Sep 052024
 
 September 5, 2024  Posted by at 8:41 am Finance Tagged with: , , , , , , , , , ,  75 Responses »


René Magritte Pandora’s box 1951

 

Tyranny Is Closer Than You Realize (Paul Craig Roberts)
Popular Conservatives Tricked Into $10M Russian Influence Campaign: DOJ (ZH)
US Justice Department Reveals Legal Action Against RT (RT)
Biden To Take ‘Law Enforcement Action’ Against RT – CNN (RT)
Persecution of Sputnik, RT Contributors Highlights US Hypocrisy (Sp.)
Harris Denounced Unfettered Free Speech in 2019 CNN Interview (Turley)
Fake News Now At Peak As Kamala Faces CNN “interview” (Jay)
Harris-Walz: The Ticket Of COVID Tyranny (Rich)
Trump To Fight Revamped J6 Charges (RT)
Zelensky Vows To ‘Hold’ Occupied Russian Territory (RT)
Ukraine ‘Weaponizing’ Religion – Church of Jerusalem (RT)
Rothschild Helped Ukraine Clinch Debt Restructuring – Reuters (RT)
‘Looming Threat’ From Russia Sparks ‘Major Rethink’ Of EU Defense Policy (RT)
Starlink Agrees To Comply With Brazil’s Orders To Block X (ZH)
Pavel Durov – Freedom To Play Fool, Stock Speculator, Fraudster (Helmer)
Mongolia Showed Its Greatness To The World (SCF)
Truth is being Removed from the Western World (Paul Craig Roberts)

 

 

 

 

Emerald

 

 

Hawley

 

 

SAVE Act
https://twitter.com/i/status/1831010091849421005

 

 

Vivek
https://twitter.com/i/status/1831180765234655471

 

 

Trump Nordstream

 

 

Trump Fridman

 

 

 

 

Will they try to lock him up for a year, 6 weeks before the election?

Tyranny Is Closer Than You Realize (Paul Craig Roberts)

It is strange that there is no discussion of it, but in two weeks and one day on September 18 Donald Trump, the Republican candidate for president in the November election in two months, is scheduled by a corrupt Democrat “judge” to be sentenced for 34 felony counts pulled out of thin air by a corrupt Democrat prosecutor for how Trump’s accountants reported an expense. Trump’s accountants reported the expense as a legal expense, which was a reasonable classification of the expense, but the corrupt Democrat prosecutor said it was a campaign contribution by Trump to his own campaign and that by reporting it as a legal expense he is guilty of interfering in the election. It is this absurd personal opinion of the corrupt Democrat prosecutor–are there any Democrat prosecutors who are not corrupt?– that turned a non-issue of how an expense was reported into 34 felony charges.

In fact, there is only one charge. But the corrupt Democrat prosecutor wrote it up 34 different times in order to create an appearance of large scale crime. Few jurors have the intelligence to see the wool being pulled over their eyes, especially when all they hear from the whore media is that Trump is a criminal and a threat to democracy, a traitor to America, a Russian agent, an insurrectionist, and so on. No one in the whore American media tells them any different. What is the Democrat judge going to do on September 18? I can’t say that I know. If common sense were involved, the Democrat judge would have set the sentencing date after the election, or he would issue a suspended sentence. But common sense is not part of the script. According to the scuttlebutt, the Democrat Justice (sic) Department has decided on a one year prison sentence.

According to the scuttlebutt the Democrat Justice (sic) Department has been working it out with Rikers prison a way of accommodating Trump’s Secret Service protection that is required by federal law for former presidents 24/7. Whether the Secret Service will do any better job of protecting Trump in prison than they did at his Pennsylvania rally is the open question. The puzzling aspect of the September 18 sentencing is why bother? All of the theft mechanisms used in the swing states to deny Trump his 2020 victory have been legalized. In the swing states it is now legal to steal the election, so why bother sentencing Trump? Is it chaos that the elite want? Are the tyrannical elite hoping that Trump’s imprisonment will cause people to pour into the streets, thus permitting the Democrat regime to declare an insurrection and arrest all Republican members of Congress, all Republican governors, and all Republican state legislatures?

Will torture uncover a plot and lead to the arrest and detention of all white conservatives and registered Republican voters in detention camps that already exist, allegedly for hurricane victims? It would happen so fast that there would be no chance of organized resistance. I agree, this sounds far-fetched, so what is the point of the sentencing? Justice? From Democrats? What a joke!! Democrats care nothing for justice. They are after power. At all costs. One would think that the issue of one political party sentencing the presidential candidate of the other political party to prison six weeks prior to the election would be a major issue dominating the news and public discussion. But it is not. There is no information. Only scuttlebutt.

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They allegedly paid them well.

Popular Conservatives Tricked Into $10M Russian Influence Campaign: DOJ (ZH)

The DOJ has accused several conservative influencers of unwittingly working for a Kremlin-funded media outlet. A federal indictment unsealed on Wednesday alleges that a Tennessee-based media company, later identified as Tenet Media, received nearly $10 million from employees of Russian state-backed media company, Russia Today (RT), as part of “a scheme to create and distribute content to U.S. audiences with hidden Russian government messaging.” The DOJ claims that RT and two of its employees – Kostiantyn “Kostya” Kalashnikov and Elena “Lena” Afanasyeva – worked to funnel money to Tenet Media as part of a series of “covert projects” aimed at shaping narratives within Western audiences. The indictment specifically notes that the influencers – including Tim Pool, Benny Johnson, Dave Rubin and Lauren Southern – had no idea they were taking Russian money, and were deceived.

They were told by Tenet founder Lauren Chen – who allegedly knew the true source of the funds – that the money was from a wealthy private investor named “Eduard Grigoriann.” At least one of the influencers asked for a profile on Grigoriann before signing a contract – and was given a fabricated one-page profile. This was apparently sufficient, as two of the commentators (believed to be Tim Pool and Benny Johnson) signed contracts which paid Pool $100,000 per podcast, while Johnson was paid $400,000 per month plus a $100,000 signing bonus for “four weekly videos.” While Pool and Johnson have issued statements (below), it’s been pointed out that Lauren Chen has recently been trying to divide Donald Trump’s base…

In a Wednesday statement on X, Pool says that should the allegations prove true, “I as well as the other personalities and commentators were deceived and are victims,” and ends by telling haters to “eat my irish ass.” Johnson says “Our lawyers negotiated a standard, arms length deal, which was later terminated,” adding “We are disturbed by the allegations in today’s indictment, which make clear that myself and other influencers were victims in this alleged scheme.” We’re sure the timing of this, two months before the election, was a total coincidence. How long has the DOJ been sitting on this? Why did it drop a day after we learned that a Chinese spy was working for NY Gov. Kathy Hochul, or that Poole was going to sue Kamala Harris for defamation?

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“..trick Americans into unwittingly consuming foreign propaganda.”

US Justice Department Reveals Legal Action Against RT (RT)

The US Department of Justice has charged two Russians it identifies as RT employees with money laundering and working as foreign agents for their alleged role in pushing video content that sowed “discord and division” in the US. In a criminal indictment unsealed on Wednesday, US prosecutors claimed that Konstantin Kalashnikov and Elena Afanasyeva financed and directed a Tennessee-based production company that published English-language videos to various social media platforms aimed at amplifying “domestic divisions in the United States.” These videos were viewed more than 16 million times on YouTube alone, the indictment alleged, and, according to FBI Director Christopher Wray, represented an attempt to “trick Americans into unwittingly consuming foreign propaganda.”

Producing videos that highlight social and political divisions in the US is not a crime. However, the Justice Department claimed that Kalashnikov and Afanasyeva broke the law by not registering as foreign agents. Back in 2017, the Department of Justice forced the now-defunct RT America to register as a foreign agent, after a host of US intelligence agencies claimed that RT had helped to elect Donald Trump by publishing “negative coverage” of Hillary Clinton and criticizing the US’ “corrupt political establishment.” Kalashnikov and Afanasyeva face a maximum sentence of five years in prison for violating the Foreign Agents Registration Act, and 20 years for money laundering. However, the charges against them will likely never be proven in an American courtroom, as the US has no extradition treaty with Russia.

The two Russians were also sanctioned by the US Treasury Department on Wednesday, along with RT Editor-in-Chief Margarita Simonyan and three other senior RT employees. Simonyan dismissed the charges, responding “great job, team!” on Telegram. In a press conference on Wednesday, US Attorney General Merrick Garland said that the allegations against Kalashnikov and Afanasyeva, as well as a separate Russian scheme to allegedly spread anti-Ukraine content online, “make clear the ends to which the Russian government, including at its highest levels, is willing to go to undermine our democratic process.”

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RT’s answer is clear.

Biden To Take ‘Law Enforcement Action’ Against RT – CNN (RT)

The administration of US President Joe Biden is planning to accuse Russia of meddling in this year’s presidential election, and will announce “law enforcement action” against those supposedly responsible, CNN reported on Wednesday. RT will be the prime target of this action, the network stated. The White House will accuse Russia on Wednesday of “a sustained effort to influence the 2024 US elections” by using “Kremlin-run media” to spread so-called “disinformation,” CNN reported, citing US government sources. Alongside a public condemnation from the White House, the US Department of Justice will announce “law enforcement action targeting the covert Russian campaign,” the network said. RT is “a major focus of the US announcement,” CNN added, noting that “US officials see the Russian outlet as a key piece of Kremlin propaganda efforts.”

“Dear CNN,” RT’s press office responded following Wednesday’s article. “We certainly have a response. Actually, we have several, but we couldn’t decide on one (we even thought of running an office poll), so here they are:

1. Ha!

2. Hahahaha!

3. HAHAHAHAHAHAHAHAHAHA

4. 2016 called and it wants its clichés back

5. Three things are certain in life: death, taxes and RT’s interference in the US elections

6. We gotta earn our Kremlin paycheck somehow

7. Somewhere, Secretary Clinton is sad that it’s not because of her

SINCERELY,

RT Press Office”

Democrats like Biden have accused Russia of interfering in the last two presidential elections. During the 2016 and 2020 campaigns, US intelligence agencies repeatedly claimed that Moscow was deploying hackers and using “information warfare” to swing the vote in favor of Donald Trump. These allegations, coupled with claims that Trump had colluded with Moscow to win the election, formed the basis for a two-year investigation by Special Counsel Robert Mueller, but were ultimately found to be baseless. In 2020, more than 50 “former intelligence officials” published a letter claiming that files on Hunter Biden’s laptop – which implicated the Biden family in multiple foreign corruption schemes – were fabricated by Russia. The laptop’s contents have since been proven genuine.

Throughout the past decade, American officials have repeatedly accused RT of spreading “disinformation” – a term that these officials rarely define. Back in 2017, the Department of Justice forced RT America to register as a foreign agent, after a host of US intelligence agencies claimed that RT had helped to elect Trump by publishing “negative coverage” of Clinton and criticizing the US’ “corrupt political establishment.” RT America ceased operations in 2022 after the network was dropped by its US distributors in response to the Ukraine conflict.

Despite their claims of “Russian interference” in US elections being repeatedly proven to be without foundation, American spies have stuck to them. Earlier this summer, the Office of the Director of National Intelligence (ODNI) in Washington alleged that the Kremlin had mounted a “whole-of-government” effort to turn the American public against Biden and his fellow Democrats. This accusation paved the way for the FBI to raid the homes of Scott Ritter, a former UN weapons inspector and RT contributor, and Dimitri K. Simes, a Soviet-born US political pundit who hosts a show on domestic Russian television. Ritter described the raid as an attempt to intimidate “anyone who goes against official [US] policies and particularly against the deep state.”

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“..it is not the Russians but the US government that is engaged in an attempt to influence and control the popular narrative for its own benefit.”

Persecution of Sputnik, RT Contributors Highlights US Hypocrisy (Sp.)

The United States’ persecution campaign against journalists and political dissidents with ties to Russian media accelerated Wednesday when new repressive measures were announced against several entities. New sanctions were announced against 10 individuals and two organizations under the umbrella of the Rossiya Segodnya media group, including RIA Novosti, RT, Sputnik and Ruptly. The sanctions target these entities for alleged “hostile interference in the presidential elections,” the US Treasury Department claimed. The measures also target editor-in-chief of Rossiya Segodnya and RT Margarita Simonyan and several top managers at RT. Ex-CIA analyst and former State Department counterterrorism expert Larry Johnson spoke with Sputnik Wednesday about the startling development, the latest attempt by the Biden administration to shape political discourse online and in the media.

“The latest stunt pulled by the Biden Department of Justice to declare all of these sanctions on Russia for alleged interference in the US political system is a level of hypocrisy that is staggering in its magnitude and in its foulness,” Johnson said.“Let’s be clear about one thing: the one country in the world that has been involved with more interference in the internal political affairs of every other country is the United States. During the reign of President Eisenhower in the 1950s, there were 170 different covert actions carried out against other countries.” “This year [the US has] allocated almost $4 billion to interfere or meddle in the political affairs of other countries,” he continued. “$315 million of that goes to the National Endowment for Democracy. $300 million is specifically what they call counter-Russian influence. And another $2.9 billion is for ‘democracy’ programs. And these have been used basically to run propaganda, to pay people, to organize ‘democracy’ programs in places like Georgia.”

The US frequently funds pro-Western media and non-governmental organizations (NGOs) in foreign countries it targets for regime change to pave the way for a pro-US government to come to power. Author and journalist William Blum documented over 50 examples of significant US interference in other countries since World War II in his classic book Killing Hope, largely based on the shocking revelations of ex-CIA agent Philip Agee. More recently the US has interfered in countries such as Brazil, Indonesia and Ukraine, paving the way for the latter country’s extremist anti-Russia government through its support for the Euromaidan coup in 2014. “I don’t know how many millions of dollars are allocated to the CIA for additional covert actions designed to plant stories in media, to create electronic media, to influence social networks across the board,” Johnson continued. “It’s the United States that’s meddling.

With respect to the entire bogus claim that Russia interfered in the 2016 election, we now know without a doubt that that was a Democrat operation led by Hillary Clinton and her team,” he added. “Everything we were told about Donald Trump and the Russians was a lie. I was one of the few writing about it at the time to call it out… The notion that RT is manipulating and influencing the presidential election is beyond laughable,” he claimed, noting that the Russian television channel’s app is banned from many app stores in the West while its content has been removed from YouTube and other websites. “How is a news network that’s not allowed to broadcast and that’s shut [out] of social media in the United States supposed to influence [the election]? … It just goes across the board that they’re going to try to attack any kind of alternative voice in the media.”

Johnson noted that he has been subjected to a “pre-interview” with most television news outlets he has appeared on, such as the BBC, MSNBC, Fox News, CBS and the CBC, during which employees for each outlet attempted to ascertain what he would say when interviewed live on air. RT was one of only two outlets that never subjected him to the practice, he said. “It’s the so-called ‘free democracies’ that want to run that litmus test,” he said. Johnson said the recent persecution of figures connected to RT and Sputnik is merely another attempt to run the “Russiagate” playbook, attempting to discredit alternative media outlets that critique US foreign policy. “Electoral interference” continues to take place, Johnson claimed, but it is not the Russians but the US government that is engaged in an attempt to influence and control the popular narrative for its own benefit.

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“..Donald Trump, he has 65 million Twitter followers, he has proven himself to be willing to obstruct justice – just ask Bob Mueller..”

Harris Denounced Unfettered Free Speech in 2019 CNN Interview (Turley)

I previously wrote how a Harris-Walz Administration would be a nightmare for free speech. Both candidates have shown pronounced anti-free speech values. Now, X owner Elon Musk and former independent presidential candidate Robert F. Kennedy Jr. have released the interview to show the depths of the hostility of Harris to unfettered free speech. I have long argued that Trump and the third-party candidates should make free speech a central issue in this campaign. That has not happened. Kennedy was the only candidate who was substantially and regularly talking about free speech in this election. Yet, Musk and Kennedy are still trying to raise the chilling potential of a Harris-Walz Administration. In my book “The Indispensable Right: Free Speech in an Age of Rage,” I discuss how the Biden-Harris Administration has proven to be the most anti-free speech administration since John Adams.

That includes a massive censorship system described by one federal judge as perfectly “Orwellian.” In the CNN interview, Harris displays many of the anti-free speech inclinations discussed earlier. She strongly suggests that X should be shut down if it does not yield to demands for speech regulation. What is most chilling is how censorship and closure are Harris’s default positions when faced with unfettered speech. She declares to CNN that such unregulated free speech “has to stop” and that there is a danger to the country when people are allowed to “directly speak[] to millions and millions of people without any level of oversight and regulation.” Harris discussed her view that then-President Trump’s Twitter account should be shut down because the public had to be protected from harmful viewpoints.

“And when you’re talking about Donald Trump, he has 65 million Twitter followers, he has proven himself to be willing to obstruct justice – just ask Bob Mueller. You can look at the manifesto from the shooter in El Paso to know that what Donald Trump says on Twitter impacts peoples’ perceptions about what they should and should not do.” Harris demanded that Trump’s account “should be taken down” and that there be uniformity in the censorship of American citizens: “And the bottom line is that you can’t say that you have one rule for Facebook and you have a different rule for Twitter. The same rule has to apply, which is that there has to be a responsibility that is placed on these social media sites to understand their power… They are speaking to millions of people without any level of oversight or regulation. And that has to stop.”

In other words, free speech should be set to the lowest common denominator of speech regulation to protect citizens from dangerous viewpoints. Harris’s views have been echoed by many Democratic leaders, including Hillary Clinton who (after Musk purchased Twitter) called upon European censors to force him to censor American citizens under the infamous Digital Services Act (DSA). Other Democratic leaders have praised Brazil for banning X after Musk balked at censoring conservatives at the demand of the socialist government. Brazil is where this anti-free speech movement is clearly heading and could prove a critical testing ground for national bans on sites which refuse to engage in comprehensive censorship. As Harris clearly states in the CNN interview, there cannot be “one rule for Facebook and you have a different rule for Twitter.” Rather, everyone must censor or face imminent government shutdowns.

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“‘gold fishing’ – an on-screen facial contortion where the lips and cheeks move, but nothing comes out of the mouth..”

“Harris is seen as the most suitable candidate to further the causes of America’s military industrial complex ..”

Fake News Now At Peak As Kamala Faces CNN “interview” (Jay)

Wherever you look, it feels like we are being bombarded now with an unprecedented level of fake news. One reason may well be how the installed governments by western elites – military industrial complex and banking – are getting very skittish indeed about a shake up of world order in November when the airhead Kamala Harris takes on Donald Trump in the presidential elections. This new trend of installing a useful idiot into power has been around for decades across Africa and Asia where the U.S. and before that the UK installed their own despots to serve their own needs, so we shouldn’t be so shocked by someone like Harris having the landscape prepared for her. To call Harris a ‘lightweight’ is understating her political verve. She has none of the conventional talents that politicians require like public speaking, or engaging with media, let alone having any ideas of her own which might make it one day to policy.

For most Americans the choice in November is between Harris, who is essentially Biden 2.0 or Trump. Not exactly a tough call many might say since RFK endorsed Trump who traditionally he has not been a fan of; it’s as though he’s saying to Americans, “anything but Kamala. Do the maths”. Media is of course playing a huge and certainly tawdry role in pushing her which is not generally noted by most Americans. For weeks she has ignored or avoided all serendipitous contact with journalists which surely must be orders from the elite who are controlling her. And there is good reason for this as the internet is awash with her talking gibberish. Or dancing. Talking mumbo jumbo won’t help her at the polls against Trump who revels at the microphone and is not afraid to go head to head with journalists and unscripted interviews, despite him whining about how unfair the set-up is.

What he is alluding to is that left-wing media in America like CNN fake the news and as we saw recently almost certainly gave Kamala a print out of the questions she was going to face with her recent CNN interview where she was joined by her running mate just in case she did something which broadcast journalists call ‘gold fishing’ – an on-screen facial contortion where the lips and cheeks move, but nothing comes out of the mouth. In Kamala’s case, gold fishing might not be as bad as actually speaking, as she has shown us that there is not much between the ears. She is not overburdened with what many academics have of knowing too much and not being able to communicate in short sound bites. Harris doesn’t really know anything at all except a few talking points from Biden’s days. Her own people will be happy with the staged interview as they can at least counter oped writers who claim she is so lame that she avoids all press. Thanks CNN. Great jaaaabbbb.

Harris is seen as the most suitable candidate to further the causes of America’s military industrial complex whose six main companies cannot slow production down, unless they make job layoffs. The insatiable hunger of this machine is responsible for the lion’s share of U.S. foreign policy and Biden gave his cronies their one hundred Christmas’s when he created the Ukraine war and more recently Gaza. In Gaza the false reporting from western media is as repulsive as the images of children who have lost their entire brains and whose heads look like theatrical floppy props, which has become the day to day norm now when Israel bombs schools. Does anyone in the west in either camp still believe this is a “war” against Hamas fighters?

With the recent invasion of West Bank and the rise of settlers stealing land there, surely the real story of Netanyahu’s campaign is there for all to see in plain light: ethnic cleansing on a grand scale to wipe Palestinians off the face of Israel. And still we read western journalists and op-ed writers parroting the line about ‘two state solutions’ and what the EU says, etc etc. By the time the chairs are arranged and the mineral water is put on the tables, there will not be a Palestinian left to even represent his or her own state. Everyone knows the two-state solution is a massive parody of diplo gibberish a bit like Kamala’s few media stints which are still good for a laugh today. And it’s an identical story in Ukraine. No western journalists can report on the true story of Ukrainian losses in Kursk and how the operation has blown up in Zelensky’s face. The omission of reporting key facts and data is just as bad as making up your stories, if not worse.

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“..he also established a “Covid hotline” where people could call and report anyone who wasn’t following the governor’s edicts..”

Harris-Walz: The Ticket Of COVID Tyranny (Rich)

Quarantine, lockdowns, social distancing – words I’m sure everyone reading never wants to hear again. Even several years removed, the pain inflicted by Covid-19 and subsequent policy reactions is still fresh in our collective consciousness. I wouldn’t blame anyone for wanting to forget the whole thing, and you wouldn’t be the only one. The authoritarians who violated your freedoms in the name of Covid safety would love for those years – and their mistakes – to be forgotten. As it happens, two of those authoritarians will be appearing together on ballots this November – Kamala Harris and Tim Walz. Kamala Harris is a familiar name to many Americans. Picked out by Biden to serve as vice president on the 2020 Democrat ticket, she has served the past three-and-a-half years as Biden’s second-in-command. Depending on the outcome of the presidential elections in November, she might even be getting a promotion.

But in her capacity as VP, she has overseen the Biden administration’s increasingly tyrannical edicts in the name of stopping Covid. In 2021, the Biden administration attempted to wield OSHA against the American people by requiring that any companies with over 100 employees require weekly testing or vaccination. Not only was the legal reasoning behind this mandate spurious, the actions being mandated had, at best, questionable efficacy in combating the “Omicron” Covid strain. Thankfully, the mandate was struck down in a 6-3 decision by the Supreme Court in 2022, but neither Biden nor anyone in his administration ever rescinded their support for the measure. Additionally, the Biden administration took steps to censor anyone skeptical of their Covid policies by putting pressure on private companies. As revealed by the “Twitter Files,” the Biden administration would request that Twitter either ban or artificially reduce the reach of certain accounts.

These included high-profile individuals, such as Robert Kennedy Jr. It was only after Elon Musk purchased Twitter that such government “requests” were disclosed to the public. Vice President Harris has done more than look on with passive approval at the Biden administration’s actions. She has been actively involved in vaccination drives, encouraging masking, and imploring Americans to social distance. At a 2021 vaccine drive in South Carolina, Harris stated: “So, the vaccines—let me say it again—are safe. They are safe. And they are free. And they are effective. And it is that simple.” And, on the subject of “herd immunity”: “If you are vaccinated, you are protected. If your community is vaccinated, Covid rates in your community will go down.”

Just a few months after these remarks, the Delta variant would crash through the United States, despite millions of Americans being vaccinated. The same would happen again in 2022, when the Omicron variant caused record-high numbers of Covid infections. Harris also supported vaccines for children aged 5-11, despite the fact that young children are among the least likely to suffer serious complications from Covid. Even the World Health Organization would later reverse their position on child vaccination because of the marginal-to-nonexistent benefits.

In contrast to Harris, Tim Walz is an unfamiliar name to many. In 2018, Walz was elected governor of Minnesota, reelected in 2022, and is currently running with Harris for vice president. During Covid, he supported the same masking, lockdown, and social distancing policies that most governors across the country did, however, Walz’s administration was willing to go farther in these measures than many other governors. After Walz issued a stay-at-home order to prevent the spread of Covid, he also established a “Covid hotline” where people could call and report anyone who wasn’t following the governor’s edicts. This caused no small amount of controversy within the state, but when Walz was asked about removing the hotline, he said, “We’re not going to take down a phone number that people can call to keep their families safe.”

Walz was perfectly willing to enforce his lockdown orders as well. Whenever a Lakeville restaurant tried to reopen for dine-in service, state attorney general Keith Ellison sought a restraining order to keep it closed. Gloating on the situation, Ellison said. “I’m gratified the court recognizes the severity of the pandemic and the need to take urgent action to stop the spread of Covid-19.” In June 2020, Walz issued a mask mandate, requiring anyone in an indoor space with non-family members to wear a mask. In the official announcement of this mandate, Walz said, “But as Minnesotans always do during tough times, we come together and we take care of one another. And right now there’s no better way to demonstrate our Minnesotan values than by wearing a mask.”

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“..The hearing is scheduled for Thursday..”

Trump To Fight Revamped J6 Charges (RT)

Former US President Donald Trump will enter a not guilty plea to criminal charges in a revised indictment accusing him of attempting to overturn the 2020 election results. The case is related to the January 6, 2021 attack on the US Capitol Building in Washington, DC by Trump supporters in the aftermath of his defeat. The Republican candidate in this year’s race for the White House said in a court filing on Tuesday that he would not be present at a formal reading of the charges against him. He also authorized his attorneys “to enter a plea of not guilty” on his behalf “to each and every count of the superseding indictment.” The hearing is scheduled for Thursday. The revised indictment includes the same four charges prosecutors brought against Trump last year and that he pleaded not guilty to in August 2023.

Trump was accused of conspiracy to defraud the US, conspiracy against the voting rights of citizens, and obstruction of congressional certification of the election. The new document is a stripped-down version of last year’s criminal case against Trump. Certain allegations were dropped and reframed after the US Supreme Court ruled that Trump has broad immunity from criminal prosecution over official actions taken during his term as president. Trump has repeatedly denied wrongdoing and denounced the case as an attempt to prevent him from returning to the White House. In a series of posts on his Truth Social platform late last month, he called it “a direct assault on democracy” and a “resurrection of a dead witch hunt.”

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“..it intends to “hold” the territory because it is crucial to Kiev’s “victory plan” to end the conflict.”

Zelensky Vows To ‘Hold’ Occupied Russian Territory (RT)

Ukraine intends to occupy part of Russia’s Kursk Region indefinitely, Vladimir Zelensky has said. Officials in Kiev earlier signaled that they plan to use this as a bargaining chip in potential negotiations with Moscow.In an interview with NBC News released on Tuesday, the Ukrainian leader was asked what he plans to do with the internationally recognized Russian territory Kiev has captured as a result of a large-scale cross-border incursion that began last month.While Zelensky stressed that Ukraine “does not need [Russian] land” and “[does not] want to bring our Ukrainian way of life there,” it intends to “hold” the territory because it is crucial to Kiev’s “victory plan” to end the conflict. “For now, we need it,” he said.

He declined to say whether Ukraine plans to seize more Russian land. “With all respect, I can’t speak about it,” Zelensky said, citing the same considerations that forced Kiev to keep preparations for the Kursk offensive secret.Ukraine launched a large-scale attack on Kursk Region on August 6, reportedly committing some of its best brigades equipped with Western-supplied armor. While it made some initial gains, Moscow says the advance has been halted. The Russian Defense Ministry has estimated Kiev’s losses in the Kursk offensive at more than 9,300 troops and 700 armored vehicles.

Mikhail Podoliak, a senior aide to Zelensky, has said that the purpose of the attack was to secure a stronger position during potential peace talks with Moscow and to instill fear in the Russian population. Russian President Vladimir Putin has denounced the incursion as a provocation, accusing Ukraine of indiscriminately targeting civilians and pledging that Moscow will eventually “deal with the Ukrainian bandits” who entered Kursk Region. He signaled that Russia has no plans to engage in talks until the incursion is completely defeated, adding, however, that Moscow does not reject negotiations in principle.

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“..such a blanket punishment of countless faithful men and women does not promote unity, nor does it promote peace.”

Ukraine ‘Weaponizing’ Religion – Church of Jerusalem (RT)

The Greek Orthodox Church of Jerusalem, one of the oldest Christian churches in the world, has called on the Ukrainian government to repeal a law which exposes the Ukrainian Orthodox Church (UOC) to a likely ban. Kiev has outlawed religious organizations that it suspects of having ties with Russia. The legislation, which Ukrainian leader Vladimir Zelensky signed into law last month, is designed to shut down the UOC, the largest Christian denomination in the country. The UOC was previously targeted in a massive crackdown by the state, as officials told priests and the faithful that they should switch to the Kiev-supported rival Orthodox Church of Ukraine (OCU). In a statement on Tuesday, the Patriarchate of Jerusalem denounced Kiev’s move, insisting that “such a blanket punishment of countless faithful men and women does not promote unity, nor does it promote peace.”

“There is no justification to weaponize religious belief practice and we all must allow those who wish to pray to do so in a manner that accords with their conscience,” the statement stressed.Jerusalem said it sympathized with victims of the Ukraine conflict, “but out of this pain must not emerge a new schism among the faithful or the criminalization of innocent people because of their religious practice.” “The Patriarchate of Jerusalem recognizes the challenges and deep divisions that this conflict represents, and is committed to the spiritual mission of dialogue and reconciliation through fraternal discussions,” it added. The UOC has historic and spiritual ties to the Russian Orthodox Church (ROC), but is self-governed. The OCU was created in late 2018 as part of the failed reelection campaign by then-Ukrainian President Pyotr Poroshenko.

The move caused a major schism in the Orthodox Christian world, as the new organization was recognized by the Patriarchate of Constantinople in Türkiye. It revoked a decision made in the 17th century to acknowledge the ROC’s spiritual leadership in the lands that are now independent Ukraine. The Moscow Patriarchate broke ties with Constantinople in retaliation. The Patriarchate of Jerusalem has been working to heal the rift. The Ukrainian law was previously criticized by the Catholic Church. Pope Francis said he was concerned for the state of religious freedoms in the country, and urged Kiev to “let those who want to pray be allowed to pray in what they consider their Church.”

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BlackRock.

Rothschild Helped Ukraine Clinch Debt Restructuring – Reuters (RT)

Ukraine reached its recent agreement with bondholders on a debt restructuring as a result of efforts by Rothschild & Co, Reuters reported on Tuesday, citing sources involved in the talks. Kiev appointed Rothschild as an advisor to its Finance Ministry in 2017. Kiev announced last week that it had reached an agreement with a group of foreign investors to restructure its $20 billion debt. Bondholders – including US financial giants BlackRock and Pimco, as well as French asset manager Amundi – granted Ukraine a two-year debt freeze in February 2022 when the conflict with Russia broke out. The bondholders’ committee, which represents the holders of 25% of the bonds, has agreed to accept losses of 37%, or $8.7 billion, on the nominal value of their debt.

The International Monetary Fund (IMF) has reportedly confirmed that the deal was compatible with the parameters of its $122 billion aid package to Kiev. Both the IMF and the country’s creditors, which include the US and the Paris Club, have signed off on it, according to a statement with the terms of the accord published on the London Stock Exchange. The restructuring of the massive debt will help Kiev save $11.4 billion over the next three years. This is crucial for both its war effort and its IMF program, Reuters wrote, describing the debt restructuring as one of the fastest and largest in history, eclipsed in scale only by those undertaken by Argentina and Greece.

The report, however, highlighted that initial negotiations between the Ukrainian government and its lenders that started in June 2022 did not go to plan. Talks failed after a couple of weeks as the core committee of bondholders complained that the write-down Ukraine was demanding was “significantly in excess” of the 20% expected and risked doing “substantial damage” to relations.With less than two months until the August 2022 payment moratorium expired, Rothschild reportedly arranged face-to-face meetings for the sides at the firm’s offices in Paris. These reportedly involved representatives of some of the world’s top asset management firms and their legal and financial advisers, Kiev’s debt chief Yury Butsa, Ukraine’s long-term legal advisers White & Case and the Rothschild team.

According to Reuters, bondholders demanded that Ukraine restart coupon payments immediately, offer a path to a higher principal recovery and, importantly, “keep it simple.” IMF staff reportedly worked “at breakneck speed” to crunch the numbers. Kiev offered an alternative in the form of a simpler GDP-linked bond, with creditors also being offered the instant coupon payments that they had wanted, starting at a rate of 1.75% and eventually rising to 7.75%. The final result from the bondholder vote was more than 97% support, Reuters said.

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“..the conflict in Ukraine had revealed “the sorry state of European militaries and defense industries.”

‘Looming Threat’ From Russia Sparks ‘Major Rethink’ Of EU Defense Policy (RT)

The European Parliament is set to hold closed-door, high-level discussions on Wednesday in relation to a new report on the competitiveness of the EU defense industry, Politico has reported. The document, prepared by former Italian prime minister Mario Draghi, reportedly calls on the bloc to rethink its defense policy in light of the Ukraine conflict and the purported threat from Russia. Draghi prepared the 400-page report at the request of European Commission President Ursula von der Leyen, who said last week that the EU needs a “systemic overhaul” of its defense spending to increase production and reduce its dependence on the US. “The EU’s defense industrial base is facing structural challenges in terms of capacity, know-how and technological edge. As a result, the EU is not keeping pace with its global competitors,” a draft of the document reads, Politico reported on Monday.

The report also cites “the emergence of new types of hybrid threats” and “a possible shift of geographic focus” by the US as reasons for the EU to take “growing responsibility” for its own security. Draghi, who also previously served as the head of the European Central Bank, suggested earlier this year that his report will focus on the possible ways to fill the productivity gap, which has been mostly driven by a lack of investment in innovation. The EU spends roughly one-third of what the US does on defense in monetary terms, and the bloc’s arms companies depend 80% on international suppliers, largely from across the Atlantic, Draghi wrote. International think tank, the European Council on Foreign Relations (ECFR), noted last month that the conflict in Ukraine had revealed “the sorry state of European militaries and defense industries.”

Among the recommendations are the introduction of steps to incentivize domestic defense solutions over competitors, and a removal of red tape for weapons manufacturers to access EU funding. The United States, the founding member of NATO, has played a central role in the bloc’s defense, as most EU nations are NATO members. Since the outbreak of the Ukraine conflict in early 2022, the White House has been sending additional forces to the EU. Some nations, such as the Czech Republic and the Baltic states, have claimed that Russia would attack them if it won in Ukraine. Moscow has repeatedly dismissed the claims. President Vladimir Putin said in June that there is no threat of Russia attacking NATO countries as it has no “imperial ambitions,” and described such allegations as “nonsense.”

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Wonder why.

Starlink Agrees To Comply With Brazil’s Orders To Block X (ZH)

Elon Musk’s internet service, Starlink, has announced that it will comply with a Brazil Supreme Court order to shut down X while vowing to pursue “all legal avenues” to allow the recently banned Musk-owned social media platform to operate in Brazil. The move, announced by Starlink in a statement on Sept. 3, marks an apparent reversal after the country’s telecommunications regulator previously said that the satellite-based internet provider stated that it wouldn’t agree to block the social media platform. Starlink said it would abide by an order from Brazilian Supreme Court Justice Alexandre de Moraes requiring internet service providers and app stores to block X from their platforms. “Regardless of the illegal treatment of Starlink in freezing our assets, we are complying with the order to block access to X in Brazil,” Starlink’s statement said.

“We continue to pursue all legal avenues, as are others who agree that @alexandre’s recent orders violate the Brazilian constitution.” As Tom Ozimek reports at The Epoch Times, De Moraes froze Starlink’s accounts last week in order to pressure the company to cover fines imposed on X in Brazil, reasoning that both are part of the same Musk-controlled group. In response to the asset freeze, Starlink said on Aug. 29 that it believes de Moraes’s decision violated due process and was unconstitutional. “It was issued in secret and without affording Starlink any of the due process of law guaranteed by the Constitution of Brazil,” Starlink said in the statement. “We intend to address the matter legally.” Starlink’s announcement that it will comply with the order to shut down X comes a day after a spokesperson from Brazil’s telecommunications regulator told The Epoch Times that the company had “informally” expressed to a top agency executive its intention to buck the X ban.

The spokesperson said that unless Starlink complies, it will face sanctions, including possibly having its operating license in Brazil revoked. Arthur Coimbra, an Anatel board member, told The Associated Press that if Starlink refuses to abide by the order to block X, authorities could also eventually seize equipment from Starlink’s 23 ground stations in Brazil, where Starlink serves over a quarter million customers. Starlink’s announcement that it intends to comply with the X ban marks the latest chapter in a long-running dispute between Brazilian officials and Musk, who has refused to comply with court orders to block accounts accused by investigators of spreading hate and misinformation. Both Musk and X’s global government affairs team have denounced these orders as unlawful attempts at censorship.

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Helmer has a whole different take on Durov.

“The man who was hiding too much..”

Pavel Durov – Freedom To Play Fool, Stock Speculator, Fraudster (Helmer)

Pavel Durov aka Paul du Rove (“vagabond” in French) doesn’t put his money where his mouth is. This is because more than half the assets and almost half the revenues of Durov’s Telegram group of companies are digital units which Telegram itself programmes, stores, trades, values, and revalues, so the potential for concealment, deception and fraud is unaccountably large. This is the reason Durov has failed to secure the US regulator’s permission to sell shares in his $30 billion valuation of Telegram in a US initial public offering (IPO). In short, the freedom and privacy Durov claims his Telegram social media platform represents is not at all what the financial reports reveal of his money-making. The first fraud flag was waved by the US Securities and Exchange Commission (SEC) in October 2019 after more than a year of Durov’s money-raising through digital tokens he called Grams which he offered to sell for $1.5 billion.

At the time, cornerstone investors in Durov included the Russian oligarch Roman Abramovich and other oligarchs. Durov — announced the SEC — “seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public… the defendants have failed to provide investors with information regarding Grams and Telegram’s business operations, financial condition, risk factors, and management that the securities laws require.” In the five years since then, Durov claims to have sold another billion-dollar bond in 2021; $210 million in fresh securities in 2023; and $330 million in paper which Durov floated in March of this year. “The increased demand for our bonds shows that global financial institutions value Telegram’s growth in audience and monetization”, he said (telegrammed) at the time.

These investments weren’t exactly money for value, or vice versa. Durov has admitted he has been buying about a quarter of the debt issues himself. “Valuations are based on market inputs that are not observable,” reported a blockchain industry analyst. When the investors have turned out to be governments – like Mubadala, the Abu Dhabi emirate wealth fund — the real value Durov promised to exchange is likely to be as much political and military as financial. Similar terms of exchange are likely to have been agreed when, in addition to his Russian passport in the name of Durov, he took passports from the United Arab Emirates (name unknown), France (name Paul du Rove), and St Kitts and Nevis. Four months ago, Durov signed financial reports for his Telegram group prepared and audited by PriceWaterhouseCoopers (PWC). He thought the details would remain secret. Instead, following his arrest and indictment in France last week, they were leaked to the Financial Times in London.

The newspaper claims it “got its hands on the privately held company’s financials” but without explanation it is withholding them from full release. Durov’s signature is dated April 26, 2024. In public defence of his countryman, Russian Foreign Minister Sergei Lavrov said this week that Durov had been naïve about the “old system of globalization…P.V. Durov turned out to be too, too free, too slow or did not listen to Western advice about the so-called moderation of his brainchild.” Naivety is not what Durov signed his name to in Telegram’s financial reports. They reveal he is running a debt pyramid, replenishing the annual deficit between his expenditures and his income with new borrowings whose cost of servicing amounted in 2023 to 46% of his revenues. The leaked papers also disclose that his losses last year came to $259.3 million, although Durov managed to reduce that to $173.2 million by claiming offsetting digital assets had jumped in value. To support such valuation manipulations and his public claims of Telegram’s $30 billion market value, the small print of the auditor’s notes reveal that Durov uses his own digital money to boost the appearance of rising Telegram subscription numbers and demand for the company’s bonds — 15,000 subs and $64 million in bonds, to be precise.

As for protecting Telegram user privacy, Durov acknowledges that after subtracting $130 million in self-accounting “integrated wallet” value from his bottom-line revenue of $342.5 million, over the past year he sold “collectibles” for $17.8 million – almost 9%. This item is defined in the report as “usernames, virtual phone numbers…The related revenue is recognised at a point in time when the collectible is assigned to the user. The Group also enables the sale of collectibles between users and receives the fee for facilitating the sale.” According to the public indictment of the French prosecutors, fraud is one of the charges against Durov, along with money laundering, concealment by cryptology, and “refusal to communicate, at the request of the authorized authorities, the information or documents necessary for the realization and exploitation of interceptions authorized by law.”

According to Russian and international sources, the recent history of each one of these charges involves Durov in dealings with the Azerbaijan government, with the Kanak rebellion in the French colony of New Caledonia, and in undertakings he gave to agents of the French foreign intelligence agency, the Directorate-General for External Security (DGSE), when they visited him recently in Dubai. For a legal analysis of the Digital Services Act and regulations, the law applying to Telegram and to free speech in the social media in the European Union (EU), read this from Craig Murray. The analysis is made irrelevant by Murray’s acknowledgement that the indictment may be warranted if Durov “refused to remove or act over specific individual content specified by the French authorities, or unless he set up Telegram with the specific intent of facilitating organised crime”. Specific content was what the DGSE told Durov it wanted him to provide when they last met. That they met has been confirmed by the official leaks in Libération’s report of September 1. The newspaper headline was “The man who was hiding too much”. That Durov reneged on his promise to the DGSE is what the Paris prosecutor’s statement of August 28 indicates.

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“The people who once faced and conquered the great nations of Eurasia are now once again proving their greatness by boldly confronting Western arrogance.”

Mongolia Showed Its Greatness To The World (SCF)

Russian President Vladimir Putin landed in Mongolia on September 2, making his first trip to a Rome Statute’s country since the International Criminal Court (ICC) illegally issued an arrest warrant against him last year. As expected, some Western member states of the ICC demanded Mongolia to arrest Putin. The same demand was made by the Kiev neo-Nazi regime itself, but was completely ignored by the Mongolian authorities, who welcomed Putin with a red carpet in a great official ceremony. For the West and Kiev, Mongolia’s move was a “violation of international law.” For any serious analyst, the act was a brilliant demonstration of strength, sovereignty and insubordination. From a purely realistic point of view, the Mongolian attitude was completely correct, since, being geographically close to Russia, Mongolia needs to maintain a foreign policy of friendship and cooperation with Moscow.

Both nations have common interests and share the same geographical space – in addition to having a rich common history –, being true natural partners. In fact, Mongolia has shown the world its greatness by welcoming Putin. The country simply said “no” to illegitimate international pressure by taking the sovereign step of welcoming the Russian leader to its territory. The courage of the Mongolian authorities must be praised, as several countries have recently declined to take similar decisions, trembling in the face of international pressure. Even within the BRICS, the illegal arrest warrant against Putin is becoming a relevant issue. Recently, there have been several discussions in Brazil and South Africa about the “possibility” of arresting Putin in the event of a visit by the Russian president. In both countries, government authorities made it clear that the Russian president would be received calmly and safely, but the Judiciary acted irresponsibly, stating that arrest would be mandatory.

To avoid diplomatic discomfort and institutional crises in partner states, Putin has never confirmed any visit to these countries. Of course, a member country of the ICC can decide to arrest someone convicted by the Court. However, an ICC decision can only be valid against a citizen of a member country, otherwise there is an insurmountable legal impasse. The Russian Federation does not recognize the jurisdiction of the ICC, and there is no possibility that the country would accept that its citizens be arrested by order of this court. Therefore, if there were a coercive measure to arrest Putin or any other Russian citizen based on an ICC ruling, Moscow would certainly react by taking decisive measures – possibly even military ones. It is up to the ICC member country, upon receiving a foreign citizen “wanted” by the court, to decide whether the decision is valid or not.

If the wanted citizen is a native of a country that does not recognize the ICC, arresting him or her seems absolutely irrational and unnecessary. Furthermore, even in the event of recognition of the court, it must be emphasized that the final decision on whether or not to arrest someone on its territory will always be up to the state itself. There is no force or document in international law capable of obliging a state to act coercively against someone, since state sovereignty is the basic principle of all international relations. In other words, Mongolia, a small country between two giants (Russia and China) had more courage and wisdom than the great emerging powers like Brazil and South Africa. The decision to welcome Putin revealed that the ancient imperial and warrior spirit of the Mongolian people is still alive. The people who once faced and conquered the great nations of Eurasia are now once again proving their greatness by boldly confronting Western arrogance.

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” Leaving a Gestapo Police State in its Place..”

Truth is being Removed from the Western World (Paul Craig Roberts)

Not even one value of Western civilization remains. All values that composed an era of freedom have been repudiated. The example of the hour is Telegram owner Durov’s indictment in France. The basis of the French indictment is that Telegram’s privacy, the basis for its existence, provides a mechanism that criminals can use to commit crimes, such as posts of children in sexual acts. Privacy also provides secret means of communication that criminals and drug dealers use for their illegal businesses. The French government’s claim is that Telegram, by providing privacy, enables these crimes and therefore Durov is complicit in the crimes. Notice that it is Durov, not the child pornographers and drug dealers, who is being prosecuted. In other words, the argument of the French indictment is that as an owner of a communication mechanism that criminals use to facilitate their commitment of crimes, Durov himself has committed a crime.

We have been hearing illogical arguments of this kind for some time. Those who want to take away the ability of people to protect themselves from criminals and rapists by using their Second Amendment right to own firearms try to hold firearm manufacturers responsible for injuries and deaths caused by people using firearms. In other words, it is the manufacturer’s fault, because his product enabled the criminal to commit the crime. Sooner or later this argument will be applied to a large number of goods and services. For example, vehicles are used in bank robberies, in murders, and in human trafficking, and it is the car and vehicle manufacturers who enabled the criminals by producing the vehicle. One can see it applied to search engines and to GPS, because they enable criminals to locate their target.

All of this might sound silly to a reader, but it is no more silly than the French government’s indictment of Durov. Indeed, it is not silly at all. It is weaponized law in operation. In a way Durov’s indictment is his own fault. Like many Russians who have been brainwashed by Western propaganda, Durov thought France had more freedom than Russia and took French citizenship. He made a mistake. The French case against Durov also reflects the Gestapo police state argument, which over the years has been finding a welcome home in the Western world, that it is the responsibility of private individuals to be accomplices of police and that the failure to perform this role indicates criminal behavior. For the past several decades people in the Western world have been so poorly educated–indoctrinated against themselves instead of educated–that they find it plausible that people who refuse to be agents of a police state are criminals.

The Washington Post sees it this way. The only valid reason for social media’s existence is to spy for the government. One of the Post’s mal-educated reporters wrote that “for years internet moguls have flown above the law.” How is protecting free speech “flying above the law?” What law is above the First Amendment? The indoctrinated reporter thinks that laws contrary to the First Amendment of the US Constitution are valid, and that Elon Musk and Pavel Durov are violating the law by their commitment to free speech. The Washington’s Post’s presstitute says “The world’s internet regulators are no longer playing around.” He writes that the crackdowns against Telegram and X “come months after the United States passed a law that could lead to the banning of TikTok” and herald the end of the era of free speech on the Internet, a good thing in the Post’s view.

The Washington Post is delighted that free speech is to be regulated. In my opinion the entire rationale for the existence of the Washington Post is to control narratives for the CIA. As even insouciant Americans should know after enduring eight years of the system violating all ethics and all laws in its effort to deep-six Donald Trump, throughout the Western world law is nothing but a weapon to protect the lies fed to insouciant people as official narratives, the doubting of which is rapidly becoming a criminal action. In the name of official narratives, truth is being removed from the Western world. In my lifetime I have watched the transformation of the free Western world, a product of centuries of struggle, into a Gestapo Police State.

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Capybara

 

 

Lion

 

 

Porcupine
https://twitter.com/i/status/1831268038689132859

 

 

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Feb 142017
 
 February 14, 2017  Posted by at 10:09 am Finance Tagged with: , , , , , , , , , ,  2 Responses »


David Myers Theatre on 9th Street. Washington, DC July 1939

 

Top Trump Aide Flynn Resigns Over Russia Contacts (AFP)
Judge Grants Injunction Against Trump Travel Ban In Virginia (AP)
Is Trump the New Boris Yeltsin? (Max Keiser)
Bond Traders Fear Yellen Is Planning A ‘St. Valentine’s Day Massacre’ (MW)
Yellen Outlook ‘Irrelevant’ Because Trump Will Reshape Fed (CNBC)
The Fed Is Bad For America – But Getting Rid Of It Isn’t The Answer (DDMB)
Made For Each Other (Jim Kunstler)
Democracies Must Reclaim Power Over The Production Of Money (Pettifor)
China Factory Prices Surge Most Since 2011, Boosting Reflation (BBG)
Putin’s Central Banker Is on a Tear (BBG)
The Euro May Already Be Lost (ETT)
Greece To Exceed Its Primary Surplus Target In 2018 (R.)
Greece Lines Up Rothschild For Debt Advisory Role As Bankruptcy Looms (IW)
To Those Who Kept Me Alive All These Years: Thank You (Chelsea Manning)
Lesbos Doctors Accuse NGOs Of Failing To Care For Refugees (K.)

 

 

I still don’t fully get it. Was Flynn set up? Hard to believe he didn’t know his calls would be recorded and transcribed. He ran US -military- intelligence for a number of years, for pete’s sake. How could he not have known?

Top Trump Aide Flynn Resigns Over Russia Contacts (AFP)

Donald Trump’s national security advisor Michael Flynn resigned amid controversy over his contacts with the Russian government, a stunning first departure from the new president’s inner circle less than a month after his inauguration. The White House said Trump had accepted Flynn’s resignation amid allegations the retired three star general discussed US sanctions strategy with Russia’s ambassador Sergey Kislyak before taking office. Flynn – who once headed US military intelligence – insisted he was honored to have served the American people in such a “distinguished” manner. But he admitted that he “inadvertently briefed” the now Vice President Mike Pence with “incomplete information” about his calls with Kislyak. Pence had publicly defended Flynn, saying he did not discuss sanctions, putting his own credibility into question.

“Regarding my phone calls with the Russian Ambassador. I have sincerely apologized to the President and the Vice President, and they have accepted my apology,” read Flynn’s letter, a copy of which was released by the White House. The White House said Trump has named retired lieutenant general Joseph Kellogg, who was serving as a director on the Joint Chiefs of Staff, to be interim national security advisor. Flynn’s resignation so early in an American administration is unprecedented, and comes after details of his calls with the Russian diplomat were made public – upping the pressure on Trump to take action. Several US media outlets in Monday reported that top Trump advisors were warned about Flynn’s contacts with the Russians early this year. Questions will now be raised about who knew about the calls and why Trump did not move earlier to replace Flynn.

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The ban is now all but dead. But they’ll throw out another one soon.

Judge Grants Injunction Against Trump Travel Ban In Virginia (AP)

A federal judge Monday granted a preliminary injunction barring the Trump administration from implementing its travel ban in Virginia, adding another judicial ruling to those already in place challenging the ban’s constitutionality. The ruling is significant from a legal standpoint because U.S. District Judge Leonie Brinkema found that an unconstitutional religious bias is at the heart of the travel ban, and therefore violates First Amendment prohibitions on favoring one religion over another. She said the evidence introduced so far indicates that Virginia’s challenge to the ban will succeed once it proceeds to trial. A federal appeals court in California has already upheld a national temporary restraining order stopping the government from implementing the ban, which is directed at seven Muslim-majority countries.

But the ruling by the 9th Circuit Court of Appeals was rooted more in due process grounds, said Virginia Attorney General Mark Herring, a Democrat who brought the lawsuit against Trump in Virginia. “Judge Brinkema’s ruling gets right to the heart of our First Amendment … claim,” Herring said in a conference call Monday night. In her 22-page ruling, Brinkema writes that Trump’s promises during the campaign to implement what came to be known as a “Muslim ban” provide evidence that the current executive order unconstitutionally targets Muslims. “The president himself acknowledged the conceptual link between a Muslim ban and the EO (executive order),” Brinkema wrote. She also cited news accounts that Trump adviser Rudy Giuliani said the executive order is an effort to find a legal way for Trump to be able to impose his Muslim ban. Herring said that “the overwhelming evidence shows that this ban was conceived in religious bigotry.”

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“The creeping tide of kleptocracy will be appeased at every juncture.”

Is Trump the New Boris Yeltsin? (Max Keiser)

The hope that Trump would take on Wall Street crooks is dead. It was a long shot to begin with but it’s now clear that his level of financial illiteracy and corruption, a hallmark of Obama’s Presidency, is on par, or perhaps even exceeds Obama’s. What we see shaping up in the first few weeks of Trump’s Presidency is his emergence as the new Boris Yeltsin, the puppet idiot installed by America’s neo-cons and Wall St. bankers after the Soviet Union collapsed to drown the country in debt and deceit. Yeltsin was a drunk clown who gave away the country to oligarchs, who turned the country into a kleptocracy – all happening under the laughing approval of President Bill Clinton. Today Trump fills the Yeltsin role in American politics. As Wall St. laughs, Trump begins the process of giving away (read: privatizing) America’s assets to be owned by our new ruling kleptocracy.

Inflation is coming…But not because wages go up, but because price gouging and monopoly pricing starts to dominate our everyday lives with no cheap substitutes coming from overseas due to an increasing global level of distrust and illiquidity among trading partners. Leveraged buyouts fueled by bailouts and free money from the central bankers will continue to kill competition in America. Media, energy, pharmaceutical, finance and agriculture will all be controlled by impregnable monopolies (and Warren Buffett). It’s a pitiful sham and a godawful shame – a situation where Trump’s supporters will, in the not too distant future, turn on him after they’ve had their illusions shattered – but will it be too late? The creeping tide of kleptocracy will be appeased at every juncture. The vanishing middle class will cling to their guns and bibles – hoping for a miracle. They simply will not be able to believe that they could have been so wrong. The triumph of the will.

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The always colorful language of Albert Edwards.

Bond Traders Fear Yellen Is Planning A ‘St. Valentine’s Day Massacre’ (MW)

Is Federal Reserve Chairwoman Janet Yellen capable of conducting a bond-market bloodbath? That’s what some on Wall Street are wondering. Albert Edwards, market strategist at Société Générale and noted permabear, expects Yellen, who is set to deliver semiannual testimony to the Senate Banking Committee on Tuesday, will trigger a steep bond selloff by talking up the possibility that the central bank will raise interest rates in March. In a note, he refers to the possibility as “The St. Valentine’s Day Massacre,” a homage to the 1929 gangland murder of seven men in a garage in the Lincoln Park neighborhood on Chicago’s North Side. The killings were allegedly planned by famed mobster Al Capone, who was trying to wrest power away from Chicago’s Irish gangsters.

Edwards isn’t the only one who expects Yellen to remind investors that the central bank could raise interest rates at its next meeting for what would be the third time in a decade. “The market is bracing for the possibility that Yellen will talk up the chances of a rate increase in March,” said Guy LeBas, chief fixed income strategist at Janney. Treasury yields, which move inversely to prices, are on track to rise for the third straight day, a selloff that has largely been driven by these concerns, LeBas said. The yield on the 10-year Treasury note rose 3.6 basis points to 2.447%. But a March hike is still viewed as far from likely. Although the central bank back projected back in December that it would raise interest rates three times in 2017, investors have remained skeptical—probably because they’ve been burned by the Fed before.

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If Brainard leaves too, that makes five seats to fill with Yellen gone early next year.

Yellen Outlook ‘Irrelevant’ Because Trump Will Reshape Fed (CNBC)

With at least three vacancies expected on the Federal Reserve’s Board of Governors this year, the central bank may not be exempt from a Trump-led shakeup, strategist Mark Grant told CNBC on Monday. “The Fed of today is not going to be the Fed of tomorrow,” the chief strategist at Hilltop Securities told “Squawk Box.” Grant, who accurately predicted the Brexit vote and Donald Trump’s victory, said the president and Treasury Secretary nominee Steven Mnuchin will take advantage of filling key vacancies on the Fed board to further their agenda. Grant spoke a day ahead of Fed Chair Janet’s Yellen’s semiannual monetary report to the Senate. The Fed has said it expect to raise interest rates three times this year.

“I think what the Fed says at this point is, for all practical purposes, irrelevant, because Mr. Trump is going to be able to appoint three members of the Fed,” Grant said. “I think they’re going to be business people and the days of an academic, economist Fed are going to be over.” Removing academics from the Fed’s board remains a point of contention, but Grant said the Trump administration is likely to do so with the economic landscape and policy goals in mind. “I also believe that Trump and company, as I call them, know as they put in the infrastructure or the military expansion that there’s going to be a balance to the balance sheet, and … that the new people on the Fed are going to keep interest rates low,” Grant said. “So all this talk of a three interest rate or four interest rate hike, in my opinion, is baloney.”

On Friday, Fed Governor Daniel Tarullo announced plans to leave the board in April, creating a third vacancy. Danielle DiMartino Booth, author of “Fed Up: An Insider’s Take on Why the Federal Reserve Is Bad for America,” said that there is a high probability that board member Lael Brainard will also leave, creating yet another vacancy. She said Trump’s bold spending plan may require low interest rates (and, in turn, a more dovish Fed), but she wondered about whom the president would appoint to the board. “It’s really going to come down to whether or not he’s got the gumption to totally change the complexion of the Federal Reserve board, or if he steps back and says, ‘You know what, I’ve got to finance all this stuff, so I’m going to put more doves in.’ These are hard decisions,” she said.

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Fed insider Danielle DiMartino Booth’s new book Fed Up is here.

The Fed Is Bad For America – But Getting Rid Of It Isn’t The Answer (DDMB)

On September 20, 2005, Mark Olson did something ordinary that’s since proved to be extraordinary. Never heard of him? You’re not alone. Nevertheless, the banking expert had the gumption to lob a dissenting vote in his capacity as a governor on the Federal Reserve Board. He joined the estimable company of Edward “Ned” Gramlich, a fellow governor who dissented at the September 2002 Federal Open Market Committee meeting. Gramlich is best known for sounding an early warning on the subprime crisis, and being resolutely dismissed by Alan Greenspan. The two gentlemen represent central banking’s answer to the “Last of the Mohicans,” the sole two dissents that have been recorded by governors since 1995. And that’s a problem. At last check, ‘No” was not a four-letter word.

It’s no longer a secret that an abundance of anger is churning among many working men and women who feel they’ve been excluded by the current economic recovery and the longest span of job creation in postwar history. The funny thing about a sense of abandonment is that more often than not, anger follows. What too few Americans appreciate is how directly the inability to say “no” at the Fed has determined their station in life. But that’s just the case. The Fed directly impacts a slew of the most important decisions we make — the values we instill in our children, the things we buy and how they are financed and how we best prepare for what follows after a lifetime of laboring in the trenches.

Stop and think for a moment about the first time you discovered the miracle of compounding interest, that first bank statement that proved savings does pay. Can your children experience that same sensation? What about the roof over your head and the car you drive? Can you afford the payments or did you stretch to buy more than you could afford, out of sheer necessity? What about your mom and dad’s retirements? Do they say their prayers that the stock market will hang in there and that the safety of their bond holdings will protect them if that’s not the case? All of these dysfunctional dynamics lay at the feet of an academic-led Fed being hellbent on launching unconventional monetary policy with the false prerequisite that interest rates had to be zero before quantitative easing (QE) could be deployed.

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“The Republican Party is Norma Desmond’s house in Sunset Boulevard, starring Donald Trump as Max the Butler, working extra-hard to keep the illusions of yesteryear going.”

Made For Each Other (Jim Kunstler)

Don’t be fooled by the idiotic exertions of the Red team and the Blue team. They’re just playing a game of “Capture the Flag” on the deck of the Titanic. The ship is the techno-industrial economy. It’s going down because it has taken on too much water (debt), and the bilge pump (the oil industry) is losing its mojo. Neither faction understands what is happening, though they each have an elaborate delusional narrative to spin in the absence of any credible plan for adapting the life of our nation to the precipitating realities. The Blues and Reds are mirrors of each other’s illusions, and rage follows when illusions die, so watch out. Both factions are ready to blow up the country before they come to terms with what is coming down.

What’s coming down is the fruit of the gross mismanagement of our society since it became clear in the 1970s that we couldn’t keep living the way we do indefinitely — that is, in a 24/7 blue-light-special demolition derby. It’s amazing what you can accomplish with accounting fraud, but in the end it is an affront to reality, and reality has a way of dealing with punks like us. Reality has a magic trick of its own: it can make the mirage of false prosperity evaporate. That’s exactly what’s going to happen and it will happen because finance is the least grounded, most abstract, of the many systems we depend on. It runs on the sheer faith that parties can trust each other to meet obligations. When that conceit crumbles, and banks can’t trust other banks, credit relations seize up, money vanishes, and stuff stops working.

You can’t get any cash out of the ATM. The trucker with a load of avocados won’t make delivery to the supermarket because he knows he won’t be paid. The avocado grower will have to watch the rest of his crop rot. The supermarket shelves empty out. And you won’t have any guacamole. There are too many fault lines in the mighty edifice of our accounting fraud for the global banking system to keep limping along, to keep pretending it can meet its obligations. These fault lines run through the bond markets, the stock markets, the banks themselves at all levels, the government offices that pretend to regulate spending, the offices that affect to report economic data, the offices that neglect to regulate criminal misconduct, the corporate boards and C-suites, the insurance companies, the pension funds, the guarantors of mortgages, car loans, and college loans, and the ratings agencies.

The pervasive accounting fraud bleeds a criminal ethic into formerly legitimate enterprises like medicine and higher education, which become mere rackets, extracting maximum profits while skimping on delivery of the goods. All this is going to overwhelm Trump soon, and he will flounder trying to deal with a gargantuan mess. It will surely derail his wish to make America great again — a la 1962, with factories humming, and highways yet to build, and adventures in outer space, and a comforting sense of superiority over all the sad old battered empires abroad. I maintain it could get so bad so fast that Trump will be removed by a cadre of generals and intelligence officers who can’t stand to watch someone acting like Captain Queeg in the pilot house.

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Ann Pettifor’s new book is out too.

Democracies Must Reclaim Power Over The Production Of Money (Pettifor)

Today, the international monetary system is run by the equivalent of Goethe’s Sorcerer’s Apprentice. In the absence of the equivalent of the Sorcerer – regulatory democracy – financial risk-takers and fraudsters have, since 1971, periodically crashed the global economy and trashed the lives of millions of people. And let’s be clear: there is no such thing as effective global regulation. Ask the Bitcoiners – that is why they operate in the ‘dark web’. The question is this: who should control our socially constructed, publicly-backed financial institutions and relationships? Private, unaccountable, rent-seeking authority? Or public, democratic, regulatory authority? Policy and regulation requires boundaries. Pensions policy, criminal justice policies, taxation policies, policies for the protection of intellectual property – all require boundaries.

Finance capital abhors boundaries. Like the Sorcerer’s Apprentice, global financiers want to be free to use the magic of money creation to flood the global economy with ‘easy’ (if dear) money, and just as frequently to starve economies of any affordable finance. And they want to have ‘the freedom’ to do that in the absence of the Sorcerer – regulatory democracy. If we want to strengthen democracy, then we must subordinate bankers to their role as servants of the economy. Capital control over both inflows and outflows, is, and will always be a vital tool for doing so. In other words, if we really want to ‘take back control’ we will have to bring offshore capital back onshore. That is the only way to restore order to the domestic economy, but also to the global economy.

Second, monetary relationships must be carefully managed – by public, not private authority. Loans must primarily be deployed for productive employment and income-generating activity. Speculation leads to capital gains that can rise exponentially. But speculation can also lead to catastrophic losses. Loans for rent-seeking and speculation, gambling or betting, must be made inadmissible. Third, money lent must not be burdened by high, unpayable real rates of interest. Rates of interest for loans across the spectrum of lending – short- and long-term, in real terms, safe and risky – must, again, be managed by public, not private authority if they are to be sustainable and repayable, and if debt is not going to lead to systemic failure. Keynes explained how that could be done with his Liquidity Preference Theory, still profoundly relevant for policy-makers, & largely ignored by the economics profession.

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Remember: there can be no inflation without consumer spending going up. Prices may rise for other reasons, but that’s not the same.

China Factory Prices Surge Most Since 2011, Boosting Reflation (BBG)

China’s producer prices increased the most since 2011, with the world’s biggest exporter further lifting the outlook for global inflation. Producer price index rose 6.9% in January from a year earlier, compared with a median estimate of 6.5% in a Bloomberg survey and a 5.5% December gain. Consumer-price index climbed 2.5%, boosted by the week-long Lunar New Year holiday beginning in January this year, versus a 2.4% rise forecast by analysts. Producer prices for mining products surged 31% year-on-year while those for raw materials climbed 12.9%, the National Bureau of Statistics said Tuesday. China is again exporting inflation as factories increase prices after emerging from years of deflation. That fresh strength may moderate in coming months as year-ago comparisons gradually rise and Donald Trump’s policies add uncertainties to the global demand outlook.

Continued pressure for raw materials is forcing companies to increase prices, according to Tao Dong at Credit Suisse in Hong Kong. “Without strong demand, producers have limited space for price hikes,” he said. “But I see a wide range of price increases because the cost push is so severe.” Both consumer and producer inflation will peak soon, Julian Evans-Pritchard, an economist at Capital Economics in Singapore, wrote in a report. “Tighter monetary policy, slowing income growth and cooling property prices should keep broader price pressure contained over the medium-term,” he said. “The latest inflation data add to the case for a continued moderate tightening in monetary policy,” Tom Orlik, chief Asia economist at Bloomberg Intelligence in Beijing, wrote in a report.

“The central bank is likely to continue on that path in the months ahead, as policy makers lean against excess leverage, yuan weakness and capital outflows, and nascent inflationary pressure.” “We haven’t seen significant pass-through effect from PPI to CPI inflation yet, suggesting that the strong rebound in PPI inflation is a reflection of proactive fiscal policies,” Zhou Hao, an economist at Commerzbank in Singapore, wrote in a report. With the Communist Party Congress later this year, “local governments are keen to deliver decent growth figures. Against this backdrop, the infrastructure investment pipeline will remain solid.”

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It’s almost 2 years ago that I wrote Russia’s Central Bank Governor Is Way Smarter Than Ours. This is a pretty crazy story. Russian banking appears to take place in some kind of black hole, complete with event horizons.

Putin’s Central Banker Is on a Tear (BBG)

In Russia, Peresvet Bank had an edge no other big private financial institution could match. Its largest shareholder was the powerful Russian Orthodox Church. In a 2015 pitch to investors, Peresvet said the backing of the church and the bank s other big owner, Russia’s Chamber of Commerce and Industry, gave it a quasi-sovereign status. For more than two decades, big state companies stashed their cash with the bank, whose ponderous full name Joint Stock Commercial Bank for Charity and Spiritual Development of Fatherland suggested its grand standing. Even so, it took less than a month last fall for the bank, one of Russia’s 50 largest, to come undone and be taken over by the central bank. Peresvet was just the latest casualty in a financial purge presided over by Central Bank chief Elvira Nabiullina, a bookish economist who’s a favorite of Vladimir Putin.

The regulator closed almost 100 banks in 2016, and in a cleanup with few precedents, Nabiullina has shut almost 300 over the past three years. This may be only the beginning. There are about 600 banks left across the world’s largest country, but Fitch Ratings analyst Alexander Danilov, adjusting for population, calculates that as an emerging market Russia would be fine with about 1 in 10 of those. A warning from Fitch signaled Peresvet’s fall: Almost a tenth of its loans were to companies seemingly without real businesses. Then Russian media reported that the chief executive officer, Alexander Shvets, had disappeared. The bank issued denials and publicized positive comments from other analysts. But within days, as depositors clamored for their cash, the bank said it was “temporarily” limiting withdrawals. The regulator took control of the lender four days later.

As of late January the central bank was still trying to determine the scale of Peresvet’s financial woes. Nabiullina, 53, has emerged as one of Putin’s most influential economic advisers following a low-key government career that began in the 1990s, before the Russian leader’s rise to power. Soft-spoken and unassuming, she runs what in Russia is called a “megaregulator.” When it comes to the economics behind Putin’s overarching goal of restoring Russia’s place in the world, there’s no one more influential. As central bank governor, she’s in charge of a banking system whose weak links are an economic burden, driving up the cost of financing so badly needed in the face of stagnant growth. She’s also the chief guardian of Russia’s foreign currency reserves. Those holdings are more than just a tool of monetary policy; according to several senior officials, Putin views them as a vital safeguard of the country’s sovereignty. [..]

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The eurozone’s core problem: as soon as harder economic times come, the poorer countries are hit hardest. Solution: a transfer union like the US. But that will never be accepted in the EU, because it means giving up more sovereignty.

From Finland’s EuroThinkTank, h/t Mish

The Euro May Already Be Lost (ETT)

The 1st of January 2017 marked the 18th anniversary of the European common currency, the euro. Despite its success from 1999 to 2007, after 2008 the euro has become a burden for many of its members. For example, living standards in Italy and Greece are below the levels when they joined the euro. Finland is the only Nordic country using the euro and it is also the only Nordic country which has not yet recovered from the financial crash of 2008. There have been many proposals on how to fix the euro and the EMU, but they are politically unpopular and unrealistic. In this blog-entry, we will argue that the euro will almost surely fail; we just do not know the exact timing of its demise. The problem of the euro can be visualized in the development of the GDP per capita.

Germany has been successful in the Eurozone, while Greece and Italy have not. France is not doing well either. The jury is still out for Finland. The different growth paths are a symptom of a general problem that has haunted currency unions for centuries. Competitiveness and productivity develop at a different pace in different countries. Over time, this leads to large competitiveness differences among the members of a currency union. These differences do not usually pose a problem during economic booms because strengthening aggregate demand supports ailing fields of production. However, when a currency union faces an economic downturn or a crisis, falling aggregate demand hits less competitive industries and countries hard and the financing costs of less competitive countries jump. This is an asymmetric shock.

The detrimental effects of asymmetric shocks can be mitigated by transferring funds from prosperous to declining member states. When the dollar union of the US threatened to fall apart during the Great Depression, the federal government enacted federal income transfers from prosperous states to aid ailing ones. The federal budget also increased rapidly and, in practice, income transfers became permanent. The no bailout policy of crisis-hit states had already been enacted earlier. According to the ECB, competitiveness of the German economy has improved by around 19.3%, Greece’s competitiveness has improved by around 6.5%, France’s around 3.9%, Finland’s around 1.7% and Italy’s around 0.9% since 1999. Thus, for survival in its present form and size, the Eurozone needs a similar income transfer system, that is, a full political union as in the US.

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Meaningless numbers.

Greece To Exceed Its Primary Surplus Target In 2018 (R.)

Greece will have a primary surplus in the budget of 3.7% of GDP next year, exceeding the target of 3.5% agreed with its euro zone creditors, the European Commission forecast on Monday. The size of next year’s Greek primary surplus, which is the budget balance before debt-servicing costs, is a bone of contention between euro zone governments and the IMF, which believes it will be only 1.5%. A further disagreement between the two lenders to Greece is what surplus Athens will be able to maintain in the years after 2018. The higher the surplus and the longer it is kept the less is the need for any further debt relief to Greece.

The IMF insists Greek debt, which the Commission forecast on Monday would fall to 177.2% of GDP this year from 179.7% in 2016 and then decline again to 170.6% in 2018, is unsustainably high and that Greece must get debt relief. Germany and several other euro zone countries say that, if Greece does all the agreed reforms, then debt relief will not be necessary. The Commission forecast that Greek investment would triple to 12% of GDP this year and rise further to 14.2% of GDP next year as the economy expands 2.7% in 2017 and 3.1% in 2018 after years of recession. It also forecast Greek unemployment would fall to 22% of the workforce this year from 23.4% last year and decline further to 20.3% in 2018.

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If all else fails, sell your soul.

Greece Lines Up Rothchild For Debt Advisory Role As Bankruptcy Looms (IW)

Greece is reportedly planning to hire Rothschild as its debt adviser, replacing current adviser Lazard in the role, as it attempts to end a long-running stand off with creditors. According to the Financial Times, government officials in Greece hope to finalise the appointment before a gathering of euro-area finance ministers on 20 February. Unless Greece receives fresh funds it will not be able to make €7bn of debt payments due this July, including €2.1bn to private sector creditors. In the role, Rothschild will reportedly advise the country on negotiations with creditors, potential inclusion in the European Central Bank’s bond-buying programme, and the sale of Greek government bonds.

The deal would replace the Greek government’s current deal with Lazard, which guided the country through its original bailout in 2012. According to the FT, out of Greece’s €323bn of outstanding government debt just €36bn is owned by private investors who hold Greek bonds, while the rest is owned by sector creditors. Last week, yields on two-year Greek bonds rose to their highest level since June last year after the IMF and the EU failed to reach an agreement on how to lend the €7bn required by the country to avoid bankruptcy. The IMF refused to sign up to the aid programme unless the EU grants further debt relief to Greece. However, the head of the eurozone’s €500bn rescue fund has rejected this demand.

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Power to you, Chelsea.

To Those Who Kept Me Alive All These Years: Thank You (Chelsea Manning)

To those who have kept me alive for the past 6 years: minutes after President Obama announced the commutation of my sentence, the prison quickly moved me out of general population and into the restrictive housing unit where I am now held. I know that we are now physically separated, but we will never be apart and we are not alone. Recently, one of you asked me “Will you remember me?” I will remember you. How could I possibly forget? You taught me lessons I would have never learned otherwise. When I was afraid, you taught me how to keep going. When I was lost, you showed me the way. When I was numb, you taught me how to feel. When I was angry, you taught me how to chill out. When I was hateful, you taught me how to be compassionate. When I was distant, you taught me how to be close. When I was selfish, you taught me how to share.

Sometimes, it took me a while to learn many things. Other times, I would forget, and you would remind me. We were friends in a way few will ever understand. There was no room to be superficial. Instead, we bared it all. We could hide from our families and from the world outside, but we could never hide from each other. We argued, we bickered and we fought with each other. Sometimes, over absolutely nothing. But, we were always a family. We were always united. When the prison tried to break one of us, we all stood up. We looked out for each other. When they tried to divide us, and systematically discriminated against us, we embraced our diversity and pushed back. But, I also learned from all of you when to pick my battles. I grew up and grew connected because of the community you provided.

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I’ll get back to this soon. It’s good to see others address this issue too.

Lesbos Doctors Accuse NGOs Of Failing To Care For Refugees (K.)

State hospital doctors on the eastern Aegean island of Lesvos, which has been hard particularly hit by the refugee crisis, have complained that nongovernmental organizations receiving European Union funding to help migrants are not doing enough, resulting in them being forced to bear an excessive burden. In a statement released on Monday, the island’s union of state hospital doctors said the two refugee camps at Moria and Kara Tepe do not have any pediatricians, meaning that all sick children from the camps must be treated at local hospitals, which are seriously understaffed. Noting that the NGOs “get paid handsomely” by the EU to help refugees, the union claimed they had “totally failed to provide humane conditions for the refugees.” Several human rights groups have complained about conditions at Greek refugee camps, particularly Moria and Elliniko, in southern Athens.

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Jun 212016
 


NPC District National Bank, Dupont branch, Washington, DC 1924

The Big Guns Are Out: Soros, Rothschild Warn Of Brexit Doom (ZH)
When Brexit Has Come And Gone, The Real Problems Will Remain (ZH)
IMF Calls On Japan To ‘Reload’ Abenomics (Nikkei)
India’s Rockstar Central Banker Defeated As Modi Revolution Stalls (AEP)
Yellen Makes ‘Uncertainty’ New Mantra (R.)
“Whatever It Takes” Wasn’t Enough (Noland)
The World’s Newest “Reserve” Currency Is Anything But (Balding)
China’s Developers Can’t Stop Overpaying for Property (WSJ)
China’s ‘Land Kings’ Return as Housing Prices Rise (WSJ)
Energy-Related Loan Losses Rising (B.)
California Power Grid Prepares For Heatwave, Power Outages (R.)
Australia Whistleblower Loses Job After Speaking Out On Refugee Camps (G.)

Vested interests at stake.

The Big Guns Are Out: Soros, Rothschild Warn Of Brexit Doom (ZH)

Just yesterday, we recounted the story of “Black Wednesday” when on September 16, 1992, the UK was forced out of the EU’s exchange-rate mechanism, or ERM, when the BOE tapped out and allowed the British pound to float freely, leading to 15% losses in the sterling. As we noted, this was George Soros’ infamous trade which “broke the Bank of England” and made the Hungarian richer by over $1.5 bilion. 24 years later Soros is back, and this time he is warning against the kind of devaluation that made him a billionaire and which he believes will be unleashed by Brexit, when in a Guardian Op-Ed he wrote that U.K. voters are “grossly underestimating” the true costs of a vote to leave the EU, saying that there would be an “immediate and dramatic impact on financial markets, investment, prices and jobs.”

[..] It is notable that Soros’ warning comes just days after that of Jacob Rothschild himself who said in another Op-Ed, this time for The Times, that leaving the EU could lead to a “damaging and disorderly situation” in the UK as he urged Britons to vote ‘remain’. Just like Soros, Lord Rothschild, suddenly exhibiting a rare strain of humanitarian concern, said readers should not “risk the wellbeing of our country”and European countries are “better off together”. He said that “at present we enjoy being a permanent member of the UN security council and we are essential to the G8 and Commonwealth. But diplomacy, defence, the environment and our values of being a liberal democracy will all be at risk” adding that “I can see no good reason why we should accept our playing a diminished role on the world stage,” especially if his own personal fortune would be jeopardized.

Finally, completing the doom loop, was none other than Chancellor George Osborne who, according to the Telegraph, “refused to rule out suspending trading on the London stock market if Britons vote to leave the EU on Friday morning… The threat from the Chancellor, made in an LBC radio interview on Monday evening, after the market had closed could force shares down in London as early as Tuesday morning.”

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Everyone’s broke.

When Brexit Has Come And Gone, The Real Problems Will Remain (ZH)

In a few days, Brexit will come and go, and just a few days later it will be forgotten, as either outcome will be far less dramatic than has been widely predicted by the same fearmongering economist pundits who have been wrong about everything else for the past 8 years. Ironically, the better outcome for the market is precisely a Brexit as the panic selloff will prompt central banks around the globe to boost enough monetary stimulus to send risk assets to new all time highs. What will remain, however, are the real problems. Here is SocGen with a useful reminder of just what those are, and why the market may have already forgotten that just one week ago the Fed threw in the towel when addressing precisely these problems. From SocGen’s Andrew Lapthone:

“Global equity markets continued to struggle last week, with the MSCI World index off 1.8% pushing the index back into red for the year. Big losses were seen in Japan with the Topix 500 down 6% and the volatile Mothers index crashing 18.5% over the week as the yen continued to strengthen. According to the BOE measure, the trade-weighted yen is now up more than 20% over the past year and back to where it stood three years ago. In the battle for the weakest currency, Japan looks to have thrown in the towel.

Whatever the outcome of the Brexit vote this week investors will still be facing the prospect of negative rates and negative yields on a huge range of bonds, massive corporate leverage with worryingly rising delinquencies and of course expensive equity markets and falling profits. To that extent these political events are a distraction from the main event, weak global economic growth and perverse asset markets. So whilst the market preference for the status quo might be celebrated in the short-term, actually when the fog clears all of the problems will still be there.”

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Forcing companies to raise wages?!

IMF Calls On Japan To ‘Reload’ Abenomics (Nikkei)

Japan needs bolder income policies such as penalizing profitable companies that do not increase wages, the IMF said on Monday after concluding its annual economic assessment of the country. Despite initial success, progress under Abenomics, Prime Minister Shinzo Abe’s trademark economic policies, has stalled in recent months. The inflation rate has dropped to negative territory again, while economic growth has remained anemic.The IMF now expects Japan’s economy to grow by about 0.5% in 2016, before slowing to 0.3% in 2017, with potential growth sliding to close to zero by 2030, due to the declining demographic. “Abenomics needs to be reloaded,” the IMF said in its report and argued that income policies combined with labor market reforms should “move to the forefront” of the country’s fight against lagging growth.

“The government can introduce a ‘comply or explain’ mechanism for profitable companies to ensure that they raise base wages by at least 3% and back this up by stronger tax incentives or – as a last resort – penalties,” the IMF wrote. Promoting intermediate contracts that balance job security and wage increases will “reinforce income policies,” it added. “Our perception is that much of the stasis of inflation [in Japan] comes from the legacy, the history of having negative inflation,” said David Lipton, first deputy managing director at the IMF, in a press conference in Tokyo. “Certainly firms have at this point the cash flow and resource at hand to provide some wage increases. There are wage increases evident in a wide range of companies across this economy, so our thought is to suggest that this be a broader practice and that it be more uniform.”

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“..Mr Rajan has been an acerbic critic of zero rates and quantitative easing by the western central banks…”

India’s Rockstar Central Banker Defeated As Modi Revolution Stalls (AEP)

India’s bid to become the ‘economic super-tiger’ of Asia is in serious doubt after an assault on the independence of the central bank and failure to deliver on promised reforms. The country has been the darling of the emerging market universe since the Hindu nationalist Narendra Modi swept into power in May 2014 promising a blitz of Thatcherite reform and a bonfire of the diktats, but key changes have been blocked in the legislature. The government has turned increasingly populist. Matters have come to a head with the de facto ouster of Raghuram Rajan, the superstar governor of the Reserve Bank of India (RBI), rebuked for keeping monetary policy too tight. It is part of a pattern of attacks on central banks by politicians across the world, and the latest sign that the glory days of the monetary overlords are waning.

Mr Rajan has been battling criticism for months but threw in the towel over the weekend, sending tremors through the Indian financial markets and provoking a flurry of warnings from global investors. “He has decided not to wait until he is refused a second term,” said Lord Desai from the London School of Economics. “This is ‘Rexit’ – India’s equivalent of ‘Brexit. It looks very bad for India and will not go down well in financial markets. He was defeated by the crony capitalists up against him,” he said. The government has dampened the impact with by relaxing barriers to foreign investment in the country, but it may have underestimated the totemic status of Mr Rajan outside India. He is seen by funds as the guarantor of good practice and market integrity. Mr Rajan is a former chief economist for the IMF, famed for warning that the US subprime debt bubble was out of control long before the Lehman crisis blew up in 2008.

[..] Mr Rajan has been an acerbic critic of zero rates and quantitative easing by the western central banks. He blames them for flooding the international system with excess liquidity that emerging markets could not easily control. This fueled dangerous boom-bust asset cycles. While QE might have ‘worked’ for the US, UK, and Europe – the jury is out even for them – Mr Rajan argues that the policy is a “Pareto sub-optimal” for the world as a whole, and ultimately increases the danger of a deflation-trap in the future. The Fed and the leading central banks of the West have never really answered his critique.

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I was going to say the Empress has no clothes, but I don’t want that image lingering on my retina.

Yellen Makes ‘Uncertainty’ New Mantra (R.)

The U.S. Federal Reserve’s dwindling confidence in its own outlook and resulting confusion among investors are creating a policy problem that may require chief Janet Yellen to lay out her own views more forcefully. The Fed chair’s next communications test comes on Tuesday and Wednesday during her semi-annual testimony to U.S. lawmakers, less than a week after the central bank kept interest rates unchanged near record lows and lowered its projections for hikes in 2017 and 2018. A self-described consensus builder, Yellen sees her job as reflecting the whole committee’s views rather than setting an agenda for others to follow.

“I think that’s a very laudable intent, but sometimes that produces a lack of clarity,” said former Fed staffer and current partner at Cornerstone Macro LLC Roberto Perli. “Sometimes there is a consensus for one reason and then next time there is a consensus for a different reason so the story shifts and people get confused.” In fact, Fed policymakers’ deepening uncertainty about their own projections has resulted in the central bank sending mixed messages – repeatedly ratcheting up rate hike expectations only to tone them down later.

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Important point: “Whatever it takes” was orchestrated specifically to expel any market doubt with regard to the viability and sustainability of European monetary integration.

“Whatever It Takes” Wasn’t Enough (Noland)

Back in 2012, Mario Draghi recognized how even the notion that a country might exit the euro could unleash market dynamics that would rather quickly place Europe’s markets and banking system in peril. “Whatever it takes” was orchestrated specifically to expel any market doubt with regard to the viability and sustainability of European monetary integration. On the back of a wall of liquidity and inflating securities markets, Draghi’s gambit held things together for a few years. That said, the ECB bet the ranch – and was compelled to ante up in response to market instability early this year. The outcome of the game is very much in doubt. While Britain is not even a member of the euro, Brexit provides a test of ECB policymaking. Is Europe robust or fragile?

Has relative financial stability been nothing more than a brittle ECB-fabricated façade? Are the forces mounted against integration and cooperation too powerful to disregard? Is European integration – along with the euro currency – viable long-term? It’s an untimely test, with confidence in Europe’s banks already waning. It’s furthermore an untimely test because of faltering confidence in the ECB and contemporary global central banking more generally. Global market instability has again resurfaced and there will be no resolution next week. The FOMC has confounded Fed watchers with its abrupt pivot back to ultra-dovishness. There shouldn’t be much confusion. Global market fragility has reemerged, and the Fed’s rapid retreat has confirmed the seriousness of what’s unfolding.

Central banks have thrown everything at the problem, yet markets remain as vulnerable as ever. At least the world was not facing the downside of China’s historic Credit Bubble back in 2012. The Fed has never admitted that global concerns have been dictating U.S. monetary policy since 2012. It has now become clear, throwing the analysis of policymaking into disarray. The harsh reality is also increasingly apparent: global monetary management is dysfunctional and central bankers have become perplexed – without a backup plan. Such an uncertain backdrop is pro-currency market instability and pro-de-risking/deleveraging.

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Nobody has a reason to use the yuan.

The World’s Newest “Reserve” Currency Is Anything But (Balding)

Last week’s decision by MSCI not to include Chinese shares in its primary emerging-markets stock index has been viewed – widely and rightly – as a blow to China’s hopes of internationalizing its financial sector. There’s worse news, though: Even the progress China’s made thus far is in danger of going into reverse. MSCI’s choice is a sharp contrast to the one made by the IMF last December, when it promised to begin including the Chinese yuan in its basket of “special drawing rights.” The move essentially conferred global reserve status on the currency, despite the fact that China arguably didn’t meet the conditions for inclusion: It was debatable whether the yuan could be considered “freely usable,” and in any case, it was hardly used. At its peak in August 2015, the yuan accounted for 2.79% of global payments, compared to 44.8% for the U.S. dollar.

The idea was that compromising now would encourage leaders in China to fulfill their pledges to liberalize the yuan fully by 2020. In fact, since the IMF’s decision, the yuan has if anything grown less international, not more. Since March 2015, yuan deposits in the three largest offshore centers – Hong Kong, Taiwan and Singapore – have fallen 16%, to a total of 1.24 trillion yuan or about $188 billion. The currency is being used in even fewer international transactions than before: Its share of global payments stood at 1.82% in April 2016. The fact that only a quarter of those international payments included a partner other than China or Hong Kong means that only about 0.5% of all yuan transactions are truly international in scope. This places the currency somewhere between those of Scandinavian powerhouses Norway and Denmark.

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Absolutely completely madness. The casino keeps adding new slot machines and crap tables.

China’s Developers Can’t Stop Overpaying for Property (WSJ)

If the cost of flour is higher than the price of bread, what should a baker do? Chinese property developers are choosing to buy more flour. Prices for land, the main ingredient of the property world, have hit record highs in auctions this year in many Chinese cities. The average land price per square meter for the top 100 cities in the first five months of this year jumped nearly 50% from the same period last year, according to Wind Information. Some land prices are even higher than housing prices nearby.

State-owned developer Poly Real Estate, for instance, bought a piece of land in a Shanghai suburb for 5.5 billion yuan ($835.5 million) last month. This translates to roughly 44,000 yuan per square meter of buildable space. Houses in the region meanwhile go for around 40,000 yuan per square meter. After taking into account construction costs, taxes and other expenses, property prices would have to nearly double for the developer to make money. Prime land in the biggest cities always costs a lot, but increasingly the voracious buyers are showing up in less prime locations and smaller cities. In Suzhou, a city near Shanghai, with a population of 1.1 million, land sales in the first five months of this year have already exceeded the total of last year. And average prices have doubled.

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It’s the same they do with raw materials: “..After winning an auction, financial firms with access to cheap funding can apply for a loan with the land as collateral..”

China’s ‘Land Kings’ Return as Housing Prices Rise (WSJ)

The “land kings” are back. That had been a nickname for Chinese developers paying sky-high prices for land parcels during China’s property boom earlier this decade, which left so-called ghost cities of unsold housing across China. Now, with housing prices in China’s larger cities again rising rapidly, frothy bids for land parcels are back. On June 8, Logan Property Holdings agreed to pay 14.1 billion yuan ($2.14 billion) for a piece of land in Shenzhen’s Guangming district, the largest-ever price tag in the southern Chinese city. Logan says it didn’t overpay, calling the price “relatively favorable” in a hot market. Earlier in June, a joint venture between two firms, one of which is backed by state-owned Power Construction Corp. of China, outbid 17 rivals with an 8.3 billion yuan offer for a plot in Shenzhen’s Longhua district.

The soaring land prices show the challenges facing the government as it tries to prevent property bubbles. Moves to stimulate China’s slowing economy and to trim excess housing in smaller cities across the country—such as interest-rate cuts and eased mortgage rules—have fed into speculative demand for homes in top-tier cities that are now scrambling to cool prices. Average housing prices in 70 Chinese cities were about 5% higher in May than a year earlier, the fifth straight month of increases. In top-tier cities, prices were up 19% to 53%. But land prices are shooting up not just in Shenzhen, Shanghai and Beijing, but also in lower-profile cities such as Hangzhou, Hefei and Zhengzhou. Officials face a dilemma in trying to tame land prices: Land is commonly used as debt collateral; a sharp drop in valuation could trigger defaults and produce a wave of bad loans, hurting the economy. On the other hand, runaway land prices make it harder for ordinary Chinese to afford apartments.

[..] There is also concern that financial firms with little experience as builders are viewing land as an opportunity for arbitrage. After winning an auction, financial firms with access to cheap funding can apply for a loan with the land as collateral, and use that to extend a construction loan at a higher rate to a partner, which is typically a property developer.

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“Like an oil lease, you’re easily disposable..”

Energy-Related Loan Losses Rising (B.)

“Like an oil lease, you’re easily disposable,” the villainous J.R. Ewing quipped to his beauty queen wife in the 1970s television series Dallas. Readers of the latest edition of the Federal Reserve Bank of Dallas’s quarterly southwest economy publication might want to keep that quote in mind. News from the oil patch — the 11th Fed district that encompasses the shale heartland — is not encouraging, as it reveals a sharper rise in souring energy-related loans. “The persistence of relatively low oil prices has begun taking a toll on district bank customers,” the Dallas Fed said in its report.

“Oil-price hedges become less effective the longer prices stay low, and the cushion built by energy firms during the good times gets thinner. Cash flow becomes stretched and collateral loses its value, further pressuring borrowers.” That forces them closer to default unless banks are able to keep their lending spigots open. Many of these loans fall under the umbrella of commercial and industrial (C&I) lending — a category which has been surging in conjunction with commercial real estate (CRE) lending in recent years. While regulators have kept a somewhat lazy eye on rising CRE loans since even before the 2008 financial crisis (and certainly after it), the boom in C&I lending has been met with far less scrutiny — resulting in charts which look like this:

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“..millions of electric customers in Southern California were warned they could suffer power outages of up to 14 days this summer..”

California Power Grid Prepares For Heatwave, Power Outages (R.)

California will have its first test of plans to keep the lights on this summer following the shutdown of the key Aliso Canyon natural gas storage facility as temperatures in the Los Angeles area are forecast to hit triple digits this week. With record-setting heat and air conditioning demand expected in Southern California, the state’s power grid operator issued a so-called “flex alert,” urging consumers to conserve energy to help prevent rotating power outages – which could occur regardless. Electricity demand is expected to rise during the unseasonable heatwave on Monday and Tuesday, with forecast system-wide use expected to top 45,000 megawatts, said the California Independent System Operator (ISO), which manages electricity flow through the state.

That compares with a peak demand of 47,358 MW last year and the all-time high of 50,270 MW set in July 2006. That could put stress on the power grid, particularly with the shut-in of Aliso Canyon, following a massive leak at the underground storage facility in October. The facility, in the San Fernando Valley, is the second largest storage field in the western United States, according to federal data, and therefore crucial for power generation. All customers, including homes, hospitals, oil refineries and airports are at risk of losing power at some point this summer because a majority of electric generating stations in California use gas as their primary fuel. In April, millions of electric customers in Southern California were warned they could suffer power outages of up to 14 days this summer due to the closure.

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“The Border Force Act gives the Australian government the power to jail, for up to two years, anybody employed by the department..”

Australia Whistleblower Loses Job After Speaking Out On Refugee Camps (G.)

The trauma specialist who condemned the treatment of asylum seekers and refugees in Australia’s offshore detention regime as the worst “atrocity” he has seen has had his contract to work on Nauru terminated. Psychologist Paul Stevenson, whom the Australian government awarded an Order of Australia for his work counselling victims of the Bali bombings, had undertaken 14 deployments to Nauru and to Manus Island in Papua New Guinea. He was due to return to Nauru on Thursday. But after he spoke publicly to the Guardian about his experiences working within Australia’s offshore detention regime – describing conditions in the camps as “demoralising … and desperate” – he was told his contract had been summarily cancelled.

PsyCare, the company through which he was employed to provide counselling to guards working in offshore detention, informed him by email his employment had been terminated. Stevenson said the news was not unexpected. “But the public needs to hear about the consequences people face for speaking out, and to understand the level they go to in minimising access.” [..] The Border Force Act gives the Australian government the power to jail, for up to two years, anybody employed by the department or its contractors who speaks publicly about conditions inside the offshore detention regime, including doctors advocating for better healthcare, or other workers exposing sexual and physical abuse of detainees.

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