five Star Movement (M5S), and Matteo Salvini, who heads up the far-right League – to increase the target in order to pay for election campaign promises such as a universal basic income, flat tax and pension reforms. Tria, an academic who is not affiliated to either party, had been seeking a more conservative 1.9% in order to avoid adding to Italy’s debt pile, which currently stands at around 131% of GDP, the second highest in the eurozone after Greece.

Speculation that Tria would resign has been denied. “There is an accord within the whole government for 2.4%, we are satisfied, this is a budget for change,” Di Maio and Salvini said in a joint statement. Di Maio wrote on Facebook that the agreement marked a historic day and was a victory for Italian citizens, not the government. The means-tested basic income, which will cost €10bn, was a key feature of his party’s election campaign. “For the first time in the history of this country we will erase poverty thanks to the basic income,” he said. “We will finally give a future to the 6.5 million people, who until now have lived in poverty and been completely ignored.”

“..three-quarters of the size of the Irish economy in 2008.”

• Irish Banks’ Loan Losses Hit €140 Billion In 10 Years After Crash (IT)

The State’s main 11 banks and building societies racked up a total of €140 billion in loan losses in the decade since western Europe’s worst property crash, according to data compiled by The Irish Times. That equates to about three-quarters of the size of the Irish economy in 2008. The figures include bad-loan charges that lenders took between 2008 and 2017, as well as losses on the sale of batches of loans to overseas investment firms and the National Asset Management Agency (Nama). As Saturday marks the 10th anniversary of the snap guarantee of the Republic’s banking system, property developer Sean Mulryan and former Central Bank governor Patrick Honohan have warned in interviews with The Irish Times of risks facing the recovering housing market and State finances.

The guarantee of six Dublin-based lenders would cost taxpayers €64 billion in bailouts and tip the State into an international bailout. Foreign-owned Bank of Scotland (Ireland), Ulster Bank and KBC Bank Ireland also required multibillion-euro capital injections from their parents during the financial crisis. The 11 banks’ net loan losses over the past decade amount to €134.2 billion – or 25 per cent of their total 2008 loans – according to the data, compiled from banks’ annual reports and regulatory filings. [..] Only five of the original lenders remain as standalone companies, as the State continues to grapple with the legacy of the crash. Housebuilding is running at half of estimated annual demand for 35,000 homes and banks are still dealing with high levels of distressed loans.

These people only warn when they’ve left the job. While in the job, they do exactly what they later warn against.

“Powell said that “overall vulnerabilities” were “moderate”. He also stated that banks today “take much less risk than they used to”.”

• Janet Yellen Says It’s Time For “Alarm” As Loan Bubble Runs Amok (ZH)

As rates move higher like they are now, the loans – whose interest rates reference such floating instruments as LIBOR or Prime – pay out more. As a result, as the Fed tightens the money supply, defaults tend to increase as the interest expenses rise and as the overall cost of capital increases. And because an increasing amount of the financing for these loans is done outside of the traditional banking sector, regulators and agencies like the Federal Reserve aren’t able to do much to rein it in. The market for leveraged loans and junk bonds is now over $2 trillion. Escalating the risk of the unbridled loan explosion, none other than Janet Yellen – who is directly responsible for the current loan bubble – recently told Bloomberg that “regulators should sound the alarm. They should make it clear to the public and the Congress there are things they are concerned about and they don’t have the tools to fix it.”

As we noted recently, the risks of such loans defaulting are obvious, including loss of jobs and risk to companies on both the borrowing and the lending side. Tobias Adrian, a former senior vice president at the New York Fed who’s now the IMF’s financial markets chief, told Bloomberg: “…supporting growth is important, but future downside risks also need to be considered.” He also stated that regulators had “limited tools to rein in nonbank credit”. But you’d never know this by listening to the Federal Reserve. According to Fed chairman Jerome Powell, during his press conference Wednesday, the Fed doesn’t see any risks right now. Powell said that “overall vulnerabilities” were “moderate”. He also stated that banks today “take much less risk than they used to”.

h/t Tyler. Monopoly on steroids.

• Why Do Debt Crises Come in Cycles? (Dalio)

If you understand the game of Monopoly®, you can pretty well understand how credit cycles work on the level of a whole economy. Early in the game, people have a lot of cash and only a few properties, so it pays to convert your cash into property. As the game progresses and players acquire more and more houses and hotels, more and more cash is needed to pay the rents that are charged when you land on a property that has a lot of them. Some players are forced to sell their property at discounted prices to raise that cash. So early in the game, “property is king” and later in the game, “cash is king.” Those who play the game best understand how to hold the right mix of property and cash as the game progresses.

Now, let’s imagine how this Monopoly® game would work if we allowed the bank to make loans and take deposits. Players would be able to borrow money to buy property, and, rather than holding their cash idly, they would deposit it at the bank to earn interest, which in turn would provide the bank with more money to lend. Let’s also imagine that players in this game could buy and sell properties from each other on credit (i.e., by promising to pay back the money with interest at a later date). If Monopoly® were played this way, it would provide an almost perfect model for the way our economy operates. The amount of debt-financed spending on hotels would quickly grow to multiples of the amount of money in existence.

Down the road, the debtors who hold those hotels will become short on the cash they need to pay their rents and service their debt. The bank will also get into trouble as their depositors’ rising need for cash will cause them to withdraw it, even as more and more debtors are falling behind on their payments. If nothing is done to intervene, both banks and debtors will go broke and the economy will contract. Over time, as these cycles of expansion and contraction occur repeatedly, the conditions are created for a big, long-term debt crisis.

The board is behing Musk. But is that enough? It’s not just the SEC, the DOJ is on the case too.

• Elon Musk Tore Up Last Minute SEC Settlement, Decided To Fight Instead (ZH)

To many it was clear from the beginning: “It’s an easy case,” said Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. “He said in the tweet he had financing, and apparently he didn’t. … It’s about as straightforward as you can get.” And on Thursday afternoon, the SEC confirmed that indeed just those two words blasted to the entire world and contained in Elon Musk’s infamous “funding secured” tweet – it would emerge just days later that funding was not, in fact, secured- would serve as the basis for a securities fraud litigation against Elon Musk; and while Tesla wasn’t named in the suit as a defendant, the SEC is seeking to bar Musk, Tesla’s largest shareholder and its top executive, from serving as an officer or director of any U.S. public company.

It almost didn’t happen that way: according to the WSJ, the SEC complaint only came after a last-minute decision by Musk and his lawyers to fight the case rather than settle the charges. The SEC had crafted a settlement with Mr. Musk—approved by the agency’s commissioners—that it was preparing to file Thursday morning when Mr. Musk’s lawyers called to tell the SEC lawyers in San Francisco that they were no longer interested in proceeding with the agreement, according to people familiar with the matter. After the phone call, the SEC rushed to pull together the complaint that it subsequently filed, the people said. Considering that this is an open and shut case, one wonders if Musk was once again on drugs when he decided that instead of settling, he would fight the charges. Or he simply saw the “playbook” and decided to roll the dice…

In any case, a fighting Elon is just what the SEC – its reputation in tatters after years of not pursuing “big name” stock manipulators – needs to restore its image. The case ranks as one of the highest-profile civil securities-fraud cases in years. Its filing less than two months after the Aug. 7 tweets by Mr. Musk also marks an unusually rapid turnaround by an agency that has been under fire for its perceived failure to promptly bring significant cases in the financial crisis and other episodes. “It means there was not that much investigation they needed to do to get comfortable that it was a case they should bring, but also a case they can win,” said Michael Liftik, a former SEC enforcement lawyer now at Quinn, Emanuel, Urquhart & Sullivan LLP.

“.. he will vote down anything that fails to deliver the same benefits as membership of the single market and customs union.”

• Corbyn Talks With EU Officials Spark Fresh No-Deal Brexit Fears (G.)

Jeremy Corbyn has sparked fresh fears in Brussels of a no-deal Brexit after saying during talks with senior EU Brexit officials that he will vote down anything that fails to deliver the same benefits as membership of the single market and customs union. The Labour leader spent two hours with Michel Barnier, the EU’s chief negotiator, and Martin Selmayr, the most senior official in charge of planning for a cliff-edge Brexit. Emerging from the European commission headquarters, Corbyn said Barnier “was interested to know what our views are in the six tests”, referring to the criteria Labour has said must be met to ensure its MPs back a deal. The EU is increasingly concerned that the UK parliament will vote down any deal put forward by Theresa May.

One of Labour’s tests is that an agreement must offer the “exact same benefits” as membership of the single market and customs union. The Labour leader had initially planned a low-key visit to Brussels to attend the naming of a square in the Belgian capital in honour of the murdered Labour MP Jo Cox. It is understood, however, that the EU’s most senior officials were anxious to hear directly from Corbyn about his party’s plans, and invited him for a session of talks. After meeting Barnier and Selmayr, who is the secretary general of the European commission and in charge of no-deal planning, Corbyn insisted he was “not negotiating” but that there was an informal agreement that both sides would continue to talk.

AP makes an ‘error’ and corrects: “The Associated Press reported erroneously that Assange over the past two years had continued to hack the accounts of politicians around the world. It should’ve said Assange had published material from hacked politicians’ accounts.”

• Britain, Ecuador Seeking An End To The Assange Standoff (AP)

Ecuador’s president said Wednesday that his country and Britain are working on a legal solution for Julian Assange to allow the Wikileaks founder to leave the Ecuadorian Embassy in London in “the medium term.” President Lenin Moreno told The Associated Press that Assange’s lawyers were aware of the negotiations. He declined to provide more details because of the sensitivity of the case. [..] Moreno said his country will work for Assange’s safety and the preservation of his human rights as it seeks a way for him to leave the embassy. “Being five or six years in an embassy already violates his human rights,” Moreno said on the sidelines of the UN General Assembly. “But his presence in the embassy is also a problem.”

Now the rest of the nation. How about New York State?

• Seattle Judges Throw Out 15 Years Of Marijuana Convictions (BBC)

Judges in Seattle have decided to quash convictions for marijuana possession for anyone prosecuted in the city between 1996 and 2010. City Attorney Pete Homes asked the court to take the step “to right the injustices of a drug war that has primarily targeted people of colour.” Possession of marijuana became legal in the state of Washington in 2012. Officials estimate that more than 542 people could have their convictions dismissed by mid-November. Mr Holmes said the city should “take a moment to recognise the significance” of the court’s ruling. “We’ve come a long way, and I hope this action inspires other jurisdictions to follow suit,” he said. Mayor Jenny Durkan also welcomed the ruling, which she said would offer residents a “clean slate.” “For too many who call Seattle home, a misdemeanour marijuana conviction or charge has created barriers to opportunity – good jobs, housing, loans and education,” she said.

Here’s what it will take.

• Austrian Fruit Grower Sentenced To Prison Over Bee Deaths (AFP)

An Austrian fruit grower was handed a rare prison sentence Wednesday for having illegally spread an insecticide which led to the deaths of dozens of neighbouring bee colonies. The 47-year-old man had spread a powerful insecticide called chlorpyrifos over his trees in the Lavanttal area of Carinthia province, at a time when their blossoms were still attracting bees. More than 50 colonies belonging to two neighbouring apiarists perished. The court in the city of Klagenfurt found the fruit grower guilty of “deliberately damaging the environment”, pointing to his experience and role in training others in his field as evidence that he knew the consequences of his actions.

He was sentenced to a year in prison, of which four months will be without probation. Ordered to pay more than 20,000 euros ($23,500) in compensation, he said he will appeal. The court said it hoped the sentence would serve as a deterrent and to remind others that the “use of pesticides needs to strike a balance between the environment and economics”. The widespread use of pesticides has been blamed for a steep rise in deaths among bees and other pollinating insects. In April the EU voted to outlaw the use of certain pesticides from the neonicotinoid family blamed for killing off bee populations.

And we’re still allowing glyphosate? We must insists on precautionary principle.

• Orca ‘Apocalypse’: Half Of Killer Whales Doomed To Die From Pollution (G.)

At least half of the world’s killer whale populations are doomed to extinction due to toxic and persistent pollution of the oceans, according to a major new study. Although the poisonous chemicals, PCBs, have been banned for decades, they are still leaking into the seas. They become concentrated up the food chain; as a result, killer whales, the top predators, are the most contaminated animals on the planet. Worse, their fat-rich milk passes on very high doses to their newborn calves. PCB concentrations found in killer whales can be 100 times safe levels and severely damage reproductive organs, cause cancer and damage the immune system. The new research analysed the prospects for killer whale populations over the next century and found those offshore from industrialised nations could vanish as soon as 30-50 years.

Among those most at risk are the UK’s last pod, where a recent death revealed one of the highest PCB levels ever recorded. Others off Gibraltar, Japan and Brazil and in the north-east Pacific are also in great danger. Killer whales are one of the most widespread mammals on earth but have already been lost in the North Sea, around Spain and many other places. “It is like a killer whale apocalypse,” said Paul Jepson at the Zoological Society of London, part of the international research team behind the new study. “Even in a pristine condition they are very slow to reproduce.” Healthy killer whales take 20 years to reach peak sexual maturity and 18 months to gestate a calf.

PCBs were used around the world since the 1930s in electrical components, plastics and paints but their toxicity has been known for 50 years. They were banned by nations in the 1970s and 1980s but 80% of the 1m tonnes produced have yet to be destroyed and are still leaking into the seas from landfills and other sources.

Photograph: Audun Rikardsen/Science

Older Entries Newer Entries