Nov 142019
 


Pablo Picasso Pitcher of flowers on a table 1942

 

The Impeachment Pantomime (Patrick Lawrence)
The Real Ukraine Controversy: An Activist US Embassy (Solomon)
Trump Impeachment Inquiry: New Claims Amid Public Hearing (BBC)
Trickster Adam Schiff Conjuring ‘Guilt’ Out Of Thin Air (NYPost)
Trump Impeachment Is Blueprint To Overthrow Government From Within (Rives)
Here Are The Payments To Hunter Biden, Leaked From Ukraine (CDMedia)
Lawmaker Posts Cryptic Jeffrey Epstein Message During Impeachment Hearing (G.)
The Holy-Cow Moment for Subprime Auto Loans (WS)
Le Mesurier Gets Cross (Craig Murray)
Greek Refugee Camp For 640 People Is Found To Be Housing 3,745 (G.)

 

 

I have too much to say about the impeachment thing to do it here, I’ll do that separately later. Meanwhile, a few strong commentaries:

The Impeachment Pantomime (Patrick Lawrence)

The impeachment probe starts to take on a certain reek. It starts to look as if contempt for Trump takes precedence over democratic process — a dangerous priority. Sperry quotes Fred Fleitz, a former National Security Council official, thus: “Everyone knows who he is. CNN knows. The Washington Post knows. The New York Times knows. Congress knows. The White House knows…. They’re hiding him because of his political bias.” Here we come to another question. If everyone knows the whistleblower’s identity, why have the corporate media declined to name him? There can be but one answer to this question: If Ciaramella’s identity were publicized and his professional record exposed, the Ukrainegate narrative would instantly collapse into a second-rate vaudeville act — farce by any other name, although “hoax” might do, even if Trump has made the term his own.


There is another half to this burlesque. While Schiff and his House colleagues chicken-scratch for something, anything that may justify a formal impeachment, a clear, documented record emerges of Joe Biden’s official interventions in Ukraine in behalf of Burisma Holdings, the gas company that named Hunter Biden to its board in March 2014 — a month, it is worth noting, after the U.S.–cultivated coup in Kiev. There is no thought of scrutinizing Biden’s activities by way of an official inquiry. In its way, this, too, reflects upon the pantomime of the impeachment probe. Are there sufficient grounds to open an investigation? Emphatically there are. Two reports published last week make this plain by any reasonable measure.

Read more …

Nobody appears to know more about the Ukraine boondoggle than John Solomon. But the Hill seems to have dumped him. He publishes on his own site now.

The Real Ukraine Controversy: An Activist US Embassy (Solomon)

The first time I ever heard the name of U.S. ambassador to Ukraine Marie Yovanovitch was in early March of this year. It did not come from a Ukrainian or an ally of President Trump. It came from a career diplomat I was interviewing on background on a different story. The diplomat, as I recall, suggested that Yovanovitch had just caused a commotion in Ukraine a few weeks before that country’s presidential election by calling for the firing of one of the prosecutors aligned with the incumbent president. The diplomat related that a more senior State official, David Hale, was about to travel to Ukraine and was prepping to be confronted about Yovanovitch’s comments. I remember the diplomat joking something to the effect of, “we always say that the Geneva Convention is optional for our Kiev staff.”

The Geneva Convention is the UN-backed pact enacted during the Cold War that governs the conduct of foreign diplomats in host countries and protects them against retribution. But it strictly mandates that foreign diplomats “have a duty not to interfere in the internal affairs of that State” that hosts them. You can read the convention’s rules here. I dutifully checked out my source’s story. And sure as day, Yovanovitch did give a speech on March 5, 2019 calling for Ukraine’s special anticorruption prosecutor to be removed. You can read that here. And the Ukraine media was abuzz that she had done so. And yes, Under Secretary of State Hale, got peppered with questions upon arriving in Kiev, specifically about whether Yovanovitch’s comments violated the international rule that foreign diplomats avoid becoming involved in the internal affairs and elections of their host country.

Hale dutifully defended Yovanovitch with these careful words. “Well, Ambassador Yovanovitch represents the President of the United States here in Ukraine, and America stands behind her statements. And I don’t see any value in my own elaboration on what they may or may not have meant. They meant what she said.” You can read his comments here. Up to that point, I had focused months of reporting on Ukraine on the U.S. government’s relationship with a Ukraine nonprofit called the AntiCorruption Action Centre, which was jointly funded by liberal megadonor George Soros’ charity and the State Department. I even sent a list of questions to that nonprofit all the way back in October 2018. It never answered.

Given that Soros spent millions trying to elect Hillary Clinton and defeat Donald Trump in 2016, I thought it was a legitimate public policy question to ask whether a State Department that is supposed to be politically neutral should be in joint business with a partisan figure’s nonprofit entity.

Read more …

The one thing that was new in yesterday’s circus was Bill Taylor claiming more third-hand stories.

Trump Impeachment Inquiry: New Claims Amid Public Hearing (BBC)

A top US diplomat told impeachment hearings that President Trump directly asked about a Ukrainian investigation into his Democratic rival Joe Biden. In previously unheard testimony, Bill Taylor, the acting US ambassador to Ukraine, said a member of his staff was told Mr Trump was preoccupied with pushing for a probe into Mr Biden. He was speaking at the first public hearings in the impeachment inquiry. Mr Trump told reporters he did not recall making such comments. Mr Trump is accused of withholding US military aid to Ukraine in order to pressure the country’s new president to publicly announce a corruption inquiry into Mr Biden, among the favourites to take him on in the 2020 presidential race.


[..] During a detailed opening statement, Mr Taylor said a member of his staff had overheard a telephone call in which the president inquired about “the investigations” into Mr Biden. The call was with Gordon Sondland, the US ambassador to the European Union, who reportedly told the president over the phone from a restaurant in Kyiv that “the Ukrainians were ready to move forward”. After the call, the staff member “asked ambassador Sondland what President Trump thought about Ukraine”, Mr Taylor said. Mr Taylor said: “Ambassador Sondland responded that President Trump cares more about the investigations of Biden.” Meanwhile observers and former officials have drawn attention to the security implications of making the call from a restaurant, potentially exposing the conversation to eavesdropping by Russian intelligence.

Read more …

“Thanks to the false charges made by James Comey, John Brennan and others that Trump was a running dog for Vladimir Putin, uniforms and badges are no longer proof of rectitude. Count diminished public trust in those institutions as a lasting legacy of the Obama presidency.”

Trickster Adam Schiff Conjuring ‘Guilt’ Out Of Thin Air (NYPost)

The conclusion has always come first — get Trump — then create a justification by weaving a few thin threads together into a noose. In both cases, the Dems have relied on members of the resistance embedded in the government to serve as the hanging party. Some wear military uniforms while others are in the CIA and FBI. Thanks to the false charges made by James Comey, John Brennan and others that Trump was a running dog for Vladimir Putin, uniforms and badges are no longer proof of rectitude. Count diminished public trust in those institutions as a lasting legacy of the Obama presidency. The main problem now is that, three years after Trump’s election, these constant hair-on-fire screams sound and feel like partisan politics pretending to be apolitical.

The smell of a continuing dirty trick is hard to ignore. Schiff, of course, comes by his current role honestly in the sense that he has been a chief proponent of anything and everything that might turn the public against the president. He insisted that Trump was guilty of collusion for two years before Mueller said otherwise and then continued to say it despite Mueller. But after the special counsel’s public testimony turned out to be the dud of all duds, Russia, Russia, Russia dropped off the earth and Schiff instantly proclaimed Ukraine, Ukraine, Ukraine the new crime of the century. In a rational world, where facts matter and credibility counts, Schiff would already be consigned to history’s dustbin alongside Sen. Joe McCarthy.

Like the infamous red baiter who saw a commie behind every desk, Schiff sees evidence of “high crimes and misdemeanors” every time the president opens his mouth. It’s been that way since before Trump was inaugurated. McCarthy was not burdened by decency, as Army lawyer Joseph Welch famously noted. Schiff is similarly unburdened and so he, too, willy-nilly ruins lives and trashes reputations without a sense of guilt. Speaker Nancy Pelosi is no less culpable. In the early months after she got the gavel, she skillfully pushed back against the tide of radicalism sweeping through her party. Repeatedly, she insisted that impeachment was extremely divisive, should only be a last resort and had to have bipartisan support.

Those were her red lines, and she violated all of them. Her resolution for a formal inquiry got zero GOP votes and the public support for removing Trump is essentially limited to her party’s voters. There is no national emergency that would justify such an extreme action, and yet she gave Schiff the green light.

Read more …

Jenna Ellis Rives is a member of the Donald Trump 2020 advisory board. She is a constitutional law attorney.

Trump Impeachment Is Blueprint To Overthrow Government From Within (Rives)

The House is ready to begin public hearings this week, furthering the partisan move by the Democrats to impeach President Trump in a blatant abuse of constitutional authority. Representative Adam Schiff said in a press conference, “These open hearings will be an opportunity for the American people to evaluate the witnesses for themselves and also to learn firsthand about the facts of the president’s misconduct.” There are several problems with this statement. First, Schiff is already characterizing the outcome of the investigation. As the chairman of the House Intelligence Committee, he serves as a key arbiter of the inquiry under the resolution. As such, he is in a position that demands an unbiased irreproachable ethic in evaluating requests for subpoenas and testimony.

Any judge in a similar position would be required to recuse himself with even a hint of the pure bias Schiff has displayed, including coordination with the Ukraine whistleblower and other actions. The Democrats do not even pretend that their impeachment game is fair or actually about fact finding. This is simply about using a grant of power in the Constitution arbitrarily and politically, outside the bounds of due process and the purpose of that authority. Although the House does have the “sole power” of impeachment, that is a grant of jurisdiction, not a license to proceed on purely partisan motivation. Article One must work coordinately and not inconsistently with Article Two, which provides the legal basis upon which a sitting president may be impeached.

Second, Schiff demonstrates this is all about media play in the court of public opinion. Voters have no power or responsibility in an impeachment proceeding. The drafters of the Constitution intended the impeachment and removal process to be exercised only when there was sufficient evidence that the subject of the impeachment had committed a legally qualifying offense. This is not about whether impeachment is popular in the polls or whether a majority of Americans prefer it. Transparency in the context of this quasi judicial process is to provide fundamental fairness and due process for the president. Why are the Democrats so hellbent on blatantly refusing to allow Republican subpoenas and witnesses?

It is because it is a sham. Yet the Democrats are openly admitting that their goal is to try this in the media and attempt to dishonestly convince us that somehow we too should hate Donald Trump. They are hoping to convince us not to vote for him. That is not a legitimate or constitutional purpose of an impeachment. It is rather ironic that they claim his “crime” is an alleged quid pro quo to gain political advantage, while they are manipulating the power of impeachment for their political advantage. It is Schiff and other Democrats like House Speaker Nancy Pelosi who should be impeached. There is an actual constitutional basis for that.

Read more …

And the series keeps going on.

Here Are The Payments To Hunter Biden, Leaked From Ukraine (CDMedia)

The information below has been leaked from the Ukrainian General Prosecutor’s office and acquired from intelligence sources within Ukraine; it is part of investigative materials acquired during an investigation into Biden corruption. As CD Media has reported previously, the National Anti-Corruption Bureau Of Ukraine (NABU) has succeeded in shutting down all investigations into Hunter Biden, Joseph Biden, Burisma owner Mykola Zlochevskiy, former Ukrainian President Petro Poroshenko, and former Polish President Aleksander Kwasniewskiy. NABU is controlled by Obama/Soros linked operatives and was created to coverup Democrat, Biden, Deep State, State Department corruption during the Obama Administration and the years after in which this cabal went after duly-elected President Trump.

Prosecutors who desire the information to get out in spite of the Deep State’s efforts to prevent such a release and prevent investigations to continue, have leaked to CD Media. The highlighted sections describe: According to the Department of Financial Monitoring (Counter-intelligence) of Latvia, the following sums of money were obtained from Busima Holding Limited (Cyprus) to the account of Burisma Holding Limited (Cyprus) which is open at AS PrivatBank in Latvia: money transfer of 14 655 982 US Dollars and 366 015 EUR from the company “Wirelogic Technology AS”, and 1 9 64 375 US dollars from “Digitex Organization LLP” based on the credit agreements. (Note: credit agreements here mean “intra-company” transactions to decrease the taxes to be paid or “credit agreement” also serve as means of hidden dividend payments).


Further, the part of the sums described above, the money was transferred to Alan Apter (302 885 EUR), Alexander Kwasniewski (1 150 000 EUR), Devon Archer and Hunter Biden. Additional information was leaked: BURISMA HOLDINGS LIMITED during a period from 18th November 2014 to 16th November 2015 transacted 45 money transfers through MORGAN STANLEY SMITH BARNEY LLC in the sum of 3.5 mln US Dollars. The recipient of the money transfer is the company Rosemont Seneca Bohai LLC (belongs to Devon Archer). Note: The company belongs to Devon Archer and Kerry Family including Kerry Senior, Kerry Junior, Heinz Jr and Hunter Biden. Devon Archer, Kerry Jr, Heinz Jr and Hunter Biden are listed as partners in Rosement Seneca Fund, Rosemont Seneca Partners and affiliated Rosemont Seneca other companies.

Read more …

“EPSTEIN DIDN’T KILL HIMSELF”

Lawmaker Posts Cryptic Jeffrey Epstein Message During Impeachment Hearing (G.)

Conspiracy theories have abounded ever since Jeffrey Epstein’s death in a New York jail was ruled a suicide, with figures on the right and left claiming he was murdered. On Wednesday, a US congressman weighed in with his own cryptic message. Republican Paul Gosar, a staunch conservative from Arizona, issued a series of 23 tweets over a roughly eight-hour period railing against the Democrats’ impeachment investigation of Donald Trump. Taken together, the first letter of each tweet spells: “EPSTEIN DIDN’T KILL HIMSELF”. As the first public impeachment hearing got under way, it was unclear what prompted the timing of Gosar’s message. Asked whether it was intentional, his communications director, Ben Goldey, replied with an equally cryptic comment:

All of the tweets pertained to testimony from today’s hearing.

Rest assured, they are substantive.

Every one of them.

All of them.

5 were brilliant.

1 was ok.

Zealous Twitter users picked up on the original message, which was easy to miss as it was couched in standard-issue rightwing complaints: “No quid pro quo”, “Democrats are desperate”, “Hillary Clinton and the DNC funded a foreign spy”. A few hours later, however, Gosar’s account posted Goldey’s comment with the first letter of each line bolded, making the message clear.

Read more …

Yeah, Jay Powell, very strong economy.

The Holy-Cow Moment for Subprime Auto Loans (WS)

Serious auto-loan delinquencies – auto loans that are 90 days or more past due – in the third quarter of 2019, after an amazing trajectory, reached a historic high of $62 billion, according to data from the New York Fed today. This $62 billion of seriously delinquent loan balances are what auto lenders, particularly those that specialize in subprime auto loans, such as Santander Consumer USA, Credit Acceptance Corporation, and many smaller specialized lenders are now trying to deal with. If they cannot cure the delinquency, they’re hiring specialized companies that repossess the vehicles to be sold at auction. The difference between the loan balance and the proceeds from the auction, plus the costs involved, are what a lender loses on the deal.

The repo business, however, is booming. But delinquencies are a flow: As current delinquencies are hitting the lenders’ balance sheet and income statement, the flow continues and more loans are becoming delinquent. And lenders are still making new loans to risky customers and a portion of those loans will become delinquent too. And now the flow of delinquent loans is increasing – and this isn’t going to stop anytime soon: These loans are out there and new one are being added to them, and a portion of them will be defaulting. Total outstanding balances of auto loans and leases in Q3, according to the New York Fed’s measure (higher and more inclusive than the Federal Reserve Board of Governors’ consumer credit data) rose to $1.32 trillion:

Read more …

Upon the death of White Helmets co-founder James Le Mesurier, Murray lists some 20 UK journalists who all follow the Twitter account of “Philip Cross”, which has only ever retweeted things without posting one original tweet. “Philip Cross”, though, has changed Wikipedia pages for 2,987 consecutive days, and made dozenns of changes to Le Mesurier’s page in the 24 hours after his death.

Le Mesurier Gets Cross (Craig Murray)

This week, on the day of Le Mesurier’s death, “Philip Cross” made 48 edits to Le Mesurier’s Wikipedia page, each one designed to expunge any criticism of the role of the White Helmets in Syria or reference to their close relationship with the jihadists. “Philip Cross” has been an operation on a massive scale to alter the balance of Wikipedia by hundreds of thousands of edits to the entries, primarily of politically engaged figures, always to the detriment of anti-war figures and to the credit of neo-con figures. An otherwise entirely obscure but real individual named Philip Cross has been identified who fronts the operation, and reputedly suffers from Aspergers. I however do not believe that any individual can truly have edited Wikpedia articles from a right wing perspective, full time every single day for five years without one day off, not even a Christmas, for 2,987 consecutive days.


I should declare here the personal interest that “Philip Cross” has made over 120 edits to my own Wikipedia entry, including among other things calling my wife a stripper, and deleting the facts that I turned down three honours from the Crown and was eventually cleared on all disciplinary charges by the FCO. I hazard the guess that at least several of the above journalists follow “Philip Cross” on twitter because they are a part of the massive Wikipedia skewing operation operating behind the name of “Philip Cross”. If anybody has any better explanation of why they all follow “Philip Cross” on twitter I am more than willing to hear it.

Read more …

“Nine unaccompanied girls were sleeping on the floor in a 10 metre sq container next to the police office, with no bathroom or shower.”

Greek Refugee Camp For 640 People Is Found To Be Housing 3,745 (G.)

An EU-funded refugee camp on the Greek island of Samos built to house 640 people is home to 3,745, with unaccompanied children forced to sleep on the floor of windowless and overcrowded containers, an official audit has revealed. Other children were found to be living in makeshift tents or in derelict buildings on the outskirts of the camp in what the special report from the European court of auditors described as “dire conditions”. “Seventy-eight unaccompanied minors were in tents or abandoned derelict houses outside the hot spot, in unofficial extensions to the facility,” the auditors said. “Nine unaccompanied girls were sleeping on the floor in a 10 metre sq container next to the police office, with no bathroom or shower.”


The situation at Greek facilities on Samos and at the island of Lesbos are described as “highly critical in terms of capacity and the situation of unaccompanied minors”, due to a failure of the bloc’s relocation and return scheme for migrants coming to Europe from countries such as Syria. The auditors’ findings were echoed on Wednesday in appeals made by the mayor of Samos, Georgios Stantzos, who warned of riots due to the “primitive” conditions. Last month, a fire broke out in the camp after a brawl in town between rival groups of Syrians and Afghans.

Read more …

 

 

 

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Nov 032019
 
 November 3, 2019  Posted by at 6:43 pm Finance, Primers Tagged with: , , , , ,  5 Responses »


Nelly’s Tzistarakis Mosque in Monastiraki Square, Athens c1930

 

It’s been too long, way too long since I wrote about our Athens fund, I know, and I apologize. It’s just that for the longest time, things were too unclear and changing too fast for me to write an article. I was waiting for things to settle down to a point where I could have faith they weren’t going to turn upside down again within days or weeks. Well, we finally seem to have reached such a point. But again, I know it has taken too long.

 

In -mostly- chronological order, here’s what happened. In early 2017, I had a meeting with Konstantinos Polychronopoulos, the man I -and the very generous Automatic Earth readers- had been financially supporting since 2015 in his O Allos Anthropos organization to feed homeless and refugees in Greece.

At that meeting, Konstantinos had promised to bring the administration he said he had kept about what the money had been spent on. But instead, he started rattling off what he could remember off the top of his head. Which was impressive, but that was not the issue. He had told me numerous times he had it all on paper, but it was not true. And I knew it was not something lost in translation either.

It wasn’t that he had spent it on himself or kept it in a box, I checked that with as many people as I could, and I could see how he lived. That wasn’t it. He was simply disorganized. And he somehow thought he had the right to be. Because after all, he was the boss. And that’s true enough, it was his idea and organization. But being the boss doesn’t give you the right to say things that are not true, when tens of thousands of euros have been donated to you and your project.

Being the boss comes with obligations attached, and he apparently didn’t like those. A boss needs to look ahead, organize, delegate, make sure there’s continuity, be careful of how he treats employees, who in his case were all volunteers to boot. He did none of that, not structurally. It’s one thing that all that money lands where it is needed, but it’s another where tomorrow’s money will come from. Things a boss must have his eye on.

I had said many times that he could not continue to count on my readers for that money, that I thought at some point it would be enough. I drew up a plan to address the Greek diaspora in New York, Boston, Melbourne, Sidney etc., for financial help, for instance through their Chambers of Commerce. And I said I would always be there to help, but that I was not going to do it alone. Not speaking Greek would have disqualified me anyway.

But nothing came of that. There was never a serious effort. I had not expected that. In hindsight I think maybe it was because he saw it as a challenge to his authority, to have to communicate in a language he didn’t speak. That he couldn’t play the boss over that.

Long story short, as 2017 went on, I didn’t see how I could continue my involvement with the project. I couldn’t ask for donations to someone who rejected all accountability. But then just as I was about to say I quit, two things happened.

 


Monastiraki Sqaure. The same mosque as in the 1930s picture above. It hasn’t been used as a mosque for a very long time. In the background on the hill, the Akropolis.

 

The first was that I increasingly heard about dissatisfaction among the people who worked with/for Konstantinos, with the way he ran things. They didn’t want to continue any more than I did. That led the people who run the ‘kitchen’ in Monastiraki Square, which had always been my main meeting point with everyone, to declare themselves independent of O Allos Anthropos (it took quite some time, but they did).

Monastiraki had always been part of the entire set-up, but also separate. It was run by my friend Tassos -longtime translator between Konstantinos and I- and his friend Filothee, partner of famed Greek singer Antonis Vardis, who died of cancer in 2014 but had always supported Konstantinos. By the end of 2017, I decided I would try and continue to support at least them.

They insisted from the start on not ever having to handle money, because they didn’t like the way Konstantinos had. And they came up with a clever plan for it; more on that in a minute.

The second thing that happened in late 2017 was that I received an email from a Greek man -let’s call him ‘Mark’- who said he was living abroad with his wife and young children but planning to move -back- to Greece, and he wanted to help me with a lot of money. We mailed to and fro for a bit, he sounded credible, and in March 2018 I went back to Athens to meet him (a few days before he was bound to leave again for 6 weeks).

The meeting went fine, we kept mailing, and in June 2018 we took the first step in that ‘clever plan’. Tassos and Filothee had set up a deal with a local supermarket chain in which they would receive ‘coupons’, or ‘checks’ for an amount I would pay to the supermarket. No cash. Mark chipped in some money as well. This still works fine to this day, and everyone’s happy with it. When Filothee needs food, she gets it in bulk and pays with coupons. This is what they look like:

 

 

But then the strangest thing happened. ‘Mark’ disappeared, I think it was August. I’ve never seen him again. And I’m still thinking today: why would you do such a thing? Why all the time spent on the mails and meetings and promises and then nothing anymore? Why not just say: sorry, I don’t have the money, or I don’t want to any longer, or well, anything? Why just vanish? Just a few words would have been enough.

Other than that, though, things appear to be running well right now. I paid for another €1,000 worth of coupons this July and handed them to Filothee, and she still has quite a few left. Less fun is that Tassos last year moved to Shanghai. His wife is from there and his construction business for large projects went belly up in Athens, where there are no large building projects. He was over in August, but left again. Plenty big projects in China.

Not that we sit still, either. The gang has decided to start a second kitchen in the port of Piraeus, because they saw the need there. Filothee explained that in Monastiraki, most people who come for food have a roof over their head, but it’s often six to a single room without electricity or water. No amenities, they can’t cook their own food. In Piraeus, they feed ‘real’ homeless.

The new rightwing government has approved new asylum laws that make it much easier to evict refugees. They are also evicting squatters from buildings across the city, many of them refugees, who are now taken to camps, that are still beyond squalid. Some people face a six year waiting time for their asylum requests. Not that Greece can be blamed for too much, it’s the EU that is failing terribly. Greece is simply the outer border of the union.

Camps and islands are insanely overcrowded, Turkey sends more people across the Aegean again, and winter is coming. Nor is there much that anyone can do to help in that situation, because after 5 years that help has been fully institutionalized through the hanky-panky between Brussels, Athens and the NGOs, and very little of the money involved gets to where it belongs.

We gave it our shot, Konstantinos despite his shortcomings really tried, and we did manage to achieve lots of stuff, but some problems are just too big. We’re talking thousands, tens of thousands of people even, and more keep on coming all the time, and at some point that requires not a band of good willing folk but a society, a government, or something even bigger than that. And that’s where it all goes wrong. It always does.

But we still try, with all our faults. We don’t have millions or even billions, but we can still help people. And so that’s what we do. Filothee does, I do, and I’m sure Konstantinos does as well, though I haven’t seen him in a long time. It’s just what you do.

 

 

And now it’s time to move on to the part that I’m really bad at, and which has kept me for ages from writing this article: asking for donations. Not donations for Greece, I can do that, but those for the Automatic Earth itself, debanked and perhaps going under. I tried to explain that a few days ago already, that the way sites like this are funded has changed irrevocably in my view.

Google and Facebook take all the money and everyone else can take a hike. Unless the Automatic Earth disappears behind a paywall (which I don’t want) OR our readers start chipping in more than they have. Easily more than 5,000 people read the Automatic Earth each day, so at 5 cents a day -and what is 5 cents?- we’d be fine. But it doesn’t work that way. People are used to free.

Still, I don’t want to confuse the two, Greece and the site itself, too much. Then again, I have spent a lot of time here in Athens over the past years, and that isn’t free -I pay double rent for half the year-, and my personal presence here is greatly appreciated by the people who run the Monastiraki kitchen. As they expressed in the note you can see below. They appreciate that it’s not just a check being sent, but I go visit them all the time to see how things are going.

Anyway, I’m obviously still bad at this. So if you’re inclined to donate to either the Automatic Earth or the Monastiraki kitchen, or both, you figure it out. Put us on your Christmas charity list and be generous, be part of helping out those who have least. You may read raving pieces on Greece and Athens and tourism and Airbnb, but this is still a very challenging place for all but the rich.

What I would like to do is to hand Filothee another $1,000 in coupons before I leave for Christmas, that should be sufficient for both kitchens -Monastiraki and Piraeus- until I get back in spring. And I promise it won’t be this long again between articles.

Thank you so much for making this all possible.

 

 

 

 

For donations to the Monastiraki kitchen and the Automatic Earth, the Automatic Earth has a Paypal widget on our front page, top left hand corner, and a Patreon one top right hand corner. On our Sales and Donations page, there is an address to send money orders and checks if you don’t like Paypal. Our Bitcoin address is 1HYLLUR2JFs24X1zTS4XbNJidGo2XNHiTT. For other forms of payment, drop us a line at Contact • at • TheAutomaticEarth • com.

To tell donations for Monastiraki apart from those for the Automatic Earth (which badly needs them too!), any amounts that come in ending in either $0.99 or $0.37, will go to the social kitchen.

 

Please give generously.

 

 

A list of the articles I wrote before about our support for homeless and refugees in Athens.

June 16 2015

The Automatic Earth Moves To Athens

June 19 2015

Update: Automatic Earth for Athens Fund

June 25 2015

Off to Greece, and an Update on our Athens Fund

July 8 2015

Automatic Earth Fund for Athens Makes First Donation

July 11 2015

AE for Athens Fund 2nd Donation: The Man Who Cooks In The Street

July 22 2015

AE Fund for Athens: Update no. 3: Peristeri

Nov 24 2015

The Automatic Earth -Finally- Returns To Athens

Dec 25 2015

Help the Automatic Earth Help the Poorest Greeks and Refugees

Feb 1 2016

The Automatic Earth is Back in Athens, Again

Mar 2 2016

The Automatic Earth for Athens Fund Feeds Refugees (Too)

Aug 9 2016

Meanwhile in Greece..

Nov 28 2016

The Other Human Needs Your Help This Christmas

Dec 21 2016

The Automatic Earth in Greece: Big Dreams for 2017

Mar 23 2017

The Automatic Earth Still Helps Greeks and Refugees

Dec 24 2017

The Automatic Earth for Athens Fund – Christmas and 2018

 

 

 

 

 

 

 

Oct 152019
 
 October 15, 2019  Posted by at 7:29 pm Primers Tagged with: , , , , , , ,  8 Responses »


Rembrandt van Rijn Self portrait with tousled hair 1629

 

If you ask me, this is brilliant, but I know you’re not asking me. Still, what I’m reading today is genius. That is, Donald Trump and his people have found a way to communicate with Vladimir Putin and his people while the entire crew that’s listening in to his talks with foreign leaders were doing something else, whatever that may be.

The overall impression of Trump’s order to redeploy an entire 50 US soldiers within Syria is that he opened the floodgates to mayhem and genocide, but perhaps that picture is not entirely accurate. Perhaps Trump did not act on some whiff of the moment instinct. Perhaps he’s not as shallow and stupid as the press makes him out to be. I know, big challenge and all, but let’s look at what actually happened.

Me, I’m sure Trump talked to Putin before he withdrew the 49 or 50 troops , just to make sure all-out disaster wouldn’t ensue. This is from Newsweek, not exactly a pro-Trump outlet:

US Cedes Syrian City To Russia In Battlefield ‘Handover’ As Turkey Tries To Take It

The U.S. was scheduled as of Monday to officially withdraw from Manbij within 24-hours, leaving the mostly Kurdish Syrian Democratic Forces behind as two rival factions—the Syrian government, backed by Russia and Iran, and the Turkey-backed Syrian insurgents opposed to it—sought to seize control of the strategic location. A senior Pentagon official told Newsweek that U.S. personnel, “having been in the area for longer, has been assisting the Russian forces to navigate through previously unsafe areas quickly.”


“It is essentially a handover,” the official said. “However, it’s a quick out, not something that will include walk-throughs, etc., everything is about making out with as much as possible of our things while destroying any sensitive equipment that cannot be moved.” Contacted by Newsweek on Monday, no reply was returned from the Pentagon before publication. Faced with a potentially imminent clash with Turkish forces and their Syrian rebel allies, the Syrian Democratic Forces have chosen to realign themselves with the central government and its Russian backer, a partnership that would soon be put to the test.

I don’t claim to know how the two presidents manage to communicate in the face of all the scrutiny (re: Trump’s call with Ukraine president Zelensky), but communicate they did. Or we would never have arrived at the outcome we have. Trump, I’m convinced, did not leave the Kurds to die at the hand of Erdogan. He got Putin involved. And yes, that means Russia strengthening its position in Syria.

But it also means Trump being able to fulfill his campaign promise to withdraw US troops from “endless wars”. And Russia may well be the best bet to prevent further mayhem and bloodshed in the region. See, Syria, as I’ve said a million times by now, is Russia’s only stronghold in the Middle East, and they will therefore never let go of it. Not a chance.

That is the reason why the insane US policy of regime change in Iraq, Libya, etc., was never going to work in Syria. Syria = Russia. Not because Putin is a big admirer of Assad, but because without Syria Russia is gone from the Middle East. So, zero chance. A bit more from the BBC:

Russia Vows To Prevent Turkey-Syria Clashes

Russia has said it will not allow clashes between Turkish and Syrian forces, as Turkey’s military offensive in northern Syria continues. “This would simply be unacceptable… and therefore we will not allow it, of course,” said Moscow’s special envoy for Syria, Alexander Lavrentyev. The withdrawal of US troops from the region, announced last week, gave Turkey a “green light”, critics say. Russia is a key military ally of Syrian leader Bashar al-Assad. Russia’s defence ministry said its forces, which have been deployed in Syria since 2015, were patrolling along the “line of contact” between Syrian and Turkish forces.


During a visit to the United Arab Emirates, Mr Lavrentyev described Turkey’s offensive as “unacceptable”. He said that under previous agreements Turkey can only go 5-10km (3-6 miles) into Syria – far less than the 30km “safe zone” Ankara is proposing – and that Turkey has no right to permanently deploy its troops in the country. Syria is in contact with Turkey to avoid a conflict, he said. Mr Lavrentyev also confirmed that Russia had helped to broker a deal between Kurds and Damascus that saw Kurdish-led forces cede territory to Syrian government troops in return for military support.

All the talk about Erdogan genociding the Kurds is, well, greatly exaggerated. His hands are tied. By Trump, who has warned him with a threat of obliterating his economy, and far more by Putin who simply states some things are not acceptable.

The outcome of all this is going to be that Turkey will have its safe zone on the Syrian border, just smaller than Erdogan wants. The Kurds will have their territory just behind that safe zone. Millions of Syrian refugees will be able to resettle in these two territories. It is a pretty genius solution to the whole issue. US troops, gone, Russia and Assad keeping the peace, no 3.6 million refugees coming to Europe.

And you were saying Trump is an idiot who leaves the Kurds to be slaughtered? You see, I’m never sure about anything, but I’m having to doubt that judgment. That’s not what I’m seeing.

But, you know, I am big time wondering what channels Trump and Putin have found to talk to each other. It’s not phone calls, given how the Zelensky call led to an alleged impeachment inquiry, but how have they managed to do it? Shouldn’t be all that hard, perhaps, just a friend talking to a friend under the radar. But still.

 

 

 

 

Oct 092019
 


Vilhelm Hammershoi Woman Seen from the Back 1888

 

White House Says It Will Refuse To Cooperate With Impeachment Inquiry (R.)
Oh My God, They Killed CNY! You Bastards (Every)
Powell Says The Fed Will Start Expanding Its Balance Sheet ‘Soon’ (CNBC)
Boris Johnson Facing No-Deal Brexit Cabinet Rebellion (R.)
EU May Offer To Extend Deadline For Brexit Deal To June (G.)
Brexit Is A Necessary Crisis, Reveals Britain’s True Place In The World (G.)
Time To Reassess CrowdStrike’s Credibility (Kelly)
Jeffrey Epstein Accuser Expands Lawsuit Against Estate, Alleged Enablers (R.)
Refugee Explosion “Greater” Than 2015 To Hit Europe – German Minister (ZH)

 

 

Tried hard to find a nonpartial view, but that just gets harder all the time.

White House Says It Will Refuse To Cooperate With Impeachment Inquiry (R.)

The White House said on Tuesday it would refuse to cooperate with an “illegitimate, unconstitutional” congressional impeachment inquiry, setting Republican President Donald Trump on a collision course with the Democratic-led U.S. House of Representatives. Hours after the administration abruptly blocked a key witness in the Ukraine scandal from testifying to congressional panels, White House lawyer Pat Cipollone criticized the decision by lawmakers to proceed with an impeachment inquiry without a full House vote. “You have designed and implemented your inquiry in a manner that violates fundamental fairness and constitutionally mandated due process,” he said, adding House Democrats had left Trump “no choice.”


“To fulfill his duties to the American people, the Constitution, the Executive Branch and all future occupants of the Office of the Presidency, President Trump and his administration cannot participate in your partisan and unconstitutional inquiry under these circumstances,” he said. [..] White House lawyer Cipollone described the probe as “a naked political strategy” that violated Trump’s due process rights and was designed to reverse the 2016 presidential election and influence the November 2020 election. “Your transparent rush to judgment, lack of democratically accountable authorization, and violation of basic rights in the current proceedings make clear the illegitimate, partisan purpose” of the inquiry, he said.

Read more …

Brilliant both from Michael Every of Rabobank and the South Park crew.

“Like the NBA, we welcome the Chinese censors into our homes and into our hearts. We too love money more than freedom and democracy.”

Oh My God, They Killed CNY! You Bastards (Every)

”The upcoming ‘Top Gun 2’ stars Tom Cruise, still trying to look like he did in the 1980s, but no longer able to do all his own stunts: which is just like US foreign policy “ [..] the most honest commentary on where we now stand under globalisation comes not from the eschatological of intellectuals or politicians telling us democracy is under threat and free trade is great, not spotting Marxist and populist criticism that the two are linked; instead it comes from the scatology of ‘South Park’.[..] the most honest commentary on where we now stand under globalisation comes not from the eschatological of intellectuals or politicians telling us democracy is under threat and free trade is great, not spotting Marxist and populist criticism that the two are linked; instead it comes from the scatology of ‘South Park’


So is the US flailing or retreating like the Romans? No. It is focusing on its mighty financial weapons and physically fighting where it can achieve what matters most…if one is not thinking about Iran, but China. As Trump underlined: “WE WILL FIGHT WHERE IT IS TO OUR BENEFIT, AND ONLY FIGHT TO WIN.” Where does it benefit most fighting, globally? Three guesses… The greatest likelihood is still that if Trump gets past his latest tipping point then at some (tipping) point soon markets are going to cry “Oh my God, they killed CNY!” as the Chinese currency collapses.

Read more …

As Big As Japan.

Powell Says The Fed Will Start Expanding Its Balance Sheet ‘Soon’ (CNBC)

The Federal Reserve will soon start growing its balance sheet again, a response in part to the jolt to overnight lending markets in September, Chairman Jerome Powell said Tuesday. How the Fed will go about expanding the securities it holds will be explained in the coming days, though Treasury bill purchases will be involved, the central bank chief said during a speech in Denver, though Powell stressed the approach shouldn’t be confused with the quantitative easing done during and after the financial crisis. “This is not QE. In no sense is this QE,” he said in a question and answer session after the speech.


On monetary policy more broadly, Powell stuck to his recent script: He and his fellow policymakers view the economy as being strong but susceptible to shocks, particularly from a global slowdown, trade and geopolitics like a potentially messy Brexit. He said the Fed stands committed to supporting the recovery but is data dependent and not on a preset course of cutting rates. The Fed has reduced its benchmark rate twice in 2019 and is expected to approve a third cut late this month.

Read more …

The EU likes this.

Boris Johnson Facing No-Deal Brexit Cabinet Rebellion (R.)

British Prime Minister Boris Johnson is facing a new rebellion from his cabinet over concerns of a no-deal Brexit, with a group of cabinet ministers poised to resign, The Times newspaper reported on Wednesday. Culture Secretary Nicky Morgan, British Minister for Northern Ireland Julian Smith, Justice Secretary Robert Buckland, Health Minister Matt Hancock and Attorney General Geoffrey Cox are all on a “resignation watch list”, according to The Times report An unnamed cabinet minister cited by the newspaper said that a “very large number” of Conservative members of parliament will quit if it comes to a no-deal Brexit.


The Times said that ministers had warned Johnson in a cabinet meeting about the “grave” risk of the return of direct rule in Northern Ireland and raised concerns about Dominic Cummings, Johnson’s most senior adviser. “Cabinet will set the strategy, not unelected officials. If this is an attempt to do that then it will fail”, the report quoted another cabinet minister as saying. The report comes as the European Union accused Britain of playing a “stupid blame game” over Brexit after a Downing Street source told Reuters a deal was essentially impossible because German Chancellor Angela Merkel had made unacceptable demands.

Read more …

“What’s at stake is not winning some stupid blame game,” Tusk wrote in a tweet directed at the prime minister.”

EU May Offer To Extend Deadline For Brexit Deal To June (G.)

The European Union is poised to extend Brexit talks into as late as next summer after the European council and commission presidents dismissed Boris Johnson’s strategy as a “blame game”. A “range of dates” will now be in play at the meeting of European leaders next week but sources suggested the natural cut-off date would be June. With an extension of the UK’s EU membership now looking inevitable, other diplomatic sources suggested an unlikely outlier for an end date could even be ahead of a possible general election so as to force the Commons into accepting a deal. “But politicians like to keep things off their plates for as long as possible and so pushing it longer seems more realistic,” a senior EU diplomat said.

The negotiations over a deal are said to be effectively dead in Brussels after Downing Street’s extraordinary claims over the substance of a phone call between the German chancellor, Angela Merkel, and the UK prime minister. Merkel was said by an unnamed UK source to have told Johnson that Northern Ireland had to stay in the EU’s customs union. The official claimed that as a consequence a deal looked “essentially impossible, not just now but ever”. Tusk, the European council president, gave an insight into the frustration at the anonymous briefings over the Merkel call, the alleged content of which described by senior politicians in Berlin as “improbable”. The chancellor’s spokesman declined to comment on “confidential conversations”.


“What’s at stake is not winning some stupid blame game,” Tusk wrote in a tweet directed at the prime minister. “At stake is the future of Europe and the UK as well as the security and interests of our people. You don’t want a deal, you don’t want an extension, you don’t want to revoke. Quo vadis? [Where are you going?]” [..] In Berlin Detlef Seif, the point person on Brexit for Merkel’s party, the CDU, rejected the account given by Downing Street of the call between the two leaders. He said: “In my mind it is completely improbable that the phone call between Merkel and Johnson took place in the way it has been reported in the British media. “It would run counter to all the principles the German government has followed for the last three years, namely that the negotiations are led by the European commission.

Read more …

“It brings to light, in stunning clarity, Brexiters’ deluded political understanding of the UK’s place in the world.”

“..without it we will remain stuck in the delusional, revivalist politics of a banana monarchy.”

Brexit Is A Necessary Crisis, Reveals Britain’s True Place In The World (G.)

Today much of the capital in Britain is not British and not linked to the Conservative party – where for most of the 20th century things looked very different. Once, great capitalists with national, imperial and global interests sat in the Commons and the Lords as Liberals or Conservatives. Between the wars, the Conservatives emerged as the one party of capital, led by great British manufacturers such as Stanley Baldwin and Neville Chamberlain. The Commons and the Lords were soon fuller than ever of Tory businessmen, from the owner of Meccano toys to that of Lyons Corner Houses.

After the second world war, such captains of industry avoided the Commons, but the Conservative party was without question the party of capital and property, one which stood against the party of organised labour. Furthermore, the Tories represented an increasingly national capitalism, protected by import controls, and closely tied to an interventionist and technocratic state that wanted to increase exports of British designed and made goods. A company like Imperial Chemical Industries (ICI) saw itself, and indeed was, a national champion. British industry, public and private, was a national enterprise.

Since the 1970s things have changed radically. Today there is no such thing as British national capitalism. London is a place where world capitalism does business – no longer one where British capitalism does the world’s business. Everywhere in the UK there are foreign-owned enterprises, many of them nationalised industries, building nuclear reactors and running train services from overseas. When the car industry speaks, it is not as British industry but as foreign enterprise in the UK. The same is true of many of the major manufacturing sectors – from civil aircraft to electrical engineering – and of infrastructure. Whatever the interests of foreign capital, they are not expressed through a national political party. Most of these foreign-owned businesses, not surprisingly, are hostile to Brexit.


[..] Brexit is a necessary crisis, and has provided a long overdue audit of British realities. It exposes the nature of the economy, the new relations of capitalism to politics and the weakness of the state. It brings to light, in stunning clarity, Brexiters’ deluded political understanding of the UK’s place in the world. From a new understanding, a new politics of national improvement might come; without it we will remain stuck in the delusional, revivalist politics of a banana monarchy.

Read more …

High time. But is asking questions about CrowdStrike impeachable?

Time To Reassess CrowdStrike’s Credibility (Kelly)

Days before the Senate voted to confirm Brett Kavanaugh last year, a former FBI assistant director appeared on MSNBC to suggest the Supreme Court nominee had a major credibility problem. “This is not…an investigation about the sexual allegations, I think it really has moved toward credibility,” Shawn Henry, an NBC News analyst, told Nicolle Wallace on October 1, 2018. “At this point now, there are very clear allegations, and subsequent to the judge’s testimony, people have come out who appear to be credible who…appear to be contradicting his testimony sworn before the United States Senate.” Henry, clearly reciting Democratic talking points to imply Kavanaugh perjured himself before the Senate Judiciary Committee during his September showdown with Christine Blasey Ford, also referred to Ford as a “victim” and claimed that the FBI’s investigation into Kavanaugh’s testimony had “fallen short.”

Henry was presented to viewers as the channel’s “national security analyst,” but there was one title the network overlooked: Shawn Henry is a top executive for CrowdStrike, the cybersecurity firm hired by the Democratic National Committee to investigate the infamous hack of its email system in early 2016. Perhaps not coincidentally, the firm determined that the Russians were behind the intrusion. CrowdStrike’s June 2016 assessment remains the sole source of evidence to supply the pretext of the government’s Russian election interference claim; later, it would help bolster the Trump-Russia collusion fable. [..] Henry, the president of CrowdStrike’s Washington operation, is a regular contributor to both MSNBC and NBC News programs. (His affiliation with CrowdStrike, however, is never mentioned.)

Although he hasn’t worked for the FBI since 2012, Henry often weighs in as an FBI “expert,” opining on a variety of political issues from government shutdowns to the Kavanaugh debacle. Curiously, his views always come down on the side opposite of Donald Trump and the Republican Party. In March 2017, Henry—who worked for Robert Mueller’s FBI during Barack Obama’s first term—participated in a post-inauguration forum to discuss the implications of Russia’s “hacking” the 2016 presidential election. The panel also featured former Hillary Clinton campaign manager John Podesta and Marc Elias, the general partner at Perkins Coie, a politically-influential law firm based in D.C.. It was a symbolic trio. Perkins Coie hired CrowdStrike in the spring of 2016 on behalf of the DNC.


Instead of going directly to the FBI or other law enforcement agency about the breach, Democratic party leaders, working through Perkins Coie, retained CrowdStrike to find the culprits. Very cozy. But that wasn’t Perkins Coie’s only involvement in the Russia-hacked-the-election plotline. The law firm also hired Fusion GPS—who in turn hired British political operative Christopher Steele to author his infamous dossier—on behalf of the Clinton campaign and the DNC around the same time Perkins retained CrowdStrike. According to disclosure reports, the DNC paid Perkins Coie $7.2 million during the 2016 election cycle: The PAC also paid CrowdStrike more than $400,000 during the same time period. (The DNC has paid CrowdStrike nearly $80,000 so far this year.)

Read more …

#I’mWithHer.

Jeffrey Epstein Accuser Expands Lawsuit Against Estate, Alleged Enablers (R.)

A New York woman who said Jeffrey Epstein began grooming her for sex when she was 14 and later raped her expanded her lawsuit against his estate, naming several women who allegedly enabled the financier’s abuses and seeking to block the estate from shielding his assets from victims. In her amended complaint filed on Tuesday, Jennifer Araoz accused four women by name who once worked with Epstein of misconduct, and added more than 20 corporate defendants associated with the late financier. Araoz, 32, wants “justice not just against Mr. Epstein’s estate, but the network of enablers that surrounded him, and the network of corporate interests that surrounded him,” her lawyer Daniel Kaiser told reporters on a conference call.

“Every penny of his estate should be available to satisfy the claims of victims,” he added. Epstein, 66, died by hanging himself in his Manhattan jail cell on Aug. 10, two days after signing a will and putting his estimated $577 million estate into a trust. Kaiser said it would be obvious to any judge that this was a fraudulent effort to keep his money away from victims. The four women include Ghislaine Maxwell, Epstein’s longtime confidante; Lesley Groff, a former secretary; Cimberly Espinosa, a former executive assistant; and Rosalyn Fontanilla, a former maid who died in October 2016. All but Fontanilla are named as defendants.


Araoz accused the defendants of conspiring to identify and procure a steady stream of underage girls for Epstein to sexually abuse. The defendants “participated with and assisted Epstein in maintaining and protecting his sex trafficking ring, ensuring that approximately three girls a day were made available to him for his sexual pleasure,” the amended complaint said.

Read more …

It’s already started.

Refugee Explosion “Greater” Than 2015 To Hit Europe – German Minister (ZH)

The German government is warning that a number of indicators suggest Europe could be on the brink of witnessing a new refugee crisis explode on its borders. Germany’s Interior Minister Horst Seehofer said early this week that refugees and migrants are set to flood Europe on a scale even bigger that the peak of the 2015 crisis. “We must do more to help our European partners with controls on the EU external borders. We have left them alone for too long,” he told Germany’s Bild am Sonntag newspaper after returning from a visit to Greece and Turkey, where he inspected the renewed refugee crisis first hand. “If we do not do that we will once again face a refugee wave like in 2015 or maybe even greater,” Seehofer warned ominously.

Seehofer further said that if the EU doesn’t unite to find “strength to solve this problem problem” it faces total “loss of control” if and when the next major crisis hits. At the height of the crisis three years ago, which was driven by the vastly destabilizing wars in Syria and Libya, and by the turmoil left in the wake of the Islamic State caliphate in western Iraq, there were near weekly mass drownings and accidents involving migrants attempting to traverse the Mediterranean, as well as fires and unrest at makeshift refugee camps in France and Greece. It further created turmoil in the domestic politics of multiple EU countries, with a number of right-wing populist figures and parties coming to power on anti-illegal immigration platforms.


And now, with Turkey on the brink of a major military incursion into northeast Syria, the Middle East is about to witness a major new conflagration resulting in potentially millions of new refugees being pushed out of the Turkey-Syria border region. Coupled with that, Turkey’s President Erdogan recently threatened to release one million refugees on Europe if he can’t have his so-called ‘safe zone’ which is to reach some 30km deep (19 miles) inside Syrian territory. He threatened early last month: “We will be forced to open the gates. We cannot be forced to handle the burden alone,” while demanding that European countries give political support to the controversial plan that would end in annexing UN member Syria’s sovereign territory.

Read more …

 

 

 

 

Oct 052019
 


Pablo Picasso Head of a bearded man 1940

 

Democrats Subpoena White House For Ukraine Documents (ZH)
2nd Whistleblower May File Complaint About Trump/Ukraine: New York Times (RawS)
House Democrats Target Pence Over Ukraine; Peddle Fiction Over ‘Favor’ (ZH)
Newly Released Rosenstein Emails Reveal Crusade To Investigate Trump (ZH)
Do You Have a Lisance for that Minky? (Kunstler)
Boris Johnson Brexit Plan Hangs By Thread As EU Dismisses Weekend Talks (G.)
China Has No Room for Dissenting Friends (FP)
PayPal Becomes First Member To Exit Facebook’s Libra Association (R.)
Regulators Weigh ‘Startle Factors’ For Boeing 737 MAX Pilot Training (R.)
Boeing Crash Victims’ Lawyer To Seek Testimony From 737 MAX Whistleblower (R.)
Greece Needs To Face Reality About Asylum Seekers (HRW)
Air Pollution And Human Health Impacts Of Cryptocurrency Mining (SD)

 

 

This is not how US election campaigns used to look.

Democrats Subpoena White House For Ukraine Documents (ZH)

Just one day after President Trump dared House Speaker Nancy Pelosi to hold an impeachment inquiry vote – a move which would open Democrats up to Republican subpoenas, House Democrats slapped the White House with a subpoena first. Addressed to acting White House Chief of Staff Mick Mulvaney, the subpoena demands documents and communications related to the case being constructed against Trump – namely that his request that Ukraine investigate former Vice President Joe Biden and his son for corruption constitutes election interference and endangered national security. Of note, the Justice Department concluded that Trump’s phone call with Zelensky did not violate campaign finance law.

“How the White House, which has routinely rejected congressional requests for information, responds to the demands for documents could significantly shape the impeachment investigation going forward. Under normal circumstances, the White House could claim materials referred to in both requests were privileged, using that as a defense in court.” -New York Times. What Democrats aren’t pursuing, by the by, is anything resembling due diligence on Biden – the (still) leading Democratic candidate trying to fend off accusations of nepotism in Ukraine and China while abusing his office as Vice President. As we noted earlier Friday, Vice President Mike Pence was hit with a subpoena as well over, demanding information on “any role you may have played” in helping with the Ukraine effort against Biden.


Pence press secretary Katie Waldman said “given the scope, it does not appear to be a serious request but just another attempt by the ‘Do Nothing Democrats’ to call attention to their partisan impeachment.” Pelosi and House Intelligence Committee Chairman Adam Schiff (D-CA) have warned that failure to comply with subpoenas will be viewed as obstruction of Congress – which the Times says is “itself a potentially impeachable offense.” “The White House has refused to engage with — or even respond to — multiple requests for documents from our Committees on a voluntary basis,” reads the subpoena, demanding information by October 15. “After nearly a month of stonewalling, it appears clear that the president has chosen the path of defiance, obstruction, and cover-up.”

Read more …

Also CIA.

2nd Whistleblower May File Complaint About Trump/Ukraine: New York Times (RawS)

President Donald Trump’s impeachment inquiry continues to grow, according to a bombshell new report in The New York Times. “A second intelligence official who was alarmed by President Trump’s dealings with Ukraine is weighing whether to file his own formal whistle-blower complaint and testify to Congress,” The Times reported, citing two people briefed on the matter. “The official has more direct information about the events than the first whistle-blower, whose complaint that Mr. Trump was using his power to get Ukraine to investigate his political rivals touched off an impeachment inquiry,” the newspaper explained. “The second official is among those interviewed by the intelligence community inspector general to corroborate the allegations of the original whistle-blower, one of the people said.”


“A new complaint, particularly from someone closer to the events, would potentially add further credibility to the account of the first whistle-blower, a C.I.A. officer who was detailed to the National Security Council at one point,” the newspaper noted. “Whistle-blowers have created a new threat for Mr. Trump. Though the White House has stonewalled Democrats in Congress investigating allegations raised in the special counsel’s report that Mr. Trump obstructed justice, the president has little similar ability to stymie whistle-blowers from speaking to Congress.”

Read more …

If both Trump and Pence are impeached, Nancy Pelosi is next in line to become president.

But the Dems won’t get any documents until they hold a House vote.

House Democrats Target Pence Over Ukraine; Peddle Fiction Over ‘Favor’ (ZH)

House Democrats on Friday roped Vice President Mike Pence into their investigation into whether President Trump “jeopardized national security” by asking Ukraine to investigate what looks like obvious corruption by former Vice President Joe Biden and his son Hunter. In a letter from Democratic House Committee Chairs Eliot Engel (NY), Adam Schiff (CA) and Elijah Cummings (MD), Pence is given a deadline of October 15 to turn over all documents related to President Trump’s April 21 and July 25 phone calls with Ukrainian President Volodymyr Zelensky. The letter also requests all communications between administration officials regarding the calls, as well as information concerning Trump attorney Rudy Giuliani’s efforts to investigate or pressure Ukraine to investigate the Bidens.


Of note, the letter danced around a popular lie about the call between Trump and Zelensky: According to the record, President Trump stated, “I would like you to do us a favor though.” He also stated, “I would like to have the Attorney General call you or your people and I would like you to get to the bottom of it.” The letter then jumps to a transcript of the July 25 phone call in which Trump said: “There’s a lot of talk about Biden’s son, that Biden stopped the prosecution and a lot of people want to find out about that so whatever you can do with the Attorney General would be great.” Meanwhile, House Democrats purposely conflate Trump’s “favor” – which was actually for the investigation of the DNC servers involving their contractor Crowdstrile – and the Biden investigation.

 

If Pence refuses to comply, the chairmen say it “shall constitute evidence of obstruction” in their impeachment inquiry. For those keeping track – Rep. Schiff lied when he said his office had no contact with the whistleblower (which earned him ‘four Pinocchios’ from the Washington Post). Schiff also fabricated a quote from the Trump-Zelensky call which he read during an official hearing. And now, he and two other House Democratic chairs are doing their best narrative shaping by misrepresenting more facts.

Read more …

Not looking good.

Newly Released Rosenstein Emails Reveal Crusade To Investigate Trump (ZH)

New emails obtained through a Freedom of Information Act (FOIA) lawsuit reveal the details surrounding communications between Deputy Attorney General Rod Rosenstein and Robert Mueller in the days leading up to the former FBI Director’s appointment as special counsel in the Russia probe. Mueller would go on to assemble a team comprising “13 Angry Democrats” as Trump called them, due to their obvious animus towards the president. According to the 145 pages of documents obtained by Judicial Watch, Rosenstein and Mueller were discussing just three days after President Trump fired former FBI Director James Comey, and ostenisbly for some time before that.


“The boss and his staff do not know about our discussions,” Rosenstein wrote Mueller on May 12, 2017 as the two tried to nail down a time for their next conversation. Four days later on May 16- the day before Mueller’s appointment, Rosenstein told former Bush administration Deputy Attorney General and current Kirkland & Ellis Partne, Mark Filip “I am with Mueller. He shares my views. Duty Calls. Sometimes the moment chooses us.” “And on May 17 Rosenstein appointed former FBI Director Robert Mueller to investigate Russian meddling in the 2016 presidential election. Also, during the same time period, between May 8 and May 17, Rosenstein met with then-acting FBI Director Andrew McCabe and other senior Justice Department FBI officials to discuss wearing a wire and invoking the 25th Amendment to remove President Trump.” -Judicial Watch

Read more …

“..that claque of lesser monsters who cooked up the coup to overthrow the president, and botched the job.”

Do You Have a Lisance for that Minky? (Kunstler)

[..] what if it turns out that there actually is no Whistleblower, that the figure was just a fiction, a CGI figment cooked up by Adam Schiff, his lawyers, and sundry other players on the Deep State bench? Sounds outlandish perhaps, but I wouldn’t put it past the congressman from Hollywood. We’ll find out soon enough. Meanwhile, it appears that the purported Whistleblower and his chief handler, Intelligence Community Inspector General (ICIG) Michael Atkinson failed to observe the proper procedures in reporting the complaint through channels, not to mention the legerdemain of sketchy paperwork that attested to the complaint.

Remember who Michael Atkinson is: the former legal counsel to John P. Carlin, who was Assistant Attorney General for National Security during the origin months of the RussiaGate operation in the summer of 2016, and before that chief of staff to… wait for it… Robert Mueller, when he was FBI Director. Do you begin to detect a claque of senior bureaucrats scrambling to cover each other’s ass? Interesting days ahead as this feculent blob of malfeasance creepy-crawls through the spooky weeks of October, climaxing in Halloween. These are the weeks when the DOJ Inspector General’s report on FISA court shenanigans comes down. It’s also the month of the Brexit Absolute Deadline.


That hairball over in Old Blighty might seem of unconcern over here, but it contains enough explosive power to destabilize the European banking system and, with it, America’s, which would lead to some rather scary action in the bond and equity markets at exactly the time of year when accidents like that happen. And then, deeper in the background, like Hades and Thanatos, stand the grave figures of Barr and Durham, whose very silence lo these many months must be giving the vapors to that claque of lesser monsters who cooked up the coup to overthrow the president, and botched the job.

Read more …

“..no basis for such discussions, given the British prime minister’s insistence on there being a customs border on the island of Ireland.”

Boris Johnson Brexit Plan Hangs By Thread As EU Dismisses Weekend Talks (G.)

Boris Johnson’s Brexit plans look to be falling apart as the European commission said there are no grounds to accept a request from the UK for intensive weekend negotiations two weeks before an EU summit. EU sources said there was no basis for such discussions, given the British prime minister’s insistence on there being a customs border on the island of Ireland. Johnson’s chief negotiator, David Frost, along with a team of a dozen British officials, failed to convince their EU counterparts in Brussels on Friday that he had a mandate from Downing Street to compromise on what the EU sees as major flaws in the UK government’s proposals. Frost had been seeking to rescue the British prime minister’s proposed deal after it was strongly criticised.


The EU’s chief negotiator, Michel Barnier, had told diplomats on Thursday evening that the British needed to “fundamentally amend their position”. A European commission spokeswoman said: “We have completed discussions with the UK for today. We gave our initial reaction to the UK’s proposals and asked many questions on the legal text. “We will meet again on Monday to give the UK another opportunity to present its proposals in detail.” The spokeswoman added that the proposals did not “provide a basis for concluding an agreement”. An EU official said: “The UK often asks for meetings to keep [the] process going; we agree we should leave no stone unturned. But there is nothing useful that could be done this weekend.”

Read more …

Muslim silence on Uighurs.

China Has No Room for Dissenting Friends (FP)

In July this year, 22 Western-aligned countries issued a joint statement to the high commissioner of the United Nations’ Human Rights Council objecting to China’s abuses against the Uighur Muslim minority in Xinjiang province. That’s not unusual: The reports of human rights abuses in the province are coming out thick and fast, and Western countries are more than happy to raise concerns against such abuses, whether out of genuine concern, domestic virtue signaling by political leaders, or the use of any available stick to whack a geopolitical rival.

What was remarkable was the 37 countries issuing a counter letter praising China’s human rights record, from humanitarian luminaries including such as Syria, Myanmar, and North Korea. More interestingly, about half of the signatories of this letter were Muslim-majority countries. If the issues had been about Palestinians or even the Rohingya, one might expect the usual cynical domestic virtue signaling by political leaders around the well-worn claims of Muslim solidarity. Instead, they chose to loudly broadcast their support for Beijing’s policy of eradicating the old Islamic culture of the ancient Silk Road gateway to the Chinese heartland in Xinjiang.


The calculation of such leaders, from Turkish President Recep Tayyip Erdogan to Mohammed bin Salman, the de facto head of government of Saudi Arabia, the custodian of the Two Holy Mosques, is well understood and publicized: “Muslim solidarity” is a convenient and effective slogan to be thrown at domestic audiences, but if your national economy—and the personal profits of the elite—depends on the goodwill of Beijing, then you must defer to China’s supposedly sovereign right to do as it pleases within its borders, and forget about the umma.

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Won’t be the last.

PayPal Becomes First Member To Exit Facebook’s Libra Association (R.)

U.S. payments processor PayPal said on Friday it was leaving Libra Association, the entity managing the Facebook-led effort to build global digital currency Libra, making it the first member to exit the group. PayPal said it would forgo any further participation in the group and would instead focus on its own core businesses. “We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future,” PayPal said in a statement. In response, Geneva-based Libra Association said it was aware of the challenges lying ahead in its attempts to “reconfigure” the financial system.


“The type of change that will reconfigure the financial system to be tilted towards people, not the institutions serving them, will be hard. Commitment to that mission is more important to us than anything else. We’re better off knowing about this lack of commitment now, rather than later”, Libra Association said in a statement. Facebook declined to comment.

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Now it’s ‘pilot overload’. And software of course. But the pilots were not overloaded, the hardware didn’t work.

Regulators Weigh ‘Startle Factors’ For Boeing 737 MAX Pilot Training (R.)

Global regulators are looking at “startle factors” that can overwhelm pilots as they consider revised protocols for the Boeing 737 MAX, Nicholas Robinson, the head of civil aviation for Transport Canada, told Reuters on Friday. Boeing Co’s fastest-selling jetliner, the 737 MAX, was grounded worldwide in March after two fatal crashes that killed a total of 346 people within five months. Pilot overload appears to have played a role in both crashes, in which crews struggled to regain control of the airplane while a new flight control system repeatedly pushed the nose down amid a series of other audio and sensory alarms and alerts. “What we need to do is ensure that the aircrew in the MAX are able to handle that environment,” Robinson said in an interview with Reuters.

Transport Canada is among a core group of regulators that is evaluating the requirements for the 737 MAX to fly again after a seven-month grounding. It has been convening weekly by phone, video conferences or face-to-face with the U.S. Federal Aviation Administration and its counterparts in the European Union and Brazil, Robinson said. Their decisions could lead to sweeping changes to pilot flight operating manuals and classroom instruction and even mandates for costly simulator training, industry sources have said. However, no training decisions can be made until Boeing submits software updates to the FAA for review and approval, Robinson said.


Transport Canada is closely aligned with the European Union Aviation Safety Agency on return to service demands and has also raised questions over the architecture behind the 737 MAX’s angle of attack system. “We continue to look for a solution proposed by the manufacturer and the FAA on that area,” he said. Still, Canada’s goal is for the MAX to return in countries across the globe simultaneously, or at least in close succession. “It’s not a necessity, but it’s a goal,” Robinson said.

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What is it about October and whistleblowers?

Boeing Crash Victims’ Lawyer To Seek Testimony From 737 MAX Whistleblower (R.)

An attorney representing families of passengers killed in a Boeing Co 737 MAX crash in Ethiopia said on Friday he will seek sworn evidence from a Boeing engineer who claims the company rejected a proposed safety upgrade to the 737 MAX because it was too costly. The engineer, Curtis Ewbank, said the upgrade could have reduced risks that contributed to two fatal crashes in Indonesia and Ethiopia that together killed 346 people, according to two people familiar with the complaint. Ewbank filed the complaint through internal Boeing channels after the March crash of Ethiopian Airlines flight 302, the sources said. The sources described the complaint to Reuters, but Reuters has not seen a copy of the complaint.


Managers rejected the proposed upgrade from Ewbank’s team of engineers, called synthetic airspeed, on the basis of “cost and potential (pilot) training impact,” according to the Seattle Times, which first reported the complaint on Wednesday. Robert Clifford, the lead counsel representing families of victims from the Ethiopian Airlines crash, said in an email the complaint raises fresh concerns about Boeing’s culture and whether the company placed too great an emphasis on cost and schedule at the expense of safety. He said he would take steps to depose Ewbank as quickly as possible.

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Things are getting out of hand again. Hundreds of refugees daily, courtesy of Erdogan. A right wing government is not going to help. Still a dumb headline though.

Greece Needs To Face Reality About Asylum Seekers (HRW)

The Greek islands are under the spotlight again, as a new wave of tragic events has hit asylum seekers trapped there. On 29 September, a big fire broke out in Moria – the notorious camp on the island of Lesbos – killing one woman, and injuring at least nine more people, including a baby, the health ministry reported. On 24 September, a truck killed a five-year-old Afghan boy who was playing just outside Moria. The number of asylum seekers crossing the Aegean from Turkey is also increasing. With camps already overcrowded, conditions are horrific for asylum seekers and migrants trapped there. According to the government’s most recent figures, 26,753 women, men and children live in camps designed for about 6,300. The number has almost doubled since June.


But while the numbers have increased, neither the horrible conditions nor the flawed policies that cause them are new. Underinvestment, a poorly functioning asylum system, and a deliberate policy choice to confine asylum seekers to islands has left thousands trapped there for months or years in inhuman and degrading conditions. Forcing migrants and asylum seekers to remain on the islands was ostensibly to expedite their return to Turkey under the March 2016 EU-Turkey deal. But on 11 September, Gerald Knaus, head of a research organisation whose ideas inspired the EU-Turkey deal, wrote that: “The situation on Greek islands is unacceptable, the asylum system on the verge of collapse. This is a moment of truth.”

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Abstract of an academic study published at Science Direct.

Air Pollution And Human Health Impacts Of Cryptocurrency Mining (SD)

Cryptocurrency mining uses significant amounts of energy as part of the proof-of-work time-stamping scheme to add new blocks to the chain. Expanding upon previously calculated energy use patterns for mining four prominent cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Monero), we estimate the per coin economic damages of air pollution emissions and associated human mortality and climate impacts of mining these cryptocurrencies in the US and China. Results indicate that in 2018, each $1 of Bitcoin value created was responsible for $0.49 in health and climate damages in the US and $0.37 in China.


The similar value in China relative to the US occurs despite the extremely large disparity between the value of a statistical life estimate for the US relative to that of China. Further, with each cryptocurrency, the rising electricity requirements to produce a single coin can lead to an almost inevitable cliff of negative net social benefits, absent perpetual price increases. For example, in December 2018, our results illustrate a case (for Bitcoin) where the health and climate change “cryptodamages” roughly match each $1 of coin value created. We close with discussion of policy implications.

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The child who is not embraced by the village will burn it down to feel its warmth.

– African proverb

 

 

 

 

Sep 272019
 


Salvador Dali Self-portrait in the studio 1919

 

These Once-Secret Memos Cast Doubt On Joe Biden’s Ukraine Story (Solomon)
Democrats Reveal the Real Purpose of the Impeachment Investigation (PCR)
Chelsea, Reality Hope New Approval Of Whistleblowers Will Set Them Free (Onion)
Wall Street To Dems: We’ll Sit Out, Or Back Trump, If Warren Nominated (CNBC)
Fed Will Need To Grow Its Balance Sheet ‘Permanently’ – Morgan Stanley (CNBC)
US Annual Health Insurance Costs Hit Record High Above $20,000 (BBG)
Quarter Of UK Rural Businesses ‘Could Be Bankrupted By No-Deal Brexit’ (G.)
China’s Giant $400 Billion Iran Investment Complicates US Options (F.)
Yemen’s Houthis Are Bringing Down A Goliath (Escobar)
Spanish Security Company Spied On Julian Assange In London For US (El Pais)
Trump Administration Proposes Historically Low Refugee Limit (AP)

 

 

John Solomon’s account is really important in the impeachment hearings.. And everything he says is documented.

Watched quite a lot of the House hearing yesterday, and thought: this is a circus. Everyone knows Trump is guilty or not before they’ve seen anything, just depending on what party they belong to. And no, no fan of Adam Schiff.

These Once-Secret Memos Cast Doubt On Joe Biden’s Ukraine Story (Solomon)

Former Vice President Joe Biden, now a 2020 Democratic presidential contender, has locked into a specific story about the controversy in Ukraine. He insists that, in spring 2016, he strong-armed Ukraine to fire its chief prosecutor solely because Biden believed that official was corrupt and inept, not because the Ukrainian was investigating a natural gas company, Burisma Holdings, that hired Biden’s son, Hunter, into a lucrative job. There’s just one problem. Hundreds of pages of never-released memos and documents — many from inside the American team helping Burisma to stave off its legal troubles — conflict with Biden’s narrative.

And they raise the troubling prospect that U.S. officials may have painted a false picture in Ukraine that helped ease Burisma’s legal troubles and stop prosecutors’ plans to interview Hunter Biden during the 2016 U.S. presidential election. [..] Some media outlets have reported that, at the time Joe Biden forced the firing in March 2016, there were no open investigations. Those reports are wrong. [..] the Ukraine Prosecutor General’s office still had two open inquiries in March 2016, according to the official case file provided me. [..] In a newly sworn affidavit prepared for a European court, Shokin testified that when he was fired in March 2016, he was told the reason was that Biden was unhappy about the Burisma investigation.

“The truth is that I was forced out because I was leading a wide-ranging corruption probe into Burisma Holdings, a natural gas firm active in Ukraine and Joe Biden’s son, Hunter Biden, was a member of the Board of Directors,” Shokin testified. “On several occasions President Poroshenko asked me to have a look at the case against Burisma and consider the possibility of winding down the investigative actions in respect of this company but I refused to close this investigation,” Shokin added.

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“..keeping him under investigation, at least through the November election, will increasingly erode the support of both Trump and the Republican party brand..”

Democrats Reveal the Real Purpose of the Impeachment Investigation (PCR)

The Democrats know that there is no impeachable offense. What they intend to do is to use the investigation to look into every aspect of Trump’s life and try to make dirt out of things unrelated to his talk with the Ukrainian president. This “impeachment investigation” is a political act to help their candidate win the next presidential election. Democrats themselves describe it in this way. For example, here is how Rob Kall, the director of one of the progressive Democrat websites, described the purpose of the investigation: “The idea should be to keep the impeachment going as long as possible, with new testimonies and new releases of disclosures of alleged corruption and treason on a regular basis.

“Looking at impeachment as a process for removing the president is the wrong way of thinking about it. Looking at it as a key that gives access to investigative tools is the smarter, more strategic, way of looking at it. “Ideally, it will get so bad for Trump that the Republicans will end up putting up someone else to run in the general election. “But keeping him under investigation, at least through the November election, will increasingly erode the support of both Trump and the Republican party brand, making a Democratic takeover of the Senate and the White House, and an increased control of the House even more likely.” In other words, it is a political power play.

The outcome depends on whether Americans see the impeachment investigation as another orchestrated hoax like Russiagate or whether they fall for the hoax as they iniatially did with the Russiagate investigation. The United States does not have a media. It has a propaganda ministry that helps the ruling elites control the explanations that Americans are given. Polls show that Americans have lost confidence in the media. If so, the impeachment investigation will backfire on the Democrats.

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Personally, I’m very much torn between tragedy and comedy.

Chelsea, Reality Hope New Approval Of Whistleblowers Will Set Them Free (Onion)

Following a CIA officer’s much-applauded decision to disclose evidence that President Trump urged his Ukrainian counterpart to interfere in the 2020 election, former intelligence analysts Chelsea Manning and Reality Winner expressed confidence Thursday that the nation’s newfound appreciation for whistleblowers would get them out of jail. “Now that everyone really seems to like it when wrongdoing is exposed, I’m sure it’s just a matter of time before they clear my name and let me go,” Winner said by phone from a federal prison in Texas, echoing the sentiments of Manning, who told reporters she expected not only to be released from jail but also to be allowed to return immediately to active duty in the Army.


“Americans recognize that what this anonymous whistleblower did was both courageous and patriotic, so I’m sure to be commended for releasing a report on interference in the 2016 election, right? I was ahead of my time, really. I’m not saying there will be a parade in my honor, but I sure wouldn’t be surprised. I’ll be out of here in a day or two, and then, who knows? Maybe I’ll even run for public office.” At press time, sources confirmed a chipper Edward Snowden had informed officials in the Justice Department that he was finally ready to leave Moscow and fly back home.

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The differences in fund-raising amounts are scary. The DNC is going to need Tulsi just for that.

Wall Street To Dems: We’ll Sit Out, Or Back Trump, If Warren Nominated (CNBC)

Democratic donors on Wall Street and in big business are preparing to sit out the presidential campaign fundraising cycle — or even back President Donald Trump — if Sen. Elizabeth Warren wins the party’s nomination. In recent weeks, CNBC spoke to several high-dollar Democratic donors and fundraisers in the business community and found that this opinion was becoming widely shared as Warren, an outspoken critic of big banks and corporations, gains momentum against Joe Biden in the 2020 race. “You’re in a box because you’re a Democrat and you’re thinking, ‘I want to help the party, but she’s going to hurt me, so I’m going to help President Trump,’” said a senior private equity executive, who spoke on condition of anonymity in fear of retribution by party leaders.

The executive said this Wednesday, a day after Speaker Nancy Pelosi announced that the House would begin a formal impeachment inquiry into Trump. During the campaign, Warren has put out multiple plans intended to curb the influence of Wall Street, including a wealth tax. In July, she released a proposal that would make private equity firms responsible for debts and pension obligations of companies they buy. Trump, meanwhile, has given wealthy business leaders a helping hand with a major corporate tax cut and by eliminating regulations. Warren has sworn off taking part in big money fundraisers for the 2020 presidential primary. She has also promised to not take donations from special interest groups.

She finished raising at least $19 million in the second quarter mainly through small-dollar donors. The third quarter ends Monday. Trump, has been raising hundreds of millions of dollars, putting any eventual 2020 rival in a bind as about 20 Democrats vie for their party’s nomination. Trump’s campaign and the Republican National Committee have raised over $100 million in the second quarter. A large portion of that haul came from wealthy donors who gave to their joint fundraising committee, Trump Victory. In August, the RNC raised just over $23 million and has $53 million on hand. The Democratic National Committee have struggled to keep up. The DNC finished August bringing in $7.9 million and has $7.2 million in debt.

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No Greyerz yesterday, MS today. People do understand. But nobody acts.

Fed Will Need To Grow Its Balance Sheet ‘Permanently’ – Morgan Stanley (CNBC)

The Federal Reserve’s asset purchases likely will total $315 billion over the next six months as it seeks to stabilize overnight funding markets and contain the movements of its target interest rate, according to projections from Morgan Stanley. Those permanent moves will be necessary because the current temporary purchases likely won’t be enough to stabilize the market for overnight purchase agreements, or repos, the bank said. The Fed just a month ago halted a process that saw a more than $600 billion reduction of the balance sheet, which consists mostly of Treasurys and mortgage-backed securities that it had acquired in its efforts to pull the U.S. economy out of the financial crisis.


“We maintain that these temporary repo operations will not prove to be a sufficient long-term solution to the recent funding pressure,” Morgan Stanley strategist Kelcie Gerson said in a note. “Ultimately, the Fed will need to increase the size of its balance sheet permanently.” The Morgan Stanley forecast is a bit smaller than one recently from Bank of America Merrill Lynch, which estimated balance sheet expansion at $400 billion this year. The balance sheet currently stands about $3.9 trillion, pushed by three rounds of asset purchases in a process known as quantitative easing. Starting in October 2017, the Fed started allowing some proceeds from its maturing bonds to roll off each month, with a corresponding decrease of bank reserves that has taken the total down to about $1.5 trillion, the lowest in more than eight years.

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Another issue that nobody acts upon.

US Annual Health Insurance Costs Hit Record High Above $20,000 (BBG)

The cost of family health coverage in the U.S. now tops $20,000, an annual survey of employers found, a record high that has pushed an increasing number of American workers into plans that cover less or cost more, or force them out of the insurance market entirely. “It’s as much as buying a basic economy car,” said Drew Altman, chief executive officer of the Kaiser Family Foundation, “but buying it every year.” The nonprofit health research group conducts the yearly survey of coverage that people get through work, the main source of insurance in the U.S. for people under age 65. While employers pay most of the costs of coverage, according to the survey, workers’ average contribution is now $6,000 for a family plan.


That’s just their share of upfront premiums, and doesn’t include co-payments, deductibles and other forms of cost-sharing once they need care. The seemingly inexorable rise of costs has led to deep frustration with U.S. health care, prompting questions about whether a system where coverage is tied to a job can survive. As premiums and deductibles have increased in the last two decades, the percentage of workers covered has slipped as employers dropped coverage and some workers chose not to enroll. Fewer Americans under 65 had employer coverage in 2017 than in 1999, according to a separate Kaiser Family Foundation analysis of federal data. That’s despite the fact that the U.S. economy employed 17 million more people in 2017 than in 1999.

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Yeah, it’s the Guardian, and yeah, it may be a little less bad than they say, but the Tories’ lack of preparedness for what they themselves promote is nuts regardless.

Quarter Of UK Rural Businesses ‘Could Be Bankrupted By No-Deal Brexit’ (G.)

As many as one in four rural businesses could be left facing bankruptcy in a no-deal Brexit, and the staunchly Conservative rural vote may be in doubt as a result, the head of the UK’s landowners’ group has warned on the eve of the Tory party conference. Farmers are particularly vulnerable to a no-deal Brexit because tariffs would be levied on exports, imports of cheap food could flood the market, and because decisions must be made now which will have an impact for the next year. Arable farmers are putting crops in the ground now for spring, and livestock farmers are preparing to breed sheep and other livestock for next year.


Tim Breitmeyer, president of the Country Land and Business Association, said farms and the rural businesses that rely on them were not in a position to absorb the shock of Brexit, and estimates suggested a large number would be in danger. “Agriculture is not making very much money. In many cases, they’re losing [money] without the single farm payment [subsidy]. If you have a tariff to add to your problems, if you have increased costs to add to your problems, it’s only going to make matters worse and tip some businesses over the top,” he told the Guardian. “Now I don’t know whether that’s 15% or 25% but I’m absolutely sure there will be quite a few farming businesses for which it actually just tips them into receivership.”

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China was never going to let Iran fall. But now Trump’s sanctions policies drive it straight into Beijing hands: “Chinese firms will maintain the right of the first refusal to participate in any and all petrochemical projects in Iran, including the provision of technology, systems, process ingredients and personnel required to complete such projects.”

China’s Giant $400 Billion Iran Investment Complicates US Options (F.)

Amidst historic U.S. – Iran tensions, Beijing is doubling-down on its strategic partnership with Tehran, ignoring U.S. efforts to isolate the Islamic Republic from global markets. Following an August visit by Iran Foreign Minister Mohammad Javad Zarif to Beijing, the two countries agreed to update a 25-year program signed in 2016, to include an unprecedented $400 billion of investment in the Iranian economy – sanctions be damned. The capital injection, which would focus on Iran’s oil and gas sector, would also be distributed across the country’s transportation and manufacturing infrastructure. In return, Chinese firms will maintain the right of the first refusal to participate in any and all petrochemical projects in Iran, including the provision of technology, systems, process ingredients and personnel required to complete such projects.


According to an exclusive interview with Petroleum Economist, a senior source in Iran’s petrochemical sector had this to say about the new agreement: “The central pillar of the new deal is that China will invest $280 billion developing Iran’s oil, gas and petrochemicals sectors… there will be another $120 billion investment in upgrading Iran’s transport and manufacturing infrastructure, which again can be front-loaded into the first five-year period and added to in each subsequent period should both parties agree.” This comes at a time when Washington is exerting its so-called ‘maximum pressure’ strategy against Iran, which aims to change its international behavior by bringing oil exports down to zero.

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Makes me think of how Britain fought back vs Germany, and Viernam vs the US. Once your entire economy moves into self-defense mode, -almost- anything is possible.

Yemen’s Houthis Are Bringing Down A Goliath (Escobar)

“It is clear to us that Iran bears responsibility for this attack. There is no other plausible explanation. We support ongoing investigations to establish further details.” The statement above was not written by Franz Kafka. In fact, it was written by a Kafka derivative: Brussels-based European bureaucracy. The Merkel-Macron-Johnson trio, representing Germany, France and the UK, seems to know what no “ongoing investigation” has unearthed: that Tehran was definitively responsible for the twin aerial strikes on Saudi oil installations. “There is no other plausible explanation” translates as the occultation of Yemen. Yemen only features as the pounding ground of a vicious Saudi war, de facto supported by Washington and London and conducted with US and UK weapons, which has generated a horrendous humanitarian crisis.

So Iran is the culprit, no evidence provided, end of story, even if the “investigation continues.” Hassan Ali Al-Emad, Yemeni scholar and the son of a prominent tribal leader with ascendance over ten clans, begs to differ. “From a military perspective, nobody ever took our forces in Yemen seriously. Perhaps they started understanding it when our missiles hit Aramco.” [..] “Past Yemeni governments had missiles, but after 9/11 Yemen was banned from buying weapons from Russia. But we still had 400 missiles in warehouses in South Yemen. We used 200 Scuds – the rest is still there [laughs].”

Al-Emad breaks down Houthi weaponry into three categories: the old missile stock; cannibalized missiles using different spare parts (“transformation made in Yemen”); and those with new technology that use reverse engineering. He stressed: “We accept help from everybody,” which suggests that not only Tehran and Hezbollah are pitching in. Al-Emad’s key demand is actually humanitarian: “We request that Sana’a airport be reopened for help to the Yemeni people.” And he has a message for global public opinion that the EU-3 are obviously not aware of: “Saudi is collapsing and America is embracing it in its fall.”

On the energy front, Persian Gulf energy traders that I have relied upon as trustworthy sources for two decades confirm that, contrary to Saudi Oil Minister Abdulazziz bin Salman’s spin, the damage from the Houthi attack on Abqaiq could last not only “months” but even years. As a Dubai-based trader put it: “When an Iraqi pipeline was damaged in the mid-2000s the pumps were destroyed. It takes two years to replace a pump as the backlogs are long. The Saudis, to secure their pipelines, acquired spare pumps for this reason. But they did not dream that Abqaiq could be damaged. If you build a refinery it can take three to five years if not more.

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“The secret probe is the consequence of a criminal complaint filed by Assange himself, in which he accuses Morales and the company of the alleged offenses involving violations of his privacy and the secrecy of his client-attorney privileges, as well as misappropriation, bribery and money laundering.”

Spanish Security Company Spied On Julian Assange In London For US (El Pais)

Undercover Global S. L., the Spanish defense and private security company that was charged with protecting the Ecuadorian embassy in London during the long stay there of WikiLeaks founder Julian Assange, spied on the cyberactivist for the US intelligence service. That’s according to statements and documents to which EL PAÍS have had access. David Morales, the owner of the company, supposedly handed over audio and video to the CIA of the meetings Assange held with his lawyers and collaborators. Morales is being investigated for this activity by Spain’s High Court, the Audiencia Nacional.

The judicial investigation into the director of UC Global S. L. and the activities of his company were ordered by a judge named José de la Mata, and they began weeks after EL PAÍS published videos, audios and reports that show how the company spied on the meetings that the cyberactivist held in the embassy. The secret probe is the consequence of a criminal complaint filed by Assange himself, in which he accuses Morales and the company of the alleged offenses involving violations of his privacy and the secrecy of his client-attorney privileges, as well as misappropriation, bribery and money laundering.

Morales, a former member of the military who is on leave of absence, stated both verbally and in writing to a number of his employees that, despite having been hired by the government of then-Ecuadorian President Rafael Correa, he also worked “for the Americans,” to whom he allegedly sent documents, videos and audios of the meetings that the Australian activist held in the embassy. “We are playing in another league. This is the first division,” he told his closest colleagues after attending a security fair in the US city of Las Vegas in 2015 where he supposedly made his first American contacts. Despite the fact that the Spanish firm – which is headquartered in the southern city of Jerez de la Frontera – was hired by Senain, the Ecuadorian intelligence services, Morales called on his employees several times to keep his relationship with the US intelligence services a secret.

The owner of UC Global S. L. ordered a meeting between the head of the Ecuadorian secret service, Rommy Vallejo, and Assange to be spied on, at a time when they were planning the exit of Assange from the Ecuadorian embassy using a diplomatic passport in order to take him to another country. This initiative was eventually rejected by Assange on the basis that he considered it to be “a defeat,” that would fuel conspiracy theories, according to sources close to the company consulted by this newspaper. The meeting took place on December 21, 2017 in the meeting room of the diplomatic building and was recorded both on video and audio by cameras installed by Morales’ employees.

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This is absolutely nuts. You need 100,000 at the very least, or mayhem will ensue. And the US can easily absorb those numbers. There are a million people coming, minimum, each year.

Trump Administration Proposes Historically Low Refugee Limit (AP)

The Trump administration wants to cap the number of refugees admitted into the United States to the lowest number since the resettlement program was created in 1980. A State Department proposal released Thursday would put a cap on the number of refugees at 18,000 for the fiscal year that starts Oct. 1. Of those refugee admissions spots, 5,000 would be set aside for persecuted religious minorities — an attempt to bolster President Donald Trump’s heightened focus on global religious freedom — and 1,500 would be set aside for nationals of Guatemala, Honduras and El Salvador, who are seeking asylum in the United States in far greater numbers.


Last year, the administration placed the cap at a record low of 30,000. The historically low limits have drawn protests from human rights groups as well as government officials. “To cut the number of refugees the U.S. will accept to this low of a number reflects nothing more than this administration’s attempts to further hate, division and prejudice in a country that once valued dignity, equality and fairness,” said Ryan Mace, Grassroots Advocacy and Refugee Specialist at Amnesty International USA. The group dismissed arguments that the U.S. lacks the capacity to adequately vet and settle refugees, calling this “a purely political decision.”

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Whistleblowers: WikiLeaks has never revealed a source.

 

 

 

 

 

Sep 102019
 
 September 10, 2019  Posted by at 9:23 am Finance Tagged with: , , , , , , , , , , ,  5 Responses »


Marc Chagall The painter to the moon 1917

 

 

To everyone used to receiving Automatic Earth posts in their email, I’m sorry but since Saturday they’re suddenly bouncing again en masse. This makes me very tired by now, but I’ll look for a solution. I suspect there may be a connection between this and Google accusing me of violating their rules, without telling me what rules I’m supposed to have violated.

 

 

 

 

Real US Debt Levels Could Be A Shocking 2,000% of GDP (CNBC)
Boris Johnson Loses Second Attempt To Trigger Early General Election (Ind.)
Parliament Suspension Begins As Johnson’s Election Bid Fails (BBC)
MPs Order Boris Johnson To Hand Over Government Communications (Ind.)
Why Europe Remains Unfazed By The UK’s Ongoing Political Drama (MW)
Judge Lets Facebook Privacy Class Action Proceed, Calls Company’s Views ‘So Wrong’ (R.)
And The Word Was God (Kunstler)
How 50 Years Of The ‘Nobel Prize’ In Economics Redrew Our Map Of Society (PEP)
Over 700 Migrants Cross Into Greece Over the Weekend (GR)

 

 

At this stage, what’s the difference between 1,000% and 2,000%?

Real US Debt Levels Could Be A Shocking 2,000% of GDP (CNBC)

Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much into the level. AB Bernstein came up with the calculation — 1,832%, to be exact — by including not only traditional levels of public debt like bonds but also financial debt and all its complexities as well as future obligations for so-called entitlement programs like Social Security, Medicare and public pensions. Putting all that together paints a daunting picture but one that requires nuance to understand. Paramount is realizing that not all of the debt obligations are set in stone, and it’s important to know where the leeway is, particularly in the government programs that can be changed either by legislation or accounting.


“This conceptual difference is important to acknowledge because this lens is often used by those who wish to paint a dire picture about debt,” Philipp Carlsson-Szlezak, chief U.S. economist at AB Bernstein, said in the report. “While the picture is dire, such numbers don’t prove we are doomed or that a debt crisis is inevitable.” Crisis measures cut both ways — sometimes a seemingly smaller level of debt can cause outsized problems during times of economic stress, such as during the financial crisis. And larger levels of debt can be sustained so long as other conditions, like leverage levels, or debt to capital, are manageable.

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He lost all 6 of his first 6 votes. Unique.

Boris Johnson Loses Second Attempt To Trigger Early General Election (Ind.)

Boris Johnson has lost his second attempt to trigger an early general election in his sixth humiliating Commons defeat since becoming prime minister. Ahead of parliament being suspended by the government for five weeks, MPs opposed to a no-deal Brexit again deprived the prime minister of the required votes for an early poll in the last major showdown of the current session. Less than a week after his first bid to seek an election was scuppered, Mr Johnson again asked the Commons to vote on a motion to bypass a law setting out that the next vote should not take place until 2022.


From Dutch newspaper NRC

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5 whole weeks, But trust me, they won’t be silent weeks.

Parliament Suspension Begins As Johnson’s Election Bid Fails (BBC)

Parliament has officially been suspended for five weeks, with MPs not due back until 14 October. Amid unusual scenes in the House of Commons, some MPs protested against the suspension with signs saying “silenced” while shouting: “Shame on you.” It comes after PM Boris Johnson’s bid to call a snap election in October was defeated for a second time. Opposition MPs refused to back it, insisting a law blocking a no-deal Brexit must be implemented first. In all, 293 MPs voted for the prime minister’s motion for an early election, far short of the two thirds needed. Parliament was suspended – or prorogued – at just before 02:00 BST on Tuesday.


As Speaker John Bercow – who earlier announced his resignation – was due to lead MPs in a procession to the House of Lords to mark the suspension, a group of angry opposition backbenchers appeared to try to block his way. It is normal for new governments to suspend Parliament, but the length and timing of the prorogation in this case has sparked controversy.

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Wonder how they’re going to go about not complying.

MPs Order Boris Johnson To Hand Over Government Communications (Ind.)

Boris Johnson’s government has suffered another humiliating Commons defeat, as MPs ordered the release of internal communications between the prime minister’s top advisers over the decision to suspend parliament. The emergency motion – passed by 311 to 302 votes – means the government will also be forced to publish its no-deal planning documents under Operation Yellowhammer. Put forward by the ex-Tory MP Dominic Grieve, the motion orders ministers to surrender the documents by Wednesday and includes the private communications of Mr Johnson’s chief-of-staff, Dominic Cummings. It demands “all correspondence, whether formal or informal in both written and electronic form” relating to the prorogation sent by officials since the day before Mr Johnson’s arrival in office on 24 July.


And their emergency motion makes clear this should include messages sent via the WhatsApp, Facebook Messenger, Telegram and Signal apps, by text or iMessage and from “private email accounts both encrypted and unencrypted”. It lists nine individuals in Mr Johnson’s administration, including Mr Cummings, Hugh Bennett, Simon Burton, Dominic Cummings, Nikki da Costa, Tom Irven, Sir Roy Stone, Christopher James, Lee Cain and Beatrice Timpson. Mr Grieve, who is now sitting as an independent MP after losing the Tory whip, said public officials had given him information relating to prorogation that informed him “they believed the handling of this matter smacked of scandal”.

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Europe at least pretends it has bigger fish to fry. Ireland, Holland, Belgium, France will be hit, but many others truly don’t care much.

Why Europe Remains Unfazed By The UK’s Ongoing Political Drama (MW)

Reason No. 1: the economy, and an end to uncertainty. Trust Macron to come back swinging at the next EU council meeting mid-October, when a possible request for an extension might be discussed if U.K. Prime Minister Boris Johnson abides by the law voted by Parliament. In March, the French president argued that it would be a waste of time. Others were in favor of granting the U.K. a longer extension, of up to a year. The irony is that Macron defends the same line as the hardest Brexiteers — mainly that there is a cost to uncertainty that at some point may exceed the cost of a no-deal Brexit. [..]

Reason No. 2: Diplomacy, and an EU desire to move on. A new European Commission is taking over on Nov. 1 — the day after the Brexit deadline — and Europe has challenges of its own to focus on. The influence of euroskeptic governments and movements on the EU’s deliberations is the first challenge, just as the EU has embarked on the tough discussions over its multiyear budget. Europe also needs to come together on the many challenges it is facing: whether to boost joint defense capabilities or what policy to adopt toward Russia, for example, in addition to optimizing its positioning vis-à-vis U.S. President Donald Trump. [..]


Reason No. 3: Politics, and the fact that Brexit isn’t a European domestic problem. For EU leaders, there is little political capital to lose by playing hardball with London. Brexit has never been a European problem, and it never figured as a topic in the many national electoral campaigns that have taken place since the Brexit referendum in 2016. EU leaders don’t even really care about the possible blame game that would follow a hard Brexit, if they appear to have slammed the door on London.

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Facebook is the opposite of privacy, that’s its business model.

Judge Lets Facebook Privacy Class Action Proceed, Calls Company’s Views ‘So Wrong’ (R.)

A federal judge on Monday ordered Facebook to face most of a nationwide lawsuit seeking damages for letting third parties such as Cambridge Analytica access users’ private data, calling the social media company’s views on privacy “so wrong.” While dismissing some claims, U.S. District Judge Vince Chhabria in San Francisco said users could try to hold Facebook liable under various federal and state laws for letting app developers and business partners harvest their personal data without their consent on a “widespread” basis. He rejected Facebook’s arguments that users suffered no “tangible” harm and had no legitimate privacy interest in information they shared with friends on social media.


“Facebook’s motion to dismiss is littered with assumptions about the degree to which social media users can reasonably expect their personal information and communications to remain private,” Chhabria wrote. “Facebook’s view is so wrong.” A Facebook spokeswoman said the company considered protecting people’s information and privacy “extremely important,” but believed its practices were consistent with its disclosures and “do not support any legal claims.” Lesley Weaver and Derek Loeser, two of the plaintiffs’ lawyers, said in a joint statement that they were pleased with the decision, and “especially gratified that the court is respecting Facebook users’ right to privacy.”

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Jim standing up for teaching proper language skills.

And The Word Was God (Kunstler)

Enough about me. Obviously, the racial shuffle has been going on for decades in the New York City school system, but in these times of white privilege and intersectionality, the escape routes of G & T and SP must be plugged. No extra gruel for you! But I have a remedy for the persistent problem of underperformance, one that has not really been tried: intense concentration, starting in preschool and going forward as long as necessary, in spoken English. Language is the foundation of learning, certainly of reading skill, and too many children just can’t speak English. Without it, they’ll be unable to learn anything else, including math. The reasons for their poor language skills are beside the point.


Whether they are newcomers from foreign lands or the descendants of slaves, they need to learn how to speak English and to do it correctly, with all the tenses and correct verbs. They need to be intelligible to others and to themselves to make sense of the world. The resistance to this idea would be mighty and furious, I’m sure. Some people will always be smarter than others, but the disparities at issue are badly aggravated by poverty in language. We don’t even pretend to want to take the obvious steps to correct this, even though it is obviously correctable. Learning anything puts people out of their comfort zone, so that can’t be used as an excuse. Diversity in language is a handicap, and it does not make you specially abled. In the beginning was the Word, and the Word was with God, and the Word was God.

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I used to rant a lot against the Fauxbel, haven’t for a bit. But my friend Steve Keen is involved in this round.

How 50 Years Of The ‘Nobel Prize’ In Economics Redrew Our Map Of Society (PEP)

Who shaped our world more Neil Armstrong, Jimi Hendrix, or the King of Sweden? By any standards, 1969 was a momentous year. Neil Armstrong was the first person to walk on the moon, half a million people came to Woodstock to hear Jimi Hendrix, and the Stonewall riots kicked off the gay liberation movement. The same year, less well remembered, an event in Stockholm arguably shaped our world today even more. And not for the best. Fifty years ago this year, the King of Sweden presented with royal pomp the first ever Nobel medals in economics. The prize has been dogged by controversy ever since. Alfred Nobel the founder of the awards never wanted an economics prize, his descendants want it scrapped and the economist F.A. Hayek said it was dangerous.

That’s not the half. Serious thinkers argue that the prize in ‘economic sciences’, as it’s called, has given economic ideas which favour the rich and powerful the gloss of scientific truth. The prize, still paid for every year by Sweden’s Central Bank, has helped weaken democratic control of money, they argue, and helped one school of economic thought – known as neoclassical – dominate the rest. It has contributed to a crisis of conformity in economics and trouble well beyond the ivory tower. This narrow economic thinking celebrated by the Nobels has often ignored, and exacerbated, the multiple crises staring us in the face: ecological breakdown, financial crashes, and politically toxic inequality.


Take the 2018 winner William Nordhaus: his models may have delayed action on climate change. Or consider the 1997 winners Robert Merton and Myron Scholes: their hedge fund had to be bailed out to the tune of $3.6 billion less than a year after they won the prize. Or wrap your head around the equations of the 1996 winner, James Mirrlees, whose work contributed to plummeting tax on the super-rich around the world. All of these “contributions” are described as economic science: the political values and choices inherent in the models are rarely acknowledged or discussed. Debate is closed down.

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It may have started again. Erdogan is threatening to send over 5.5 million refugees and migrants if a safe area in northern Syria in not funded by the west.

Over 700 Migrants Cross Into Greece Over the Weekend (GR)

At east 207 migrants landed just on the island of Lesvos early on Monday, bringing the total number of illegal migrants landing on all Aegean islands over the weekend to 726. As migrant flows increase, Greek premier Mitsotakis said that Turkey should not try to coerce either Greece or Europe in its attempts to receive support for a plan to resettle Syrian refugees in northern Syria. Turkey is currently proposing to resettle one million refugees there, and it may reopen the route for illegal immigrants to flow into Europe if it does not receive adequate international support for the plan, President Tayyip Erdogan said on Thursday.


“Mr. Erdogan must understand that he cannot threaten Greece and Europe in an attempt to secure more resources to handle the refugee (issue),” Mitsotakis told a news conference in the northern Greek city of Thessaloniki. “Europe has given a lot of money, six billion euros in recent years, within the framework of an agreement between Europe and Turkey and which was mutually beneficial,” the Greek PM said.

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Nov 022018
 
 November 2, 2018  Posted by at 9:19 am Finance Tagged with: , , , , , , , , , , ,  17 Responses »


Pablo Picasso Bathers 1918

 

Trump Plans ‘Meeting Plus Dinner’ With Xi Jinping After G20 Summit (SCMP)
Shares Soar As Trump Hints At Possible US-China Trade Deal (G.)
The Fed’s QE Unwind Hits $321 Billion (WS)
Debt Is Back But This Time It’s Corporate (GolemXIV)
The ‘True State’ Of Americans’ Financial Lives (MW)
The American Dream Feels Further Off Than Ever For Millennials (G.)
The Lesson of 2018 (Strassel)
1 in 5 Germans Is ‘At Risk Of Poverty’ Despite Record Employment (RT)
Brexit Campaigner Arron Banks Faces Criminal Inquiry (G.)
EU Fisheries Row Threatens May’s Customs Union Plan (G.)
Groundskeeper In Monsanto US Weed-Killer Case Accepts Reduced Award (R.)
Thousands Of Europe-Bound Migrants Have Simply Vanished (ZH)

 

 

This would only happen if there’s progress in talks….

Trump Plans ‘Meeting Plus Dinner’ With Xi Jinping After G20 Summit (SCMP)

US President Donald Trump has offered to host a dinner for Chinese President Xi Jinping on December 1 in Buenos Aires after the G20 leaders summit, an invitation Beijing has tentatively accepted, people familiar with the arrangement have told the South China Morning Post. The Post reported two weeks ago that Trump and Xi had agreed to meet on November 29, the day before the official opening of the summit, but the meeting was rescheduled and upgraded into a “meeting plus dinner” at Trump’s request, the people said, who declined to be identified as the information is still classified.

A “Western-style” sit-down dinner after the G20 summit could offer the two leaders more time to talk than a chat on the sidelines of the summit and could offer a more conducive atmosphere for negotiations. “Trump originally planned to leave Buenos Aires as soon as the G20 agenda finished, but he has decided to postpone his departure to make this dinner happen,” a source said. It is not yet known what specific issues will be on the agenda. The two leaders had a call on Thursday, officially agreeing to meet in Argentina and laying the ground for further discussions on trade and North Korea.

Trump said in a tweet that he had a “long and good [phone] conversation” with Xi, adding: “We talked about many subjects, with a heavy emphasis on Trade. Those discussions are moving along nicely with meetings being scheduled at the G20 in Argentina. Also had good discussion on North Korea!” The Chinese side issued a much longer statement about the phone call. According to the official Xinhua news agency, Xi told Trump that “both of us have good intentions for the healthy and steady development of Sino-US relations and for growth in Sino-US trade cooperation, and we shall make efforts to turn these intentions into reality.”

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….but this may still be wishful thinking.

Shares Soar As Trump Hints At Possible US-China Trade Deal (G.)

Asian shares have surged on reports that Donald Trump wants to reach an agreement with Chinese president Xi Jinping about the trade dispute that has dogged markets for months. The US president spoke to Xi on Thursday and later tweeted that trade talks with China were “moving along nicely” ahead of face-to-face talks between the pair at the G20 summit in Argentina later this month. But Bloomberg later reported that the phone call – in which Trump and Xi both expressed optimism about resolving their bitter trade disputes – prompted Trump to ask officials to begin drafting potential terms. The report lit a fire under stock markets that have beset by fears of a full-blown trade war between the world’s two biggest economies.

The Nikkei was up 2.3% in Tokyo, the Hang Seng climbed 3.35% in Hong Kong and the Shanghai Composite was up 3%. There was a also a strong gain of 3% for the export-oriented Kospi index in South Korea. US stock futures rose 0.7% and the FTSE100 is set for a jump of almost 1% when it opens in London on Friday morning. The US and China’s tit-for-tat tariffs on each other’s goods have rumbled on for months as Trump pledges to help create more US manufacturing jobs. The tariffs have been blamed for a weakening of China’s mighty manufacturing sector which this week showed a marked slowdown in activity.

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Shedding $50 billion a month. Mayhem in dollar markets.

The Fed’s QE Unwind Hits $321 Billion (WS)

Over the four-week period from October 3 through October 31, the Federal Reserve shed $35 billion in assets, according to the Fed’s weekly balance sheet released Thursday afternoon. This brought the balance sheet to $4,140 billion, the lowest since February 12, 2014. Since October 2017, when the Fed began its QE unwind, or “balance sheet normalization,” it has now shed $321 billion. The Fed acquired Treasury securities and mortgage-backed securities (MBS) as part of QE, which ended in 2014. Between the end of QE and the beginning of the QE Unwind in October 2017, the Fed replaced maturing securities with new securities to keep their levels roughly the same.

In October last year, the Fed kicked off the QE unwind and began shedding those securities. But the balance sheet also reflects the Fed’s other activities, and the amount of its total assets is always higher than the sum of Treasury securities and MBS it holds. October was a new milestone: the QE unwind left the ramp-up phase and entered the cruising-speed phase, according to the Fed’s plan. In the cruising-speed phase, the Fed is scheduled to shed “up to” $30 billion in Treasuries and “up to” $20 billion in MBS a month, for a total of “up to” $50 billion a month. From October 3 through October 31, the Fed’s holdings of Treasury Securities fell by $23.8 billion to $2,270 billion, the lowest since February 19, 2014. Since the beginning of the QE-Unwind, the Fed has shed $195 billion in Treasuries:

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The amount of high risk debt owned by pension funds is something else. As I always say, remember the days of AAA?

Debt Is Back But This Time It’s Corporate (GolemXIV)

On Wednesday Feb 7th 2007 HSBC issued a profit warning. It was the first in its 142 year history. The bank told its share holders it would have to take an unprecedented charge of $10.5 billion because one of its units, its sub prime lender, was in deep trouble. And so began the sub prime crisis. Today GE issued a profit warning and cut its dividend to share holders from 12 cents to 1 cent. It is only the third time since the Great Depression that GE has reduced its dividend in this way. It told its share holders it would be taking a $22 Billion charge because one of its units, its power unit, is in deep trouble. GE has about $116 billion in debt. In 2007 the banks had flooded the global market with sub-prime loans.

The banks were also holding many of those same loans themselves or had transferred them to Special Purpose Vehicles (SPVs) they had set up, staffed and lent money to. Today it is not the banking world which stands at the centre of the storm but the corporate world. In the last years they have flooded the market with junk rated bonds. At the same time they are also burdened with high yielding, leveraged and covenant- lite loans. Taken together they are about $2.4 Trillion of debt. 2007 sub prime loans. 2018 corporate junk bonds and leveraged loans. 2007 banks and SPVs funded by the banks. 2018? Where is this sub-prime corporate debt sitting today? Nearly half sits in Insurance Companies and Pension funds. Given the close ties between insurance and pensions this is not a happy picture.

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“Some 44% of people said their expenses exceeded their income in the past year and they used credit to make ends meet.”

The ‘True State’ Of Americans’ Financial Lives (MW)

The finances of Americans may not be as good as they look from the outside. Despite optimistic metrics like a nine-year-long bullish, if volatile, stock market, low unemployment levels, and consumer confidence levels nearing record highs, millions of Americans continue to struggle, a study released Thursday from financial consultancy nonprofit the Center for Financial Services Innovation (CFSI) found. Only 28% of Americans are considered “financially healthy,” according to a CFSI survey of more than 5,000 Americans. “Financial health enables family stability, education, and upward mobility, not just for individuals today but across future generations,” the CFSI says.

“Many are dealing with an unhealthy amount of debt, irregular income, and sporadic savings habits.” Some 44% of people said their expenses exceeded their income in the past year and they used credit to make ends meet. Another 42% said they have no retirement savings at all. Meanwhile, 17% of Americans are “financially vulnerable,” meaning they struggle with nearly all financial aspects of their lives, and 55% are “financially coping,” meaning they struggle with some but not all aspects of their financial lives. The recent volatility in the Dow Jones Industrial and S&P 500 has not helped Americans feel secure, experts say.

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Can’t afford to start a family.

The American Dream Feels Further Off Than Ever For Millennials (G.)

From adolescence to our mid-30s, my wife and I have followed every common precept of responsible young adulthood – what conservatives venerate as “the success sequence”. We finished high school (then college, then grad school). We charged into the labor market and have stayed there. We had kids in a stable marriage. Neither of us quit our jobs or took a year off to “find ourselves”. We cut coupons and buy food in bulk. We did this, in part, because we trusted what we believed was America’s basic bargain: work hard, play by the proverbial rules, and you’ll enjoy a healthy middle-class life. You’ll have a decent job, stable housing, affordable education and healthcare, and a clear route to retirement.

But that old, potholed path doesn’t deliver like it used to, even for responsible rule-followers like us. Here in our mid-30s, my wife and I are still chasing homeownership, that final, elusive piece of middle-class life. Today’s young families started to hit the labor market during the great recession. We’re buried in educational debt, and college costs for our kids are predicted to be even higher than ours. Housing near good-paying jobs is wildly expensive. Healthcare costs are uncertain. We’re less likely to have a guaranteed retirement pension through work, and current signals suggest that government-funded retirement supports will be significantly smaller, if they’re there at all. These are bread-and-butter issues.

While national political leaders are gridlocked on how to address the crises of widening inequality and limited upward mobility, we’re struggling to simply provide our children with the same opportunities that came relatively easily to earlier generations. Most young families aren’t cynical because the rich have private helicopter fleets and offshore bank accounts, per se. We’re frustrated because the American bargain we believed in is broken.

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I don’t often disagree with Kimberley Strassel, but I do disagree with “the ascendant progressive movement blew an easy victory for Democrats.” It’s the old guard that blew it, Clinton, Pelosi, Waters, Feinstein.

The Lesson of 2018 (Strassel)

In a few days the U.S. will have its midterm results, and the Beltway press corps will lecture us on the lessons. Don’t expect to hear much about the one takeaway that is already obvious: that today’s preferred progressive politics—of character assassination, mob rule, intimidation and wacky policies—is an electoral bust. It is not what is winning Democrats anything. It is what is losing the party the bigger prize. Six weeks ago, Democrats were expecting a blue wave to rival the Republican victory of 2010, when the GOP picked up 63 House seats. Everything was in their favor. History—the party in power almost always loses seats. Money—Democrats continue to outraise Republicans by staggering amounts.

The opposition—some 41 GOP House members retired, most from vulnerable districts where Donald Trump’s favorability is low. Democrats were even positioned to take over the Senate, despite defending 10 Trump-state seats. Democrats obliterated their own breaker in the space of two weeks with the ambush of Supreme Court nominee Brett Kavanaugh. The left, its protesters and its media allies demonstrated some of the vilest political tactics ever seen in Washington, with no regard for who or what they damaged or destroyed along the way—Christine Blasey Ford, committee rules, civility, Justice Kavanaugh himself, the Constitution. An uncharacteristically disgusted Sen. Lindsey Graham railed: “Boy, y’all want power. God, I hope you never get it!”

A lot of voters suddenly agreed with that sentiment. The enormous enthusiasm gap closed almost overnight as conservative voters rallied to #JobsNotMobs. Even liberal prognosticators today forecast that Republicans will keep the Senate and Democrats will manage only a narrow majority in the House, if that. It’s always possible the polls are off, or that there is a last-minute bombshell. But it remains the case that the ascendant progressive movement blew an easy victory for Democrats.

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Thanks, Mutti. Or in other words: now you know why Merkel lost so much support.

1 in 5 Germans Is ‘At Risk Of Poverty’ Despite Record Employment (RT)

Germany may be Europe’s biggest and strongest economy and is enjoying record employment, but one fifth of its citizens are struggling to make ends meet, a new study reveals. Some 15.5 million people or 19 percent of the population in Germany were “at risk of poverty” or “social exclusion” in 2017, the Federal Statistics Office said. Even though the unemployment rate in Germany has fallen to record lows, many people still do not earn enough to pay their bills and keep themselves above the poverty line. Some 13.1 million Germans, roughly 16.1 percent of the population, are threatened by poverty precisely because of their low monthly income, the federal statistics bureau says.

According to the criteria introduced in the EU, people are considered to be at risk of poverty if their total income amounts to less than 60 percent of an average income in their country. In the case of Germany, it amounts to €1,096 ($1,243) for a single person per month and €2,302 ($2,611) for a family of two adults and two children under 14. 3.4 percent of the population were considered as threatened by poverty as they struggled to pay their rent on time, heat their homes adequately, travel on vacation or even to regularly get a substantial meal due to a lack of financial resources.

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This has been known for a long time, why investigate only now? And the Guardian blows its coverage of the topic by bringing Russia into the discussion. But then that’s Britain’s new favorite pastime. Another piece today on this, also in the Guardian, is by Luke Harding, career Assange and Putin basher.

Brexit Campaigner Arron Banks Faces Criminal Inquiry (G.)

The National Crime Agency is to investigate allegations of multiple criminal offences by Arron Banks and his unofficial leave campaign in the Brexit referendum, prompting calls from some MPs for the process of departing the European Union to be suspended. The NCA would look into suspicions that a “number of criminal offences may have been committed”, the Electoral Commission said in a statement, saying there were reasonable grounds to suspect Banks was “not the true source” of £8m in funding to the Leave.EU campaign. The commission said the cases involve Banks, the insurance millionaire who heavily backed leave; Elizabeth Bilney, one of his key associates; Leave.EU itself; the company used to finance it; and “other associated companies and individuals”.

News of the investigation prompted anti-Brexit campaigners to call for a delay to the process of leaving the EU. The Labour MP David Lammy said Brexit “must be put on hold until we know the extent of these crimes against our democracy”. A series of other Labour MPs echoed the call, while the Lib Dems said Brexit could not go ahead based on “a leave campaign littered with lies, deceit and allegations of much worse”. Downing Street said it could not comment on a live investigation, but dismissed the idea of a pause: “The referendum was the largest democratic exercise in this country’s history and the PM is getting on with delivering its result.” Banks and Bilney, who chaired the Leave.EU campaign, said they rejected any allegations of wrongdoing, and argued the investigation was motivated by political considerations.

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Spending time talking fisheries is entirely useless as long as the Irish border issue is still out there.

EU Fisheries Row Threatens May’s Customs Union Plan (G.)

Theresa May is facing fresh opposition from EU countries that have large fishing communities to her demands for an agreement before Brexit day on a temporary customs union to solve the Irish border problem. [..] The prime minister has said she wants the “backstop” solution in the withdrawal agreement, under which Northern Ireland would in effect stay in the single market and customs union alone, to be scrapped in favour of the whole of the UK staying in a customs arrangement temporarily. In the latest development, the European commission has floated a plan in which the full terms of a “bare bones” customs union for Great Britain would be laid out in the withdrawal agreement, so there would be no need for negotiations on it after Brexit. Northern Ireland would stay under the full EU customs code.

The backstop would come into force at the end of the transition period should a comprehensive trade deal to ensure there is no need for a hard border on the island of Ireland not be agreed in time. A senior EU official conceded that the proposal would not remove the need for a Northern Ireland-specific backstop that would keep the province in the single market as the UK gave up its membership. The issue of what to do about fisheries would also remain with member states likely to reject to any deal that undermines the “trade-off” envisioned in the bloc’s negotiating position papers in which British exporters were only given access to the single market in exchange for European fishing boats keeping access to the seas around the UK.

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Monsanto saved itself $200 million. But they’ll apeal again.

Groundskeeper In Monsanto US Weed-Killer Case Accepts Reduced Award (R.)

The school groundskeeper who won a jury trial against Bayer’s Monsanto unit over allegations that the company’s glyphosate-containing weed-killers caused his cancer, accepted a court-mandated reduced punitive damages award on Wednesday. The decision by Dewayne Johnson, who sued Monsanto in 2016, brings the total award to $78 million, down from the jury’s verdict on Aug. 10 of $289 million – $39 million in compensatory and $250 million in punitive damages. Johnson’s law firm said in a statement that he accepted the reduction “to hopefully achieve a final resolution within his lifetime.”

Judge Suzanne Bolanos of San Francisco’s Superior Court of California, who oversaw the trial, earlier this month affirmed the liability portion of the verdict, but ordered punitive damages to be slashed to concur with California and federal law. Bayer denies allegations that glyphosate can cause cancer and said it will appeal the decision as the verdict was not supported by the evidence presented at trial. The verdict, which marked the first such decision against Monsanto, wiped 10 percent off the value of the company and shares have since dropped nearly 30 percent from their pre-verdict value.

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Thanks Mutti. And Europeans will just focus on the US-Mexico border of course. Is that double morals or no morals at all?

Thousands Of Europe-Bound Migrants Have Simply Vanished (ZH)

Tens of thousands of migrants undertaking dangerous journeys in search of greener pastures throughout the world are dead or missing, according to an AP tally – nearly doubling estimates from the N’s International Organization for Migration (IOM). At least 56,800 migrants worldwide have simply vanished since 2014 by AP’s count – eclipsing the IOM’s October 1 estimate of around 28,500. This year alone, the IOM has documented over 1,900 deaths in and around the Mediterranean. “A growing number of migrants have drowned, died in deserts or fallen prey to traffickers, leaving their families to wonder what on earth happened to them,” reports Fox News. “At the same time, anonymous bodies are filling cemeteries around the world.”

Focusing on Europe alone, AP found almost 4,900 migrants whose families can’t account for their lived ones – nearly half of which are children who have been reported missing to the Red Cross. “… many of those who go missing are uncounted, including boatfuls [sic] of young Tunisians or Algerians and children whose parents lost track of them in the chaos of land border crossings. In all, The Associated Press found nearly 4,900 people whose families say they simply disappeared without a trace in Europe or en route, including more than 2,700 children whose families reported them missing to the Red Cross.” -Fox News

Meanwhile, efforts to identify those who have died in shipwrecks trying to make it to Europe have fallen flat. Of the 400 or so remains interred in a Tunisian cemetery for unidentified migrants, for example, only one has ever been identified since its opening in 2005. “Their families may think that the person is still alive, or that he’ll return one day to visit,” said one unemployed sailor, Chamseddin Marzouk. “They don’t know that those they await are buried here, in Zarzis, Tunisia.”

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Aug 292018
 


Pablo Picasso In “Le Lapin Agile” or harlequin with a glass 1905

 

Almost Half Of Americans Can’t Pay For Their Basic Needs (CBS)
White House Probes Google After Trump Accuses It Of Bias (R.)
Trump Unblocks More Twitter Users After US Court Ruling (R.)
Facebook Censorship, Mad Ben Nimmo and the Atlantic Council (Craig Murray)
The Greatest Fake Bull Ever (Stockman)
China’s Building-Boom Hits A Wall As Shadow-Banking System Collapses (ZH)
A Senator Masquerading as a Gas Station (Dmitry Orlov)
Brazil Sends Army To Border As Venezuelans Flee Crisis At Home (R.)
Syria Ready To Take One Million Returning Refugees – Moscow (AFP)
Just 10 Rivers Carry 95% Of All Plastic Into The Ocean (BT)
Bees Develop Preference For Pesticides (PA)

 

 

Now imagine a shrinking economy thrown in.

Almost Half Of Americans Can’t Pay For Their Basic Needs (CBS)

Four in 10 Americans are struggling to pay for their basic needs such as groceries or housing, a problem even middle-class households confront, according to a new study from the Urban Institute. Despite the U.S. economy being near full employment, 39.4 percent of adults between 18 and 64 years old said they experienced at least one type of material hardship in 2017, according to the study, which surveyed more than 7,500 adults about whether they had trouble paying for housing, utilities, food or health care. The findings surprised researchers at the Urban Institute, who had expected to find high levels of hardship among poor Americans but hadn’t predicted so many middle-class families would also struggle to meet their basic needs.

That may illustrate that a middle-class income “is no guarantee” of protection from hardship, said Michael Karpman, research associate at the Urban Institute’s health Policy Center and a co-author of the report. Against the backdrop of President Donald Trump’s boasting about low unemployment and strong economic growth, the research adds nuance to the problems facing American families. Middle-class households tend to struggle with paying their health care bills rather than utilities, for instance. Health care costs have outpaced wages and inflation, pushing more Americans into high-deductible plans, which can backfire when serious health problems arise.

“A lot of people are looking at the fact that wages aren’t keeping up with household costs as one reason families are having difficulty making ends meet,” Karpman said. “Even for families with health insurance, they may be facing high deductibles that leave them facing high costs.”

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The bias is obvious. How to fight it is not.

White House Probes Google After Trump Accuses It Of Bias (R.)

U.S. President Donald Trump on Tuesday accused Google’s search engine of promoting negative news articles and hiding “fair media” coverage of him, vowing to address the situation without providing evidence or giving details of action he might take. Trump’s attack against the Alphabet Inc unit follows a string of grievances against technology companies, including social media Twitter Inc and Facebook Inc, which he has accused of silencing conservative voices, and Amazon.com Inc, which he has said is hurting small businesses and benefiting from a favorable deal with the U.S. Postal Services. He frequently berates news outlets for what he perceives as unfair coverage.

Google denied any political bias, saying in a statement that its search engine is “not used to set a political agenda and we don’t bias our results toward any political ideology.” Trump said in several tweets on Tuesday that Google search results for “Trump News” were “rigged” against him because they showed only coverage from outlets like CNN and not conservative publications, suggesting the practice was illegal. “I think Google is really taking advantage of our people,” Trump said on Tuesday in the Oval Office. “Google, and Twitter and Facebook, they are really treading on very, very troubled territory, and they have to be careful. It’s not fair to large portions of the population.”

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A pattern emerges. Trump violates 1st amendment when blocking users, but Twitter “retains authority to revoke access”. That cannot stand.

Trump Unblocks More Twitter Users After US Court Ruling (R.)

U.S. President Donald Trump on Tuesday unblocked some additional Twitter users after a federal judge in May said preventing people from following him violated individuals constitutional rights. U.S. District Judge Naomi Reice Buchwald in Manhattan ruled on May 23 that comments on the president’s account, and those of other government officials, were public forums and that blocking Twitter Inc users for their views violated their right to free speech under the First Amendment of the U.S. Constitution. The Knight First Amendment Institute at Columbia University on August 10 sent the Justice Department a list of 41 accounts that had remained blocked from Trump’s @RealDonaldTrump account. The seven users who filed suit had their accounts unblocked in June.

The 41 blocked users include a film producer, screenwriter, photographer and author who had criticized President Trump or his policies. At least 20 of those individuals said on Twitter that Trump had unblocked them on Tuesday. The 41 users were not a comprehensive list of those blocked by Trump. Rosie O’Donnell, a comedian, said on Twitter late Tuesday that she remained blocked. [..] The ruling has raised novel legal issues. The Internet Association, a trade group that represents Twitter, Facebook Inc, Amazon.com, and Alphabet Inc, filed a brief in the case earlier this month that did not back Trump or the blocked users but urged the court to “limit its decision to the unique facts of this case so that its decision does not reach further than necessary or unintentionally disrupt the modern, innovative Internet.”

[..] The Internet Association said the court “should make clear that this case does not implicate the overwhelming majority of social media accounts throughout the Internet.” “Despite any First Amendment status that this court might find in the ‘interactive spaces’ associated with President Trump’s account, Twitter retains authority to revoke access to both his account and the account of any user seeking to comment on President Trump’s account,” the group said.

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Facebook deletes posts from a former UK ambassador.

Facebook Censorship, Mad Ben Nimmo and the Atlantic Council (Craig Murray)

Facebook has deleted all of my posts from July 2017 to last week because I am, apparently, a Russian Bot. For a while I could not add any new posts either, but we recently found a way around that, at least for now. To those of you tempted to say “So what?”, I would point out that over two thirds of visitors to my website arrive via my posting of the articles to Facebook and Twitter. Social media outlets like this blog, which offer an alternative to MSM propaganda, are hugely at the mercy of these corporate gatekeepers.

Facebook’s plunge into censorship is completely open and admitted, as is the fact it is operated for Facebook by the Atlantic Council – the extreme neo-con group part funded by NATO and whose board includes serial war criminal Henry Kissinger, Former CIA Heads Michael Hayden and Michael Morrell, and George Bush’s chief of Homeland Security Michael Chertoff, among a whole list of horrors.

The staff are worse than the Board. Their lead expert on Russian bot detection is an obsessed nutter named Ben Nimmo, whose fragile grip on reality has been completely broken by his elevation to be the internet’s Witchfinder-General. Nimmo, grandly titled “Senior Fellow for Information Defense at the Atlantic Council’s Digital Forensic Research Lab”, is the go-to man for Establishment rubbishing of citizen journalists, and as with Joseph McCarthy or Matthew Clarke, one day society will sufficiently recover its balance for it to be generally acknowledged that this kind of witch-hunt nonsense was not just an aberration, but a manifestation of the evil it claimed to fight.

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“..the generational fiscal catastrophe that looms in the 2020s as 80 million baby-boomers pile onto the social security/medicare wagon.”

The Greatest Fake Bull Ever (Stockman)

the Wall Street stock indices have vastly out-run the meager gains in the main street economy since the pre-crisis peak; and that at this late stage of the business cycle—merely 10 months from the prior record—there is absolutely no plausible risk/reward equation left. That’s because earnings will plummet in the next recession—by 40% or more if history is any guide. And that’s likely to be conservative in view of the elephant in the casino that Wall Street stubbornly refuses to acknowledge. To wit, back in June 2007, the S&P 500 earnings peaked at $85 per share, but that reflected fully $55 per share of after-tax interest expense. Fast forward to the LTM period ending in December 2017 when earnings per share posted at $110 per share, but reflected only $19 per share of after-tax interest expense.

In other words, more than 100% of the gain over the past 11 years was due to the drastic financial repression of the central banks and its impact on corporate interest expense. Yet the central banks of the world—led belatedly by the Fed—have made an epochal pivot to QT (quantitative tightening) and interest rate normalization, even as the value of the interest expense deduction has been reduced to chump change owing to the new effective tax rate of about 15%. So interest expense is marching back up the hill, and it’s not remotely priced-in—not any more than the next recession or the generational fiscal catastrophe that looms in the 2020s as 80 million baby-boomers pile onto the social security/medicare wagon.

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Xi has let the shadows grow to fake the growth, and will have a hard time tackling them now.

China’s Building-Boom Hits A Wall As Shadow-Banking System Collapses (ZH)

Beijing wants to shore up growth without inundating the economy with cheap credit. But, as WSJ’s Walter Russell Mead pointed out previously, it’s not easy… “Chinese leaders know that their country suffers from massive over-investment in construction and manufacturing, that its real-estate market is a bubble that makes the Dutch tulip frenzy look restrained, that both conventional debt and debt in the shadow-banking system are too large and growing too rapidly. But even as the Communist Party centralizes power and clamps down on dissent, it dithers when it comes to the costly and difficult work of shifting China’s economic development onto a sustainable track. Chinese authorities have tried to tackle some of these problems, but often retreat when reforms start to bite and powerful interests push back.”

To see how hard that will be, The Wall Street Journal’s Nathaniel Taplin takes a look at China’s roads and railways. “China is the 800-pound gorilla of global infrastructure. Its building prowess has permeated popular culture, as in the disaster movie “2012” where China constructs giant ships to help humankind escape rising seas. Recently, however, China’s infrastructure build has all but ground to a halt.” Here’s why… The central government last year started to crack down on unregulated, opaque – so-called ‘shadow-bank’ borrowing – alarmed at its vast scale, and potential for corruption.

For five straight months, the shadow banking system has contracted under this pressure, sucking the malinvestment lifeblood out of economic growth and construction booms as Chinese local governments, which account for the bulk of such investment, set up as so-called local-government financing vehicles (off balance sheet), or LGFVs, and have seen an unprecedented net $19 billion outflow in recent months. As WSJ’s Talpin notes, these days Beijing prefers that local governments borrow on-the-books, through the now legal municipal bond market. The problem is that lower-rated and smaller cities are mostly shut out, even though they do most actual capital spending. As a result, investment has kept slowing even though China’s net muni bond issuance in July was three times higher than it was in March.

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“Other Americans just marched around ineffectually, waving banners and shouting antiwar slogans, but not McCain!”

A Senator Masquerading as a Gas Station (Dmitry Orlov)

John McCain is dead, and many people are celebrating whereas they should be sad. He wasn’t a friend of mankind—he was its enemy, but a really bad one. But with such grossly incompetent enemies—who needs friends? McCain did a great deal to destroy America. He devoted his entire lifetime to American destruction. To start with, he was quite effective as a protester against America’s genocidal war on the people of Vietnam. Other Americans just marched around ineffectually, waving banners and shouting antiwar slogans, but not McCain! His own father had a lot to do with starting that war, but McCain made up for that by destroying 26 American war planes. That’s quite something! If every American flyer crashed as many planes, countless innocent lives would have been saved.

Of course, he could have done even better—and he did try. He almost managed to destroy the US aircraft carrier Forrestal by setting it ablaze. To top off his illustrious military career, he surrendered to the enemy and spent five years in a Vietnamese prison. This made him a hero—in Americans’ eyes only, while the rest of the world saw in him a murderer of Vietnamese children. His “martyrdom” as a POW helped pave his way to a political career, first in Congress, then in the Senate. During his obscenely long career in national politics, McCain did what he could to make American “democracy” look like a complete joke and to hasten America’s collapse. This, by the way, wasn’t a tall order: American “democracy” had long been a cesspool—a playground for lobbyists and political technologists based on a fully gerrymandered system of fake elections. But he did his thing, and is therefore twice the hero.

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Fast getting out of hand.

Brazil Sends Army To Border As Venezuelans Flee Crisis At Home (R.)

Brazil said it was sending armed forces to keep order near the Venezuelan border area, while Peru declared a health emergency, as a regional crisis sparked by thousands of Venezuelans fleeing economic collapse escalated on Tuesday. In Brazil, where residents rioted and attacked Venezuelan immigrants in a border town earlier this month, President Michel Temer signed a decree to deploy the armed forces to the border state of Roraima. He said the move was aimed at keeping order and ensuring the safety of immigrants. Peru, meanwhile, declared a 60-day health emergency in two provinces on its northern border, citing “imminent danger” to health and sanitation.

The decree, published in the government’s official gazette, did not give more details on the risks, but health authorities have previously expressed concerns about the spread of diseases such as measles and malaria from migrants. The exodus of Venezuelans to other South American countries is building toward a “crisis moment” comparable to events involving refugees in the Mediterranean, the United Nations said this week. Temer blamed the socialist Venezuelan government of President Nicolas Maduro for the migration crisis. “The problem of Venezuela is no longer one of internal politics. It is a threat to the harmony of the whole continent,” Temer said in a televised address.

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If the US lets Syria rebuild.

Syria Ready To Take One Million Returning Refugees – Moscow (AFP)

Russia’s defence minister said on Tuesday that war-torn Syria would be ready to accept one million returning refugees, following Moscow-backed reconstruction work. “Since 2015, when towns and villages gradually started to be freed, more than one million people have returned home,” Sergei Shoigu said in comments reported by Russian news agencies. “Now every opportunity has been created for the return of roughly one million (more) refugees,” he told journalists. “Huge infrastructure reconstruction work is ongoing, the rebuilding of transport routes and security points so that Syria can begin accepting refugees.”

Russia, a long-time ally of Syria, launched a military intervention in 2015 to support the embattled regime of President Bashar al-Assad, a move that changed the course of the war. Assad and his allies have since recovered swathes of territory and the government is turning its attention to post-conflict reconstruction, with the aid of Moscow. The war that erupted in 2011, one of the most devastating conflicts since World War II, has displaced more than half of Syria’s population, including more than five million beyond its borders. Most of them fled to neighbouring countries, particularly Turkey, Jordan and Lebanon.

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It’ll take a gargantuan effort to stop this.

Just 10 Rivers Carry 95% Of All Plastic Into The Ocean (BT)

Cheap, durable and multifunctional, plastic is one of humanity’s most successful inventions. From the 1950s to 2015, we’ve produced 8.3 billion metric tons of the stuff. By now, it’s everywhere. It’s also non-biodegradable. And that’s devastating the environment. Only 9% of all plastic waste has been recycled, and another 12% has been incinerated. That means that almost 80%—nearly 6.3 billion tons—has turned into waste with no half-life to speak of: condemned to an eternity as landfill, litter or ocean-clogging junk. Every year, plastic kills around 1 million seabirds, 100,000 sea mammals and inestimable numbers of fish. The volume of plastic trash in the world’s oceans is currently estimated to be around 150 million tons. No less than eight million tons are added to that every year—that’s one truckload every minute.

Between 0.5 and 2.75 million tons come from rivers alone. Large rivers are particularly efficient conveyors of plastic waste to the oceans, especially in countries lacking a well-developed waste management infrastructure. Up to 95% of river-borne plastic comes from just 10 rivers, scientists at the Helmholtz Center for Environmental Research in Leipzig, Germany have found. The scientists analysed data on both microplastic debris (<5mm) such as beads and fibres, as well as microplastic objects (plastic bottles, bags, etc.) from 79 sampling sites on 57 of the world’s largest rivers, singling out the 10 mapped out here as the biggest culprits, due to “mismanagement of plastic waste in their watersheds”.

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Nicotine addiction.

Bees Develop Preference For Pesticides (PA)

Bumblebees acquire a taste for pesticide-laced food that can be compared to nicotine addiction in smokers, say scientists. The more of the nicotine-like chemicals they consume, the more they appear to want, a study has shown. The findings suggest that the risk of potentially harmful pesticide-contaminated nectar entering bee colonies is higher than was previously thought. In a series of studies, a team of British researchers offered bumblebees a choice of two sugar solutions, one of which was laced with neonicotinoid pesticides. They found that over time the bees increasingly preferred feeders containing the pesticide-flavoured sugar.

Dr Richard Gill, from the Department of Life Sciences at Imperial College London, said: “Given a choice, naive bees appear to avoid neonicotinoid-treated food. However, as individual bees increasingly experience the treated food they develop a preference for it. “Interestingly, neonicotinoids target nerve receptors in insects that are similar to receptors targeted by nicotine in mammals. “Our findings that bumblebees acquire a taste for neonicotinoids ticks certain symptoms of addictive behaviour, which is intriguing given the addictive properties of nicotine on humans, although more research is needed to determine this in bees.” Controversial neonicotinoid pesticides are chemically similar to nicotine, the addictive compound in tobacco.

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Aug 272018
 


Hasui Kawase Moon at Megome (woodblock print) 1930

 

BIS Warns Of “Perfect Storm” For Global Economy (ZH)
BIS’s Carstens Warns Of Economic Risks Of Protectionism (R.)
No-Deal Brexit Thrusts UK Into ‘Legal Vacuum’ – Labour (G.)
Britain Prepares for War Against Russia (SCF)
UK’s Biggest Payday Lender Wonga ‘On The Brink Of Collapse’ (G.)
Malaysia’s Reaction Shows China Needs To Review Belt And Road Plan (SCMP)
China To Block More Than 120 Offshore Cryptocurrency Exchanges (SCMP)
Michael Cohen’s Attorney Backpedals On Trump-Russia Claims (ZH)
Becoming Serfs (Chris Hedges)
Former Top Vatican Official Says Pope Should Resign Over Abuse Crisis (R.)
‘Foreign Specialists’ May Stage Chemical Attack In Syria In 2 Days – Russia (RT)
Greece Tops Eurozone In Overtaxation (K.)
Lesbos Refugees Pushed To ‘Absolute Breaking Point’, Warns Report (Ind.)

 

 

Carstens’ comments on letters of credit are interesting. Non-US banks will need access to dollars, or trade stops. Not sure where Tyler got that quote.

BIS Warns Of “Perfect Storm” For Global Economy (ZH)

Carstens highlighted the potential catalysts that could unleash the “perfect storm” he highlighted as the key risk resulting from the interaction of real and financial risks, namely: the trillions in outstanding dollar-denominated debt – whereby a dollar-shortage threatening to cripple international trade – and the growing risk of currency wars:

Consider that non-US banks provide the bulk of dollar-denominated letters of credit, which in turn account for more than 80% of this source of trade finance. The Great Financial Crisis highlighted the fragility of this setup, since non-US banks depend on wholesale markets to obtain dollars. Ten years on, we should not forget how the dramatic fall in trade finance in late 2008 played a key part in globalising the crisis. Any dollar shortage among non-US banks could cripple international trade. On top of that, trade skirmishes can easily escalate into currency wars, although I hope that they will not.

As we saw earlier with Mexico, imposing tariffs on imports tends to weaken the target country’s currency. The depreciation could then be construed as a currency “manipulation” that seemingly justifies further protectionist measures. If currency wars break out, countries may put financial markets off-limits to foreign investors or, on the other side, deliberately cut back foreign investment, politicising capital flows. In addition, we must be mindful of long-observed knock-on effects from tighter US monetary conditions, given the large stock of dollar borrowing by non-banks outside the United States, which has now reached $11.5 trillion.”

His conclusion: “Policymakers in advanced economies should not shrug off the growing evidence that abrupt exchange rate depreciations reduce investment and economic growth in emerging market economies. This has implications for everybody, in that weaker economic activity reduces demand for exports from advanced economies.” “In the long term, protectionism will bring not gain but only pain,” Carstens said, echoing a familiar talking point of establishment economists. “Not just for the United States, but for us all.”

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Yeah, well, so called free trade is their thing.

BIS’s Carstens Warns Of Economic Risks Of Protectionism (R.)

Agustin Carstens, general manager of the Bank of International Settlements, on Saturday delivered a scathing critique of rising protectionism, a not-so-subtle rebuke to U.S. President Donald Trump’s use of tariffs and trade talks to wring concessions from China, Mexico and many other countries. Reversing globalization “could increase prices, raise unemployment and crimp growth,” Carstens, the former head of Mexico’s central bank, told fellow former and current central bankers at the Kansas City Federal Reserve Bank’s annual economic symposium here. Higher tariffs could drive up U.S. inflation and force the Fed to raise rates, driving up the dollar and hurting both U.S. exporters and emerging market economies in the process, Carstens said

Protectionism also threatens “to unsettle financial markets and put a drag on firms’ capital spending, as investors take fright and financial conditions tighten,” he said. The BIS released a research paper at the same time as Carstens’ speech that estimated revoking the North American Free Trade Agreement, as Trump has threatened, would mean a loss to GDP of $37 billion in Canada, $22 billion in Mexico, and $40 billion in the United States, with non-tariff trade barriers accounting for the lion’s share of the losses. Wages would also fall across North America, the research found.

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It’s already a given. There’s no time left.

No-Deal Brexit Thrusts UK Into ‘Legal Vacuum’ – Labour (G.)

Theresa May and the government would face a race against time to pass a slew of new laws, or risk creating an “unsustainable legal vacuum”, if Britain plunged out of the EU without a deal, Labour’s Keir Starmer has warned. Dominic Raab insisted last week that the government had the legislation in place to cope, if Britain is forced to leave in March 2019 without a withdrawal agreement. “Our laws will be on the statute book, the staff will be in place, the teams will be in post and our institutions will be ready for Brexit – deal, or no deal,” the Brexit secretary said. But Labour’s analysis suggests new legislation would have to be passed hastily in four key policy areas: • EU citizens’ rights. • Immigration rules for EU travellers entering Britain. • Criminals held under the European arrest warrant. • The Irish border.

The government has long promised an immigration bill – but has not yet even published a white paper. The home affairs select committee warned recently that “if there’s no deal, [the immigration system] is going to be completely chaotic as no one will know what the arrangements will be until the very last minute and there is going to be no time for anyone to plan at all”. The government has long promised an immigration bill – but has not yet even published a white paper. The home affairs select committee warned recently that “if there’s no deal, [the immigration system] is going to be completely chaotic as no one will know what the arrangements will be until the very last minute and there is going to be no time for anyone to plan at all”.

Several new regulators or other public bodies would also have to be created, including in medicines and aviation, Labour claims. The withdrawal bill gives ministers some powers to do this, but they are tightly curtailed. Starmer described last week’s release of 24 technical notices on how the government is preparing for a no deal as a “poorly executed PR stunt designed to convince Tory MPs to back the prime minister’s discredited Chequers proposal”. He said the government has “barely scratched the surface” of what would need to be done to prepare the UK for a no-deal scenario, and there was a serious risk of an “unsustainable legal vacuum”.

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Britain and the military-industrial complex impoverish the population.

Britain Prepares for War Against Russia (SCF)

The Brexit pantomime is taking place in an era in which it is recorded that “As benefits are cut and rents soar, Britain has seen a staggering rise in homelessness: the number of rough sleepers in England alone has more than doubled since 2010. Almost 1.2 million older people in Britain, as well as another one million disabled people, are living without the social care they need for basics such as eating, dressing and washing. It’s horrific: severely ill people forced to wait 14 hours to go to the toilet or wheelchair users who, with no assistant to help them cook, are now malnourished.” But this dreadful state of affairs means nothing to those who lack for nothing — which includes politicians of the governing Conservative Party who demand that more taxpayers’ money must be spent on military hardware.

The previous defence minister, Michael Fallon (who had to resign because he was found out to have indulged in some sexual shenanigans), told the BBC last year that “we will be adding to defence, there will be new equipment and the budget will grow every year” and the present one, Gavin Williamson (the man who said that Russia should “go away and shut up”), demanded in June that Britain increase its annual military spending by about $25 billion. The strange thing about agitating to spend more money on armaments is that, apart from an indubitable terrorist menace, there is no military threat whatever to Britain. On the other hand, there is a social crisis of the most serious magnitude.

As the New York Times reported in May, “the protracted campaign of budget cutting, started in 2010 by a government led by the Conservative Party, has . . . yielded a country that has grown accustomed to living with less, even as many measures of social well-being — crime rates, opioid addiction, infant mortality, childhood poverty and homelessness — point to a deteriorating quality of life.” But the government’s answer lies in buying missiles and whooshing new aircraft, and two aircraft carriers of incalculable expense and nuclear submarines that the BBC reports are to cost “£31 bn (including inflation), with a contingency of a further £10 bn, spread over 35 years…”

[..] So on August 18 the UK’s Daily Express newspaper, a sad wreck of its former self, and now competing with the Daily Mail in publicising ‘celebs’ and headlining articles of ultra-nationalist tripe, ran a piece headlined “Royal Navy’s £3bn warship launches to tackle ‘frightening’ Russians.” Just how it’s going to deter anyone is not explained, because it hasn’t any aircraft and won’t be operational until 2021. It cost over 4 billion dollars and its yet-to-arrive 36 F-35 aircraft will cost a minimum of 90 million dollars each. This is in a country where the Joseph Rowntree Foundation records that some 14 million people live in poverty – more than one in five of the population.

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Payday loans are the lowest point in a society. If that doesn’t even work anymore….

UK’s Biggest Payday Lender Wonga ‘On The Brink Of Collapse’ (G.)

Britain’s biggest payday lender, Wonga, is teetering on the brink of collapse following a surge of customer compensation claims in recent weeks that could cause it to call in administrators. The short-term loan provider has reportedly lined up accountancy firm Grant Thornton to handle a potential administration of the company should its board believe it is unable to avoid falling into insolvency. The report from Sky News said Wonga could appoint Grant Thornton as soon as this week. The flood of claims facing the company relate to loans taken out before 2014, when Wonga was the poster child for outrage in the payday lending industry that resulted in rules capping the cost of borrowing.

Campaigners claimed the firm and others in the industry fleeced consumers with high interest rates and targeted vulnerable customers with slick marketing. Wonga has shown signs of mounting difficulties in recent weeks. Earlier this month, it emerged the company received a £10m emergency cash injection from shareholders to save it from going bust. At the time, a spokesman said the firm was facing “a marked increase in claims related to legacy loans, driven principally by claims management company activity”. Should the company fall into administration, it would signal a remarkable fall from its previous status as one of the fastest-growing financial companies in the UK. The company was once touted for a stock exchange listing that could have valued it at more than $1bn (£780m) but was recently reported to be worth just $30m.

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Don’t even remember when I first said BRI is a Chinese scheme to export overcapacity and make others pay for it. Others who, of course, will become debt slaves because of it.

Malaysia’s Reaction Shows China Needs To Review Belt And Road Plan (SCMP)

Five years ago in September, during a visit to Kazakhstan, President Xi Jinping first proposed building the Silk Road Economic Belt, which included countries along the ancient Silk Road leading through Central Asia and the Middle East to Europe. In October that year, while visiting Indonesia, he followed up by suggesting a “21st Century Maritime Silk Road”, tracing the old trading routes that took Chinese merchants to Southeast Asia, Arabian countries and all the way to eastern Africa. Since then, Xi’s proposals – collectively known as the “Belt and Road Initiative” – have promised trillions of US dollars worth of investments in infrastructure to enhance connectivity and boost trade in more than 60 countries.

[..] From last month, state media have ramped up propaganda to mark the fifth anniversary of the grand plan and catalogue achievements ranging from China-built railways in Ethiopia to the China-owned Greek port of Piraeus. But the celebratory mood was somewhat marred by Malaysia’s decision last week to cancel two China-financed mega projects in the country, the US$20 billion East Coast Rail Link and two gas pipeline projects worth US$2.3 billion. Malaysian Prime Minister Mahathir Mohamad said his country could not afford those projects and they were not needed at the moment. Interestingly, Mahathir announced the decision even before leaving China, and said both Xi and Premier Li Keqiang understood the reasons behind the cancellations and accepted them.

The Chinese government put on a brave face in response, with a foreign ministry spokesman saying it was inevitable there would be problems or different points of views between any two countries. But Mahathir’s announcement has transcended bilateral cooperation, and should serve as a timely warning to the Chinese leadership about the importance and urgency with which they should conduct a comprehensive review of the belt and road strategy and recalibrate it by reining in its ambitious investment plans. Indeed, Mahathir’s decision is just the latest setback for the plan, as politicians and economists in an increasing number of countries that once courted Chinese investments have now publicly expressed fears that some of the projects are too costly and would saddle them with too much debt.

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Volume is way down, as is price. Wyy the heavy hand now?

China To Block More Than 120 Offshore Cryptocurrency Exchanges (SCMP)

China is poised to block more than 120 foreign cryptocurrency exchanges as part of the government’s broader crackdown on activities related to digital money, according to state media. Authorities will block access in China to 124 websites operated by offshore cryptocurrency exchanges that provide trading services to citizens on the mainland, the Shanghai Securities News, a newspaper affiliated with the country’s financial and markets regulators, reported on Thursday. It said authorities will also continue to monitor and shut down domestic websites related to cryptocurrency trades and initial coin offerings (ICOs), and ban payment services from accepting cryptocurrencies, including bitcoin.

The newspaper cited people close to the Leading Group of Internet Financial Risks Remediation, which was set up by China’s cabinet in 2016 and headed by Pan Gongsheng, a deputy governor of the People’s Bank of China – the country’s central bank. The report marks the latest effort by Beijing to intensity the clampdown on cryptocurrency activities because of concerns about financial instability. Censors recently shut down at least eight blockchain and cryptocurrency-focused online media outlets, some of which raised several million dollars in venture capital. These entities found their official public accounts on WeChat blocked on Tuesday evening, owing to violations against new regulations from China’s top internet watchdog.

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I dealt with Lanny David a few days ago in Fixers. No surprise he turns out to lie about this too. I asked in that article if Cohen was sure he wanted him as his lawyer. He must be asking himself that now.

Michael Cohen’s Attorney Backpedals On Trump-Russia Claims (ZH)

Lanny Davis – the attorney for Michael Cohen, has massively backpedaled on “confident assertions” that Cohen would share information with investigators that President Trump knew of Russian efforts to undermine Democratic nominee Hillary Clinton – a lifelong friend of Davis’. The Washington Post reported on Sunday that Davis said in an interview that he is “no longer certain about claims he made to reporters on background and on the record in recent weeks about what Cohen knows about Trump’s awareness of the Russian efforts.” “Davis told The Washington Post that he cannot confirm media reports that Cohen is prepared to tell special counsel Robert S. Mueller III that Trump had advance knowledge of the 2016 Trump Tower meeting” -WaPo

CNN reported in July that Cohen claimed to have witnessed Trump approving the meeting between Trump Jr. and Russian attorney Natalia Veselnitskaya, arranged by an associate of opposition research firm Fusion GPS. The day after CNN’s report, the Washington Post – using an “anonymous source” they now admit was Davis, peddled the same story that “Cohen had told associates that he witnessed an exchange in which Trump Jr. told his father about an upcoming gathering in which he expected to get information about Clinton,” however the Post didn’t say Trump Jr. told Sr. it was the Russians. “I should have been more clear — including with you — that I could not independently confirm what happened,” Davis said, adding perhaps the most difficult four words for an attorney to utter: “I regret my error.”

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“..The New Deal programs were paid for by taxing the rich. Even in the 1950s, during the Eisenhower presidency, the top marginal rate was 91%..”

Becoming Serfs (Chris Hedges)

We live in a new feudalism. We have been stripped of political power. Workers are trapped in menial jobs, forced into crippling debt and paid stagnant or declining wages. Chronic poverty and exploitative working conditions in many parts of the world, and increasingly in the United States, replicate the hell endured by industrial workers at the end of the 19th century. The complete capture of ruling institutions by corporations and their oligarchic elites, including the two dominant political parties, the courts and the press, means there is no mechanism left by which we can reform the system or protect ourselves from mounting abuse. We will revolt or become 21st-century serfs, forced to live in misery and brutally oppressed by militarized police and the most sophisticated security and surveillance system in human history while the ruling oligarchs continue to wallow in unimagined wealth and opulence.

“The new tax code is explosive excess,” the economist Richard Wolff said when we spoke in New York. “We’ve had 30 or 40 years where corporations paid less taxes than they ever did. They made more money than they ever did. They have been able to keep wages stagnant while the productivity of labor rose. This is the last moment historically they need another big gift, let alone at the expense of the very people whose wages have been stagnant. To give them a tax bust of this sort, basically reducing from 35% to 20%, is a 40% cut. This kind of crazy excess reminds you of the [kings] of France before the French Revolution when the level of excess reached an explosive social dimension. That’s where we are.”

When capitalism collapsed in the 1930s, the response of the working class was to form unions, strike and protest. The workers pitted power against power. They forced the oligarchs to respond with the New Deal, which created 12 million government-funded jobs, Social Security, the minimum wage and unemployment compensation. The country’s infrastructure was modernized and maintained. The Civilian Conservation Corps (CCC) alone employed 300,000 workers to form and maintain national parks. “The message of the organized working class was unequivocal,” Wolff said. “Either you help us through this Depression or there will be a revolution.” The New Deal programs were paid for by taxing the rich. Even in the 1950s, during the Eisenhower presidency, the top marginal rate was 91%.

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True, but it won’t make any difference.

Former Top Vatican Official Says Pope Should Resign Over Abuse Crisis (R.)

Pope Francis said on Sunday he would not respond to a former top Vatican official who accused him of having known for years of allegations of sex abuse by a prominent U.S. cardinal, calling on the pontiff to resign in an unprecedented broadside against the pope by a Church insider. Francis, speaking to reporters on the plane returning from a trip to Dublin, said dismissively that a statement containing the accusations “speaks for itself”. In a detailed 11-page bombshell statement given to conservative Roman Catholic media outlets during the pope’s visit to Ireland, Archbishop Carlo Maria Vigano accused a long list of current and past Vatican and U.S. Church officials of covering up the case of Cardinal Theodore McCarrick, who resigned last month in disgrace.

In remarkably blunt language, Vigano said alleged cover-ups in the Church were making it look like “a conspiracy of silence not so dissimilar from the one that prevails in the mafia”. “Pope Francis has repeatedly asked for total transparency in the Church,” wrote Vigano, who has criticized the pope before. “In this extremely dramatic moment for the universal Church, his extremely dramatic moment for the universal Church, he must acknowledge his mistakes and, in keeping with the proclaimed principle of zero tolerance, Pope Francis must be the first to set a good example for cardinals and bishops who covered up McCarrick’s abuses and resign along with all of them,” Vigano said.

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Russia is getting very specific, as per the time, location, chemicals used etc.

‘Foreign Specialists’ May Stage Chemical Attack In Syria In 2 Days – Russia (RT)

“Foreign specialists” have arrived in Syria and may stage a chemical attack using chlorine in “the next two days,” the Russian Defense Ministry said. This will be filmed for international media to frame Damascus forces.
Defense Ministry Spokesman Major General Igor Konashenkov said the operation is planned to unfold in the village of Kafr Zita in Syria’s northwestern Hama Province in “the next two days.” Konashenkov said that “English-speaking specialists” are already in place to use “poisonous agents.” While a group of residents from the north has been transported to Kafr Zita and is currently being prepared “to take part in the staging of the attack” and be filmed suffering from supposed “‘chemical munitions’ and ‘barrel bombs’ launched by the Syrian government forces.”

The groups of residents will be used to assist “fake rescuers from the White Helmets.” They will be filmed apparently suffering from the effects of chemical weapons and then be shown in “the Middle Eastern and English-language media.” The defense ministry earlier warned that the US, UK, and France are preparing to use the planned attack as a pretext for airstrikes against Syria. The USS The Sullivans, an Arleigh Burke-class Aegis guided missile destroyer, was already deployed to the Persian Gulf a couple of days ago. On August 22, US National Security Adviser John Bolton stated that “if the Syrian regime uses chemical weapons, we will respond very strongly and they really ought to think about this a long time.”

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Lowest incomes, highest taxes. That’s recovery. And there’s much more to come.

Greece Tops Eurozone In Overtaxation (K.)

Greece has taken the lead among eurozone countries in the taxes-to-GDP ratio, rising from 13th place in 2008, before the country requested a bailout to stabilize its finances, to first place as of 2016. A tax-to-GDP ratio of over 27% is unprecedented in the country, at least since the restoration of democracy in 1974. At the same time, Greece set a record in terms of the speed with which the “taxation shock” was implemented, with the tax-to-GDP ratio jumping by 7 percentage points over eight years of bailouts.

Direct or indirect overtaxation has been the main driver for the reduction of the huge deficits Greece had to tackle at the beginning of the economic crisis. In 2008, taxes on production and imports accounted for 12.6% of GDP, while in 2017 the figure rose to 17.5%, according to data from the Hellenic Statistical Authority (ELSTAT). Taxes on income stood at 8.1% in 2008 and 10.2% in 2017. In social security contributions the ratio stood at 12.7% in 2008, reaching 14.6% in 2017.

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Give it some time, and it’ll get as bad as Nauru. If Merkel and Juncker would have wanted to stop this, they’ve had plenty time. They didn’t and they don’t.

Lesbos Refugees Pushed To ‘Absolute Breaking Point’, Warns Report (Ind.)

Thousands of refugees are living in perpetual fear and at risk of developing serious illnesses as the situation on the Greek island of Lesbos reaches “absolute breaking point”, new research shows. A report by Refugee Rights Europe warns that physical and mental health problems are rife on the island, as unsanitary conditions contribute to the spread of disease and growing desperation grips the men, women and children who are stuck there. Reports of violence and racially motivated attacks on refugees by police have also become commonplace, with nearly half of the 311 asylum seekers surveyed for the report saying they had been attacked by officers – usually with tear gas.

There are currently an estimated 8,000 refugee men, women and children on Lesbos, making it the largest host out of the Greek islands. A third come from Syria, 27% are from Afghanistan, 13% are Iraqi and the remaining are mainly from African countries. A series of accounts from asylum seekers in the report exposes the squalor and dangers they endure, including only having access to a shower once every few weeks and being unable to access medical care for their sick children. Respondents also reported being too afraid to leave their tents at night due to lack of security in the camps. Others expressed suicidal thoughts, with one refugee telling researchers: “I prefer to die than be here”.

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